Direct shipping is a shipping method in which products are shipped directly from the manufacturer or wholesaler to the end customer – without prior storage at the retailer. This form of fulfillment reduces storage costs and speeds up delivery times.
With direct shipping, also called direct delivery, the entire warehousing and shipping process is outsourced to the manufacturer or wholesaler. Retailers act primarily as intermediaries and focus on marketing and sales. The physical shipping process is handled entirely by the producer or distributor. This saves the retailer considerable logistics and storage costs.
A major advantage is speed. Since goods are not moved twice or stored temporarily, delivery times are shortened. This is especially pleasing for end customers. At the same time, direct shipping enables easy market testing of new products – without the risk of inventory. This method is often used in the dropshipping model.
Environmental aspects also play a role. Fewer transport routes mean lower CO₂ emissions. In addition, packaging and shipping processes can be standardized. This increases efficiency and saves resources. However, retailers must be aware that they have only limited influence on delivery quality and speed.
In e-commerce, direct shipping has long been an integral part of modern business models. Startups and smaller shops benefit particularly because they don't require their own warehouse. But established providers also use direct shipping to expand their product range – without additional investments in infrastructure.
Direct shipping should not be confused with drop shipping or fulfillment by third parties. While with traditional fulfillment, the retailer retains ownership of the goods, with direct shipping, the supplier is often the contractual partner of the end customer. The legal and logistical structure varies depending on the provider.
Typical terms used in the context of direct shipping are: Express Delivery, Courier Service, Tracking and Tracing and Just-in-Time
