From Longman Business Dictionarydrop-shippingˈdrop-ˌshipping noun [uncountable]1COMMERCETRANSPORTan arrangement between a company that sells goods and the supplier or producer of the goods. The goods are advertised and marketed by the company selling them, but delivered directly from the supplier or producer to the customer2American EnglishTRANSPORT when letters, packages etc are taken to a place nearer to the postal address before being posted, in order to save US postal service charges
