Though Newton Coal Supply does actually take possession of coal from local mining companies, it never stores a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining company to its customers. This type of arrangement suggests that Newton is a drop shipper.

Question

Quizplus · Accepted Answer

A drop shipper is a business model where a retailer does not keep the products in stock but instead transfers the customer orders and shipment details to the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer. In the given scenario, Newton Coal Supply acts as a middleman between the mining company and the customers and arranges for the direct shipment of coal from the mining company to the customers, indicating that it is a drop shipper.

Though Newton Coal Supply Does Actually Take Possession of Coal