Drop Shipping and Its Benefits
When it comes to order fulfillment strategies, drop shipping is one of the strategies and one that is sure growing so much in use with the retailers. In this style of order fulfillment, what happens is that the retailer will not necessarily have to stock the wares in their stores but will depend on their manufacturers and wholesalers to ship the products directly to their customers. As a matter of fact, this kind of arrangement and dealing has quite a number of advantages and as such making it so attractive to a number of merchants especially the online merchants. The question thus goes, How exactly does drop shipping work? Read here for more on automated drop shipping.
Basically, this all starts at the point where a customer places an order for a drop shipped product online to a retailer. Having so received the order and the payment as well for the drop shipped order, the retailer will then manually or automatically contact the wholesaler or the manufacturer issuing them with a purchase order for the product and give them instructions to have the product shipped directly to the particular customer who ordered for them. Then the wholesaler or manufacturer will then fulfill this and the retailer or merchant will have in the whole deal have earned their profit share. Check it out here for more on the benefits of drop shipping that have as such made them such methods for order fulfillment that have so grown in popularity especially with the ecommerce merchants.
One of the benefits of this is the fact that they allow merchants to offer their customers such a wide product offering as opposed to the deal they would otherwise have were they to stock everything in store.
Over and above this, you will as well come to appreciate drop shipping as a sure alternative for the fact that it so allows merchants to market quite speedily. This is looking at the fact that with drop shipping, wait times are entirely eliminated in the order fulfillment process. As a matter of fact, with drop shipping, a merchant can start marketing a product as soon as it has been posted on the ecommerce site.
One other benefit that needs to mentioned as a fact on drop shipping is that it sure reduces what a merchant will have to have as an outlay on their inventories. It is as such a fact that thanks to drop shipping, ecommerce startups will not really require the interested merchants to sink as much in stocks for them to get up and running.