‘Drop Shipping’ Looks Set to Go Mainstream as More Retailers Get on Board

Online orders ship directly from the supplier’s warehouse, reducing spending on inventory

A growing number of retailers are relying on suppliers to ship online orders directly to customers, a strategy they hope will help them compete with e-commerce rivals without spending more on inventory.

The practice, known as drop shipping, lets retailers offer more products for sale on their websites—such as multiple colors of the same sweater—without having to keep those items in stock. Instead, merchandise ships directly from the supplier’s warehouse. [Full Story]