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Drop Shipping

By , About.com Guide

Definition: The process in which a retailer markets a product, collects payment from the customer and then orders the item from a supplier, to be shipped directly that customer. The retailer's profit is the difference between the amount collected and the amount spent. No inventory is held and the retailer is not involved in the shipping.
Examples: To expand our product listing online, we use several suppliers that offer drop shipping.
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