As written in the article What is Drop Shopping, Drop shipment or drop shipping is a type of retailing where you (the retailer) does not keep a stock inventory of the products they sell. Instead, when your customer orders an item, you pass the order along to a distributor who actually stocks the item in their warehouse. The distributor then packs and ships one unit of each item and sends it directly to your customer on your behalf.

In most cases a typical supply chain is going to involve a product manufacturer, a wholesale distributor, the retailer, and the end consumer. A lot of people think that a wholesaler is actually a middleman, which isn't true. A wholesaler is a necessary part of the infrastructure because manufacturers can't really do all the work the distributors do, they don't want to rebuild that infrastructure, they're far too busy just making products.

Manufacturer uses authorized wholesalers like yourself to distribute products to retailer. Pricing structures depend on the relationship with a manufacturer. Manufacturers may offer different level discounts as mentioned in the eCommerce Glossory

Being a Drop Shipper can mean purchasing large volumes of products at various pricing levels from the manufacturer, warehouse those products and distribute the products to the retailer. As well as negotiating a deal with manufacturer to drop ship those products for you.

One thing that benefits a Drop Shipper is the minimum advertised pricing, or MAP. This phrase suggests  the retail price for an item, but because the retailer may or may not be stocking product, the manufacturer would like to be able to see that the key price or the target price is no lower than a certain threshold. This give extra margin for both the Drop Shipper and the Retailer to make a profit.

Companies similar to DSDI (dropshipdirect.com), Doba (doba.com), DropShipDesign (dropshipdesign.com) offer this business services. You can start one today. If you are looking for a Drop Shipping (Drop Ship, Drop Shipper) eCommerce Shopping Cart. We have the complete solution that you need.