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Drop Shipping

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What Is Drop Shipping?


Dropshipping is a popular modern eCommerce business model that allows online retailers to run a business without investing in a storefront. As a drop shipper, you do not own any inventory, and there is no customer service element or product handling. All the drop shipper needs to focus on is selling and promoting their products to drive sales and maintain an online store. There is no inventory, returns, or exchange management with drop shipping. Instead, the drop shipper promotes a product, and then once an order is placed, the manufacturer, wholesaler, or another retailer fulfills it.

The purchase is then shipped directly from the manufacturer, wholesaler, or retailer to the drop shipper’s customer, and the drop shipper never actually touches the product they sold. Drop Shippers are not involved in processing and shipping inventory to the customer. Drop Shippers drive sales, suppliers maintain inventory/ship products, and retailers nurture customer relationships. 

What is dropshipping?


As mentioned above, not only drop shippers do not have to invest in a storefront, stocking inventory, or hire/paying staff. Online stores are easy and quick to set up, with many only taking a few minutes, as shop templates are user-friendly. Running this type of online business truly gives you the flexibility to do business from anywhere you can access an internet connection. Another advantage of choosing to dropship is that you can make your online store diverse in product offerings because you are not managing inventory. This allows you to attract a broader range of customers, potentially increasing sales over the long run.

Let’s not forget about the scalability potential that comes with dropshipping. When someone else is in charge of determining the logistics, concentrating on growth is much more doable, allowing you to focus on expanding your reach and profits. Make sure to understand that dropshipping is NOT a 3rd party fulfillment service; it is quite the contrary. Dropshipping is an e-commerce business model that presents the appeal of a low-cost and low-barrier-to-entry strategy to get started in e-commerce; aside from your time, the investment is essentially zero. 

While drop shipping has many pros, there are other cons. Ensure you are fully committed to the time and energy required to succeed before undertaking a job like this. While the possibility of significant profits may seem within reach, you must know what it takes to be successful and understand the challenges that come along with it. When you are involved in the retail business and supply chain, your actions or lack thereof directly affect everyone around you, so understand your critical role in the industry. Drop Shipping can be lucrative, so the market is saturated, and competition is high. 

drop shipping pros and cons



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We provide competitive freight shipping prices and an all-inclusive, easy-to-use shipping experience for our customers. Exceeding our customers’ expectations results in thousands of satisfied customer reviews and repeat business. We believe in the power of our customer relationships. Check out FreightCenter reviews from real customers, and learn what they have to say about their freight shipping experience!

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Choosing FreightCenter

When you choose to work with us, you are choosing to make your shipping process seamless. Here are just some of the benefits working with our Third Party Logistics company will have on your shipping experience:

  • When you partner with FreightCenter, a premier 3PL (Third Party Logistics) company with over twenty-four years of experience within the logistics industry, you are choosing success. Over the decades, our team has dealt with nearly every shipment imaginable. There is no shipment process we cannot help you with!
  • FreightCenter employs a knowledgeable staff that is always willing to learn and grow with industry changes and advancements. We are ready to answer any questions you have throughout the entire process!
  • We act as the middleman between you and your carrier; you do not have to worry about playing phone tag with your trucker. Your agent will directly communicate with you and your carrier, delivering any necessary information or updates between you. 
  • We secure the best transit carrier and route for you at the best price. There is no need to spend hours figuring out the logistics or searching for a worthwhile deal. 
  • We make it easy to ensure your shipments by guiding you toward the best providers. Whether you need full or partial coverage, we have you covered!
  • We arrange the pickups and drop-offs while also making sure to track each shipment in transit. This ensures that you know where your packages are every step of the way! 


Now what are you waiting for? Call FreightCenter to set up your account and discuss your shipment. We are ready to answer your questions and provide solutions! Our team looks forward to partnering with you.

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3rd-Party Fulfillment

As mentioned above, Dropshipping should not be confused with 3rd party fulfillment companies, like Amazon FBA ShipBob, or others. Also known as 3PLs, these companies are hired by clients wanting to outsource their order fulfillment and logistics to a specialized company. In this scenario, the business seeking the 3rd party fulfillment service is looking for a team to store, package, and ship its products to customers. Often the companies seeking this kind of extensive service are online retailers with large amounts of products to store. 3rd party fulfillment centers warehouse, inventory, pick, pack, and ship products for traditional online retailers. 

