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The drop ship method is ideal for retailers who wish to reduce, minimize or completely avoid carrying inventory. Such retailers pocket the difference between the wholesale price of the product (which they pay to the distributor) and the retail price that they charge. The shipping costs generally go to the wholesalers as well, because they are responsible for the packaging and the delivery of the product. Drop shipping allows retailers to opt out of operating a warehouse and paying additional employees to work there, which in turn allows them to lower their prices and compete with rival retailers. Drop shipping makes larger selections of high-quality, brand name merchandise available to every type of retailer. Drop shipping can also increase the value and the convenience of the online purchases that consumers make. Online retailers in particular may benefit from drop shipping.