Consumer rights - Drop shipping
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What to do at PriceSpy?
What is Drop Shipping?
Drop shipping is a supply chain management technique. Instead of keeping goods in stock, the retailer transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.
Just as in retail businesses, the majority of retailers make their profit on the difference between the wholesale and retail price, but some retailers earn an agreed percentage of the sales in commission.
Drop shipping is not illegal and is normally nothing to be concerned about when making an online purchase. There are a couple of risks involved, and you should be aware of these.
- Back ordering
- Import duties
If you are unsure about any of this, please refer to: http://newzealand.govt.nz
The PriceSpy Team