Drop shipping is a supply chain management technique in which the retailer d oes not keep goods in stock, but instead transfers customer orders and shipm ent details to either the manufacturer or a wholesaler, who then ships the g oods directly to the customer. As in retail businesses, the majority of reta ilers make their profit on the difference between the wholesale and retail p rice but some retailers earn an agreed percentage of the sales in commission , paid by the wholesaler to the retailer.