Drop shipping is a practice of order fulfilment that allows online merchants (or store owners) to sell online without having to stock inventory or ship orders. In the whole process, when a product is sold, the 3rd party wholesaler or manufacturer ships out the product directly to the customer and the merchant / store owner never sees or handle the product but still earns the profit. Drop shipping is a great way to start an online business conveniently and practicality without worrying about stock as it helps in minimizing the risks in the e-Commerce industry.
Today, we will discuss a few reasons why e-Commerce retailers should consider drop shipping.
Taking risks with new product lines
Drop shipping gives online retailers a way to try new product lines as there is no risk of having an inventory to the store. Your business will less likely to lose any revenue since there is nothing like excess inventory or stock when dealing with drop shipping. For example, if you offer Samsung TVs on your online store site and thinking about partnering with the new TV brand. A drop shipping agreement with a new manufacturer (or brand) easily gives you the freedom to test a new product on your online store and see how well the new product is doing without worrying about making big commitments that requires some a huge stock investment.
Lowering the costs
You do not have to worry about competing with other businesses by offering lowest shipping prices and losing money since drop shipping gives you the option to sell the products online by getting better shipping rates from your 3rd party wholesaler or manufacturer. Another benefit of considering drop shipping for your e-Commerce store is not to worry about losing money on the goods that gets damaged. For example: if you maintain an inventory of crystal chandeliers and you buy it from one of your partner. The probability of damaging the product is higher as the product has to change hands more time since you are getting the product from your partner then shipping it to the customers. But in drop shipping, the 3rd party wholesaler is responsible for shipping so you do not have to worry about losing money on damaged goods.
No big investments
The best part of drop shipping is not to worry about keeping a big inventory in hard all the time. Since there is no inventory, as a business owner, you do not have to invest money on storage facility. Think of the places where you have to make big investments in order to keep the stock in-hand. You need a facility to store the stock and if you are spending so much money on stock and the facility, you will need a security system too for protecting the stock. If you are putting money in security system, you also might consider putting some money in installing some cameras in the facility so that you can keep an eye on the inventory. With drop shipping, all you need is a website where you can showcase the product line.
nopCommerce offers multi-vendor and drop shipping support enables you to sell online without having to stock inventory or ship orders. When drop shipping is enabled, each product is assigned to a particular vendor whose details (including email address) are stored. When an order is placed an email is sent to the vendor of each product in the order. The email includes the products, quantities, etc. The vendor then ships the item to the customer on behalf of the merchant, who typically pays each of their vendors at the end of the month.
In nopCommerce, products from multiple independent vendors appear in the common product catalog and your website visitors can shop at one web store even if your products are supplied by hundreds of different vendors from all over the world. Each vendor could be provided with an administrator panel access to manage their products, review sales reports and order details regarding their products. Vendors do not interfere with each other's activity.
When a sale is made, all money will go straight to your account. Afterward, a store owner will manually distribute a payment to each vendor according to the order history. Each vendor has its own admin panel where he can manage his catalog and see placed orders.
Author: Lavish Kumar
Comments
Your information is very helpful
Let suppose in Dropship, I have store and I am selling multiple vendor's Items on my site, when Customer come on my site and he bought multiple Products, those are associate with multiple vendors
and customer suppose to receive all Items in one shipment.
But in this case all items ships from different vendors and may different timing
How possible Customer is received all item in one shipment ?