# drop shipment

*Last updated: 2026-06-22*

> A retailer sells goods to an end customer and instructs the supplier to ship directly to that customer—without ever stocking or handling the merchandise itself.

A retailer sells goods to an end customer and instructs the supplier to ship directly to that customer—without ever stocking or handling the merchandise itself. In drop shipment, the retailer owns the customer relationship and issues the invoice, while the supplier manages physical fulfilment entirely. The model is common in e-commerce and for bulky or specialised goods where holding inventory would tie up capital unnecessarily. Customs compliance requires careful handling: the buyer, the importer of record, and the consignee may all be different parties, creating layered declaration and rules-of-origin obligations. Drop shipment should not be confused with consignment sales, where an intermediary acts in their own name but on account of a third party.

**Source:** [https://de.wikipedia.org/wiki/Streckengesch%C3%A4ft](https://de.wikipedia.org/wiki/Streckengesch%C3%A4ft)

## Quick Facts

| Property | Value |
|---|---|
| Term | drop shipment |
| Language | EN |
| Word count | 114 |
| Last updated | 2026-06-22 |
| Source | https://de.wikipedia.org/wiki/Streckengesch%C3%A4ft |

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