DROP SHIPPING

third party deliveries


These are third-party shipments, sent from different countries in the world when the seller is actually located in a completely different country.

In these deliveries, there are three parties to the transaction: the supplier, the buyer and the seller, who are all from different countries.

The goal in shipping in this way is to make a profit and therefore the seller does not reveal the identity of the supplier to the buyer.

This is where the international shippers come in, both on the supplier's side and on the buyer's side, who actually take care of moving the shipment from point A (the supplier) to point B (the buyer) - without revealing the identity of the supplier and they must check the legality of imports in each of the countries, and this in order to provide the best service more for each of the parties in the transaction.

This method is very common in E-COMMERCE deliveries but not only.

 

This method has many advantages:

  1. A big profit for the seller Saving in transportation costs, since the goods move from one point to another without bringing the shipment to the seller's country (and paying higher costs for transporting the cargo both to the seller's country and from there to the buyer's country). Time saving since the transport is made directly from the supplier to the buyer. Reduction of the inventory held by the seller - instead The seller will keep inventory for the required goods that will also be recorded in the books and will have depreciation, he purchases directly from the supplier and transfers to the buyer without actually holding inventory. Exchange of paperwork - this is to protect the identity of the supplier from the recipient.

 

This method also has disadvantages:

  1. The fear that due to human error, the buyer will know the identity of the supplier and thus be able to bypass the seller. The need to check import legality in each of the countries to avoid problems during the customs clearance process in the destination country mainly.

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