6 Facts About Business Everyone Thinks Are True
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. This is an order fulfillment strategy in which a retailer doesn’t stock products in their inventory but instead relies on a manufacturer or wholesaler to ship the orders directly to their customers. By and large there are quite a number of perks that this kind of arrangement in trade comes with and as such has been seen to be such a love for many traders especially for the online merchants. So how does drop shipping work? Read here for more on automated drop shipping.
This all starts by a customer placing 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. Read on for more on the benefits that come with drop shipping as a method for order fulfillment that makes them as popular with the ecommerce merchants.
First and foremost is the fact that drop shipping allows a merchant to have such a wide offer in products as opposed to where they were to stock everything in their stores.
Added to this is the fact that drop shipping as well allows a merchant to come to market quite faster. This is looking at the fact that with drop shipping, wait times are entirely eliminated in the order fulfillment process. It is indeed a fact that drop shipping allows merchants to get to market as fast for the fact that the moment a product has been posted on an ecommerce site, they can start marketing the product.
The other sure benefit that must be mentioned here on the benefits of drop shipping is in the sense that it really allows merchants to take a check on the investments that they make on their inventories. Looking at this, it is as such a fact that ecommerce startups will not really call for as much money to roll out as some have thought.