Drop shippers utilize sellers' facilities and in-transit time as warehousing facilities.

Question

Quizplus · Accepted Answer

Drop shippers do not keep goods in stock but instead transfer customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. This process effectively uses the in-transit time and the supplier's facilities for storage, minimizing the need for physical warehousing by the drop shipper.

Drop Shippers Utilize Sellers' Facilities and In-Transit Time as Warehousing