A concept that has existed offline for many years but has risen to prominence in the e-commerce era. Some online sales companies carry no inventory of the goods they are selling online. Instead they take the order and pass it on to distributors or manufacturers who then pack and dispatch (ship) the goods directly to the customer - this is drop shipping. Drop shipping performs a similar function to fulfilment houses and is an essential element in the concept of the virtual business.
Key Concepts in e-Commerce