By Heleen Vangoidtsenhoven

The traditional model of retail is based on purchasing and storage of products. Widely purchases will result in lower prices and higher margins. On the other hand provides increased online trading new possibilities. This is where many parties choose for drop shipping, a supply chain management technique where the supplier delivers directly to the customer. The margins are smaller but the financial risk of procurement and storage are avoided. This article discusses how drop shipping changes the traditional relationship between suppliers and retailers as well as the advantages and complications of this technique.

Drop shipping is an effective method to be able to meet the demands of the consumer. Furthermore, products which are impractical to store and keep in stock can be added to the collection. Even though dropshipping is routine, it is not simple. However, with the growth of e-commerce and the changes in retail interest in drop shipping will certainly increase. It is far from a new method but with the growing market of online sales a persistent and interesting option.

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