For countless small companies, the hardest part of ecommerce is the process of obtaining and fulfilling orders. The industry is changing constantly and ecommerce fulfillment has grown increasingly complex with intricate technology and more ways to reach customers, making it harder for companies to know the best way to deliver products. Whether you’re just starting out or you’ve been at it a while, in-house shipping seems to be the best way to fulfill orders; why pay extra expenses and go through a third party when you can just do it yourself, right?
However, in-house dropshipping can be a hassle that requires strict inventory management, accurate order handling, and the hiring and training of employees, as well as a system for handling order issues, and this can be too time-consuming for even the most efficient companies.
If this resonates, and you’re looking for a simple, long-term solution, dropshipping fulfillment can be the answer for you. With it, ecommerce businesses are able to reduce costs, risk of carrying inventory, and best of all – still fulfill customer orders in a timely manner while managing day-to-day business operations! But how does dropshipping work in the first place? This guide will provide everything you need to know to finally shift the burden of order fulfillment off your busy shoulders.
What Is Dropshipping Fulfillment?
Dropshipping is a unique business model in which you can sell products without ever having to stock, store, package, or ship them yourself; in short, they handle both inventory and fulfillment. You simply outsource the inventory, packaging, and shipping process of any orders you receive to a trusted third-party fulfillment service, who then handles everything from that point on – delivering directly to your customers with no hassle for you! This way, there’s no need for tedious product handling or supply chain management.
Let’s talk about the supply chain to better understand your options and where your business falls in the process. The term “supply chain” refers to the course a product follows from its origin through manufacturing, packaging, and shipping, until it reaches the customer’s hands. There are three key players in the supply chain process that we want to help you understand: manufacturers, wholesalers, and retailers.
- Manufacturers create and produce the product, yet typically don’t sell to consumers directly. While most companies who order products in bulk opt for a direct order from a wholesaler, purchasing straight from the manufacturer is still an economically sound option since they offer goods at highly discounted prices; however, there are additional steps involved that may make obtaining supplies via a wholesaler more appealing overall.
- Wholesalers bridge the gap between manufacturers and retailers, purchasing goods in large quantities from producers to resell them at a slight markup. Most wholesalers have significantly lower ordering limits than makers, often stocking items from multiple companies across various industries or specialties. Generally speaking, they deal exclusively with merchants and not directly with end consumers. Companies who purchase their product from wholesalers are still responsible for their inventory, packing, and shipping.
- Retailers are any person or business who sells goods directly to the consumer for a profit. If you’re in the dropshipping game and manage orders through third party companies, but have direct contact with customers, then yes – you’re part of this retail circle!
Dropshipping Fulfillment Advantages
What are the rewards of dropshipping fulfillment for your business? In short, it allows you to present an array of items in your ecommerce store without having to worry about any inventory management, or actually keeping any stock in-house. When you team up with a fulfillment company like DSers – an AliExpress dropshipping companion – one click is all it takes and then these products will be ready for sale on your website at no additional cost. From there, they handle all packing and shipping processes to get the product directly in your customers hands, without ever passing through yours.
Other benefits include:
- With dropshipping fulfillment, you won’t need to invest thousands of dollars in inventory before launching your ecommerce store or expanding your product range. This makes it an incredibly cost-effective option with a low amount of cash required up front.
- Setting up a dropshipping business is simple and straightforward. You don’t need to be worried about stock control or storing products as each supplier has their own fulfillment warehouses for packing and delivery of your customers’ orders. All you require is just a laptop, a trusted dropshipping fulfiller, and you’ll be good to go! How do you find a trusted dropshipping fulfillment supplier? We can help.
- Starting small. Low overhead means that you don’t need a big budget to get going, making dropshipping an ideal home-based business option. As the store grows and succeeds, its potential is limitless.
- Scalability made easy. As a traditional retailer, the more orders you receive, the more manual effort is necessary to fulfill them- that’s quite an endeavor for any small team! Dropshipping simplifies everything so you’re able to effortlessly expand sales on any platform or channel without ever being overwhelmed by your workload. With dropshipping order fulfillment, suppliers do all of the behind-the-scenes work for you; now it’s easier than ever before to maximize those profits and achieve success!
- With dropshipping, your retail offerings are never restricted. When your supplier brings in a new product to their fulfillment center, you can list it for sale on your store free of charge! This allows you to provide customers with an ever-expanding selection, which is sure to keep them coming back time and again.
Make Your Fulfillment Company Your Partner
There is an amazing opportunity out there in dropshipping; it’s a great time to explore new processes that take the load off of you, and let you focus on running your business. One of the most important factors to consider when adding dropshipping to your process is how to choose the best fulfillment partner. You want a company that you can trust to handle your product and your fulfillment, from start to finish . Launch Fulfillment wants to be that partner for you.
Please reach out to us for more information about dropshipping fulfillment and our team will be able to help you out.
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