Because only the drop shipper has physical facilities, the notional online " retailer " faces much lower costs.
2.
The profits are split between the drop shipper and the nominal seller at a pre-arranged rate, usually involving a commission structure.
3.
A drop-shipper relies on a third party, like an online fashion blog to generate consumer interest and initiate an electronic order that is sent to the drop shipper's warehouse for fulfillment.
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