Which of the following is not an advantage of drop shipping?
time savings
early cusomization of the product
cost reduction in packaging and handling
reduction in shipping costs reduced shrinkage
Solution
Hi,
Option B (early cusomization of the product) is the correct answer.
Explanation:
Drop shipping is a technique which involves transfer of customer orders directly to manufacturer
or the wholsaler who in turns ships the goods directly to the customer. Retailer does'nt maintain
any stock under this technique thereby reducing the costs associated with inventory storage,
packaging, handling, shrinkage and time involved in transportation and shipment of goods.
Thanks.