Legal Definitions - drop-shipment delivery

Drop-shipment delivery is when a manufacturer sends goods directly to the consumer instead of sending them to a wholesaler first. The wholesaler may still receive a portion of the profit if they take the order.

• A customer orders a pair of shoes from an online store. The store doesn't have the shoes in stock, so they contact the manufacturer who ships the shoes directly to the customer.
• A small business owner orders a bulk shipment of t-shirts from a manufacturer. The manufacturer ships the t-shirts directly to the business owner's customers as they place orders.

These examples illustrate how drop-shipment delivery works. Instead of the manufacturer sending the goods to a middleman (wholesaler), they send them directly to the end consumer. This can save time and money for both the manufacturer and the consumer.