Drop Shipments: Convenient, Complicated, Confusing

Dolle, Pamela
January 2008
Journal of State Taxation;Jan/Feb2008, Vol. 26 Issue 2, p17
Academic Journal
The article discusses the impact of supply chain management technique, called drop shipping, and how it functions. It is averred that drop shipping corresponds to convenience for the retail merchant as well as to the customers. It enables the retailer to provide more commodities for sale and affords the consumer a better choice in the absence of retailer to persuade a large inventory. The general procedures on how drop shipping works include the retailer takes an order for intangible personal property from its customer, put an order with manufacturer for the property, distributor ships the tangible personal property right away to the retailer's customer, and the retailer transmits the customer an invoice.


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