Drop-shipping and Cross-docking

Drop-shipping is a retail fulfillment method where the seller doesn't keep products in stock. Instead, when a customer orders an item, the seller purchases it from a third party, who then ships it directly to the customer. This minimizes inventory costs for the seller. Cross-docking, on the other hand, is a logistics practice where incoming goods are immediately sorted and shipped out to customers without being stored in a warehouse. This speeds up the supply chain, reduces storage costs, and improves efficiency by moving products quickly from arrival to delivery. Both methods streamline inventory management but in different ways.