BUS 151 Lecture Notes - Lecture 4: Drop Shipping, Williams International
9 May 2020
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Global flow of materials components moved elsewhere for assembly. Global distribution of product finished product moves to final markets. Merchants take title and assume risks. Efficiently move goods from home country to host country. Buy from firm, sell to retailers or final consumers. Often enjoy exclusive rights for product or region. Do not take title but represent the firm. Take orders from buyer and tell seller to ship to buyer. Buyer pays drop shippers who pays firm. Do not hold inventories, offer minimal promotional help. Advantage to firm: easy to establish marketing presence. Etc exporting trading companies: can act as export department for firm or take title to products. Mea manufacturer"s export agents are agent middlemen. Emc export management companies are agent middlemen. Earn commission, or salary, or work on retainer. Helpful in markets where firm has little experience. Require less investment (financial and personnel) in market. Reduce gross margins, impede customer communications, hinder market assessment.
