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Originally Posted by Les4048
You are correct sir, and this isn’t what RadioGuy is doing anyway as he doesn’t get items shipped direct
“Dropshipping is a method of trading whereby you, the retailer, do not keep products in stock. Instead you partner with a wholesaler who is holding stock, you transfer customer orders and delivery details to them and they ship the goods directly to the customer. Most retailers make their profit on the difference between the wholesale and retail price”
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Absolutely agree - It's not dropshipping - it's JIT (just in time) supply (or that's what its supposed to be).
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Originally Posted by bl52krz
Common sense should be employed before you make statements. My question to you is, can you sell something you do not own? A yes or no will do. Does the said action amount to fraud?
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Yes, No -- See below. As an aside sales assistants do it every day up and down the country. Another example is auction houses sell stuff they don't own all the time (although they usually have posession at the time of sale). When you order some carrots from the supermarket for delivery the next day - who do you think 'owns' those carrots while you pay the supermarket up front?........
Quote:
Originally Posted by Les4048
Yes you can and I do it regularly when a customer requests spare parts. If I don’t have it in stock I order it from the supplier and it arrives next day and I invoice it, sometimes for immediate payment other times on an account. Now I have anything up to 120 days in some cases to pay for the parts so effectively I’ve sold them and got the money in before I pay for the goods. It’s called efficient business and good cash flow
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Absolutely, and for traders able to pull it off smoothly it makes a great difference. Carrying stock paid for in advance with only a sales forecast to go on, or worse waiting for payment after supplying goods or services, can often make business's that are turning over well with good order books go under.