Drop shipping is a retail fulfillment method where a store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This method has gained popularity due to its low overhead costs and the ability to offer a wide range of products without the need for inventory management.

One of the critical aspects of drop shipping is the establishment of clear policies that govern the relationship between the retailer, the supplier, and the customer. These policies are essential for ensuring smooth operations and maintaining customer satisfaction. Below are key components that should be included in any drop shipping policy:

1. Order Processing:

It is vital to outline the order processing timeline. Typically, orders should be processed within 1-3 business days. This timeframe includes the period for confirming the order with the supplier and preparing it for shipment.