#drop shipment

[gstindiaguide-blog1]

Rejection of ITC on ground of non-physical receipt of goods quashed; Patna High Court held deemed delivery to end-consumer under dealer’s instructions satisfies Section 16(2)(b) of CGST Act.

Case: M/s Utkrisht Trade Solutions Pvt. Ltd. & Ors. v. State of Bihar & Ors.High Court of Judicature at PatnaCivil Writ Jurisdiction Case No. 17914 of 2023 (Lead Case, with connected CWJCs Nos. 470/2024, 17613/2023, 17636/2023, 17652/2023, 17654/2023, 17920/2023, 17922/2023, 18089/2023, 18297/2023, 18326/2023, 18394/2023, 18473/2023, 18497/2023, 18662/2023, 15/2024, 136/2024, 211/2024, 312/2024,…

Rejection of ITC on ground of non-physical receipt of goods quashed; Patna High Court held deemed delivery to end-consumer under dealer’s instructions satisfies Section 16(2)(b) of CGST Act.

[mygermanycom]

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[mygermanycom]

Drop shipment services by mygermany

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[vemmaster1]

First

[sendfromchina-blog]

What is Drop Shipping?

Drop shipping is a new product fulfillment model in which merchandises are delivered from a manufacture or original supplier directly to a buyer after the sale is generated by the retailer, without passing through the warehouse of a distributor or retailer. In a drop shipment arrangement, the sellers act as a middleman between the manufacture and the buyers. Profits of the retailers come from the difference between the wholesale and retail price of the items sold.

Drop shipment is a great way to start an online business or supplement an already existing business as it requires no startup capital and there are minimal risks. Although slight delay between ordering and drop shipment may be existing, it’s ok because there is no need for a customer to walk out with their purchases. There will be the benefit of investing in products that you are sure will sell.

One of the biggest differences between drop shiping and traditional retail store is the inventory control. In a traditional retail store setting, products are ordered in bulk from the manufacturer and stored in a secure warehouse until displayed, which requires a proper storage and must employ peoples to handle the stock and fulfilling orders. While with drop shipping, the retailer doesn’t need to keep a large inventory on the premises. More energy and time can be saved from all inventory management and order fulfillment chores to expend the market and increase sales.

Manufacturers themselves are also glade with drop shipment, because the retailer essentially becomes an additional salesman of them. With drop shipping, the manufacturer can use inexpensive shipping methods from China local delivery companies (if products are drop shipped from China) to get the ordered product to the worldwide customer directly. And they will also own much more secured warehouse space than most retailers, so their products remain safe until ordered.

In fact not all manufacturers allow drop shipment. Since for every individual orders, personnel have to be assigned to process and ship it, which means the main shipping and receiving system may become bottle-necked. Some manufactures only deal in bulk orders to larger retailers, making it impossible for smaller outlets to custom order only a few items.

For many small retailers and internet-based stores, drop shipment solves many more problems than it creates. Shipping can be left to professionals, and no inventory to handle and more retail space is available. Exotic or over sized goods can be offered to international customers without worrying about importation costs or expensive storage. Manufacturers can also benefit from reduced shipping costs and more sales exposure of products.