Outsourcing Fulfillment and Logistics

These services are utilized when performing these duties in-house becomes too time-consuming or costly. There are dozens of 3rd party fulfillment companies for retailers to choose from. FreightCenter can help arrange shipments to these fulfillment centers. We have the resources necessary to organize transportation for inbound and outbound inventory. Our knowledgeable staff has years of experience in the logistics industry and know-how of all things supply chain management.

Especially If you are new to the supply chain and logistics industry, it is wise to outsource the coordination and planning of your shipment. Our agents are trained professionals who understand the complexities and nuances of shipping freight and will provide all the details you need. Each carrier has different rules, regulations, and items they will not ship.

Do you have the time to sift through all the potential suitors? Didn’t think so! Leave the sifting, deal brokering, and documentation to the professionals. Taking these matters into your own hands without proper knowledge is a real risk that can reveal itself in the fines, delays, and miscommunication faced down the line. Instead, work with a FreightCenter agent who can guide you every step of the way!

Importance of Proper Documentation and Transparency

Our team and website are rich in information, with plenty of packaging and shipping tips. While it is essential to nail your packaging methods, Packaging is not the only important shipping detail to remember, but also providing proper shipping documentation. Your FreightCenter agent will provide and guide you in filling out the appropriate documentation, including the bill of lading, packing list, commercial invoices, and required permits and certifications. It is essential to provide accurate information to your FreightCenter agent, such as accurate descriptions, quantities, and values in the documentation. Make sure to disclose all product and shipment details to your FreightCenter agent.

Being fully transparent helps prevent hazardous materials from being shipped with the potential to cause serious accidents, injuries, and the accruement of fines. Being transparent will allow your agent to ensure you fully comply with any regulations and restrictions affecting your shipping process. 

Another area in which choosing a 3PL, like FreightCenter, can smooth out the shipping process is by helping you find the best insurance coverage for your shipment. Purchasing insurance is a no-brainer. When you have already planned to invest in successful transportation, it only makes sense to insure your shipment. We can help you find the best insurance coverage available and make sure you do not have to face the possibility of financial and product loss. 

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Other Types of Shipping FreightCenter Offers

FreightCenter is best known for our Less-than-Truckload (LTL) freight, Truckload (TL), and international shipping. We have an extensive network of reputable and qualified freight carriers nationwide. By using FreightCenters services to book your freight shipments, you’re given discounts you can’t get when you go directly to the carrier. FreightCenter customers save 25%, 50%, 75%, or more than they would have to pay the carrier when they purchase. Not only do you get access to low rates, but you also save time when you use FreightCenter. You can compare rates, services, and transit times from multiple carriers with just one quote. You are no longer wasting time shopping around for rates online. Choose which carrier works best for you.

Our staff of freight experts will handle all the logistics for you. They’ll review your shipment for accuracy, book, and schedule, and even provide tracking services throughout the entire transit. They also take care of all the billing, paperwork, and claims. Have questions about how we can help out with Shipping for your business? Get an instant freight rate quote or call our freight experts at 800.716.7608.

Drop Shipping FAQ

Q. What is drop shipping and is it legal?


Yes, dropshipping is legal and considered a legitimate business model. It involves a retailer transferring customer orders to suppliers or manufacturers who handle the product shipping process directly. With dropshipping, retailers don’t need to stock products, making it a popular choice for e-commerce businesses.

Q. How profitable is drop dropshipping?


Dropshipping can be profitable with a good profit margin of over 20%. On average, dropshipping businesses have a profit margin between 15% to 20%. However, it’s essential to determine the appropriate markup for each product you sell to maximize profitability.

Q. Is Drop Shipping a profitable business?


Yes, dropshipping can be a profitable business. This low-risk model enables merchants to sell products to customers without incurring high running costs, like those faced by wholesalers. With careful planning and effective marketing strategies, dropshipping can lead to financial success.

Q. Is dropshipping for beginners?


Yes, dropshipping is an ideal choice for beginners in the entrepreneurial world. It offers a low-risk opportunity to test new product ideas, freeing up valuable time to focus on marketing. With no upfront inventory costs, small businesses can easily enter the market without the financial burden.