How the “Drop Ship” works

Many businesses on the internet represent “drop ship programs” through manufacturers of the products they represent on their web sites. This works by reducing the inventory kept on hand and allowing for a decrease in price for the item. Most manufactures do not sell directly to the public (consumer) but sell in bulk to retailers or stores. The manufacture has the ability to pick pack and ship any item but not to detail a direct service to hundreds and thousands of individual customers through individual sales. Their standard accounting represents a pre approved net 30 day account based on a pre approved credit rating. In order to receive the item in a short turn around time this “drop ship” is essential to have access to for the e business and for the customer. Shipping is a very real cost to e business and the “Free” is usually attached to a long shipping time with shorter times available for greatly increased cost to the customer. Book rates and bulk rates can be less but medical supplies usually have a greater cost/time associated with them when purchased through the internet. The customer usually needs it now! The difference between the 3 day rate and the overnight rate (which usually takes 2 business days) can be $50 to $100. The control on shipping also allows for returns on merchandise should that be needed. When ordering off the internet one should try to make sure the product being ordered is what they want/need. Most returns are now marked up if the “drop ship” has to be returned as the carrier is charging more for a pick up than for a delivery. You can also expect 20% to 25% re-stocking fees on return merchandise charged by the manufacturer. There is also a need to identify the item by a “return merchandise authorization #” RMA so the credit can be identified to the merchant.

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