Drop shipping is a supply chain management solution. The process involves you – the retailer or company – no longer holding stock but instead transferring responsibility for stock, fulfilling your customer orders and shipping, to a third party. It is outsourced supply chain management. Why is drop shipping popular? Because it saves a significant amount of time and money on the exertion of running and operating a warehouse and fulfilling your orders.
This image is an accurate, simplified version of the drop shipping process:
Your customer places an order in the usual way and makes a payment to you.
The order is sent directly to your chosen drop-ship supplier, along with payment for the goods.
Your drop-ship supplier fulfils the order and delivers the product directly to your customer.
Could Drop Shipping Suit Your Business?
Whether you are an ambitious
eCommerce retailer or coordinating national fundraising campaigns; drop
shipping undeniably removes the headache of warehousing and supply chain
management. It is an increasingly popular choice as the benefits can include:
and fulfilment costs
What are the Business Benefits?
You can reduce the risk of having
excess inventory – making your business less susceptible to loss. There is no
need to plough funding into new product launches as they no longer require an
investment before they can be sold. You do not pay for stock until a sale. This
allows you to manage cash flow and build and run your online business with
You can bid farewell to in-house
storage facility costs and can offer a wider variety of products, that you
perhaps previously couldn’t consider due to size or space restrictions.
All the hassle of picking and
packing products, inventory management and packaging costs are removed.
Your drop shipping partner
will likely have access to better shipping rates due to the large volumes they
To your end-customer, the
process looks and feels the same. Many drop shippers will allow you to supply
your own labels, providing ongoing branding and the personal touch for your
EC Group has the experience and resources to take your
business to the next level. Our comprehensive range of valued-added services
include: drop shipping, fulfilment and logistics, response handling, and more.
Is drop shipping the next
logical step for your business?
Get in touch with one of our experienced account
managers to have a chat about how we can help.