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Dropshipping

Also Known As Drop Shipping
Direct Sales and Distribution Channels

Dropshipping is a retail fulfillment model in which the seller markets products and accepts customer orders without holding inventory, transferring each order to a manufacturer, wholesaler or fulfillment house that ships the product directly to the customer. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/

Facts
Core Mechanism
Seller accepts customer orders without holding inventory; the order is forwarded to a manufacturer, wholesaler, other retailer, or fulfillment house, which ships the product directly to the customer. 1
FAQs

Who ships the product in a dropshipping sale?

A manufacturer, wholesaler or fulfillment house ships directly to the customer, not the seller.

In dropshipping the seller markets products and accepts customer orders without holding inventory, transferring each order to a manufacturer, wholesaler or fulfillment house that ships the product directly to the customer.
Connections

Associated With

Amazon, Companies and Brands

Amazon found early success applying the drop shipping model to book sales, listing over a million titles while physically stocking about two thousand.

Source Wikipedia, Drop Shipping

Open Questions

Sources
1. Wikipedia, Drop Shipping
Wikipedia
  • lead section
    Drop shipping is a form of retail business in which the seller accepts customer orders without keeping stock on hand.
  • lead paragraph, sentences 1-2
    Drop shipping is a form of retail business in which the seller accepts customer orders without keeping stock on hand. Instead, the seller transfers the orders and their shipment details either to the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer.
  • Associated With: Amazon
View the Source
Open Questions (1 open question)
In what year, or decade, did dropshipping emerge as a named retail practice distinct from ordinary mail-order drop-shipping arrangements?

The source article defines dropshipping and discusses its modern online-retail context, including early platform-era examples, but names no year or decade for when the practice began or when the term itself entered use.

What would resolve this A retail-history source giving a specific year for the first documented drop-shipping arrangement, or explicitly stating that mail-order drop-shipping has no single citable origin because it grew gradually out of ordinary wholesale distribution.
Business HistoryWikipedia, Drop Shipping

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