Drop shipping Terms of Service

Drop shipping is a retail fulfillment method in which a seller does not keep it's own goods in stock, but instead directly ships items to the end customers, by forwarding the orders and shipment details to the original manufacturer, another retailer, or a wholesaler inbetween with stock, who then ships the goods directly to the end customer.

In the retail businesses, the majority of shops make their profit on the difference between the wholesale and retail price, but some retailers earn an agreed percentage of the sales in commission, paid by the wholesaler to the shop.

This Drop shipping Terms of Service agreement template is setting up a Drop Ship account between the Vendor and the Drop Shipper (Online shop without stock), in order to get more sales volume. The following topics are covered: