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Please email us at sales@ryepac.com, if you are interested in using us for your drop-ship fulfilments.

What Is Drop Shipping?

Drop shipping is both a sourcing a fulfilment business model where the retailer (you) never actually owns the inventory you are selling. Instead, you are acting as a middle man that is selling the goods on your own website and when you receive an order, you pass that order onto the drop shipping company for them to pick, pack and fulfil. Your profit is the difference between what you charge your customers on your website and what the drop shipping company charges you.


How Does Drop Shipping Work?

Drop shipping is straightforward please see the overview of a drop shipping transactions.
  1. A visitor arrives at your online store (123456.com) and makes a purchase.
  2. You receive the order and either manually or automatically forward that order onto your drop shipping partner.
  3. Your drop shipper packages up the order and send it to your customer on your behalf.

The Benefits of Drop Shipping

The biggest benefit to drop shipping is the very low start-up costs and the ability to offer a large selection of product without purchasing inventory upfront and managing that inventory. Drop shipping can also be a great tool to help diversify your inventory and test products since it’s just a matter of adding the new product to your store.
The drop shipping model has a number of advantages, including:


The Difference Between a Manufacturer and Drop Ship Wholesaler

It’s easy to get confused between all the terms when you’re searching for a drop shipping supplier. Many times it seems like they are used interchangeably, but there’s differences between each of them and it’s important to know those differences.
A manufacturer, actually manufacturers the end product that you are purchasing. Some manufacturers will have a drop shipping program in place where you can partner directly with them. This is ideal because there are no middle men so you will usually be getting the best prices which means you can get the greatest margins.
A drop ship wholesaler is someone that purchases products from the manufacturer and then drop ships them on behalf of you (the retailer). Many times, manufactures just want to focus on manufacturing and don’t want to deal with selling to small companies so they will sell in bulk to a drop ship wholesaler who will then in turn, create a drop shipping program for retailers


Drop Shipping Margins

Your profit is the difference between what you charged the customer and the price the we the drop shipper charges you. Typically, most drop shippers charge around 20% higher than our prices.