Drop Ship Vendor, refers to a supplier or manufacturer that directly ships products to customers on behalf of a retailer or seller, bypassing the traditional distribution process. In this business model, the retailer does not hold the items in stock. Instead, when a customer places an order, the retailer forwards the order and customer details to the DSV, who then ships the product directly to the customer.
This arrangement allows retailers to offer a more extensive range of products without the need to invest in inventory or manage storage. DSVs play a crucial role in the dropshipping process, enabling retailers to expand their product offerings, reduce inventory costs, and streamline operations. The relationship between the retailer and the DSV typically involves clear agreements outlining shipping methods, quality standards, order processing, and communication protocols to ensure efficient and reliable order fulfillment.