The retailer or dealer takes an order from the wholesaler or manufacturer, but instead of shipping the product to that retailer or dealer, the manufacturer or wholesaler ships it directly to the consumer. Drop-shipping eliminates the need for the seller to purchase and carry product inventory.

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1. The retailer or dealer takes an order from the wholesaler or manufacturer, but instead of shipping the product to that retailer or dealer, the manufacturer or wholesaler ships it directly to the consumer. Drop-shipping eliminates the need for the seller to purchase and carry product inventory.