Distributor or Drop shipping, the Differences!
- Drop Shipping – Drop Shipping is a process similar to retailing, but here the retailer isn’t required to stock the goods up in bulk quantity but instead chooses to pass it on to the customer’s with an order placement in advance and the shipment details to the wholesaler or the manufacturer who then releases the good’s directly to the customer. This process is known as Drop Shipping. There are many advantages of Drop Shipping, below are a listed few of them:
- Convenient Payment Option
- Storage Convenience
The major benefit in this distribution procedure is that the investor isn’t required to purchase goods in bulk and then pile them up in a warehouse. They can conveniently purchase the required items based on the orders.
- Distributor – This procedure is entirely opposite to that of Drop Shipping. In this the wholesaler needs to stock up the goods in bulk quantity much in advance and releases these goods through the distributor into the market.
- On the Spot Payment
The major benefit in this form of distribution is that the payment received is also in a lump sum against the delivery of the goods. The main reason being the wholesaler doesn’t need to supply one product after the other to each customer but through the distributor can provide the goods in bulk quantity or as per the demand in the market. The major difference between the two distribution channels Drop Shipping and Distributor/Wholesaler are that in case of Drop Shipping it’s instant payment against delivery whereas in case of the Distributor it’s when the adequate amount of sales has been made only then can they collect their respective amounts.
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