Dropshipping within e-commerce is a Revolutionary concept that has made it easier for people to start businesses easily and on a low budget. Thanks to The Internet, e-Commerce has become a reality for people. Many entrepreneurs are able to run their businesses from their attic or bedrooms, taking orders online from customers located in different cities or countries.
How Dropshipping Works
One of the challenges of running any commerce business is the shortage of warehousing space. While you can do away with the need for a brick and mortar retail store, the need for storage for goods remains. Dropshipping in e-commerce has done away with this difficulty as well. This kind of program is an arrangement where the retailer can request the wholesaler or distributor to directly ship the product to the retailer’s customer. This ensures that the retailer does not have to spend money on warehousing. Also, the shipping process becomes easier since you don’t have to store inventory on-premises or package and ship the products.
This is also effective if you deliver other items, perhaps you need a parcel tracking software if your main business is sending letters that need to be tracked – especially if they’re certified or contain important items such as legal documents or checks.
Dropshipping within E-Commerce has one drawback. You cannot always check if the parcel or shipment has actually been sent to the customer. You might spend a lot of time building your profile and reputation as a retailer online. One misplaced shipment can lead to bad reviews and affect your business badly. To ensure that the shipment reaches your customer in time, you need to have a reliable system in place that helps you keep track of where the parcel is at any given time. This also offers further motivation at the distributor end to process shipping requests on time.
Dropshipping within e-commerce is a very profitable business model for retailers who know how to use the system do generate maximum profit. However, you have to ensure that the parcels reach the customer on time. Since you are not personally overseeing the packaging and shipping of parcels, the next best thing to do is to rely on a shipping or package tracking system.
Using Package Tracking Software to Ensure Delivery
In addition to investing in a tracking software, you also need to invest in some time to find the right distributors. Not all wholesalers offer Drop shipping as part of their services. Some distributors try to undercut retailers’ profit by directly reaching out to customers. Therefore, you have check distributor policies to see if they are aware of the concept of drop shipping. Also you have to ensure that the packaging meets your standards. You would not want the packaging to carry the distributors’ contact details or brand name. Drop shipping is a very profitable business model; however, lack of reliable wholesalers or distributors could be a hindrance to business growth. In addition to a good shipment tracking device, you also need the cooperation of the wholesaler for you drop shipping arrangements. The wholesaler should also offer you other benefits such as a larger profit margin.
You have to work on finding a mutually agreeable shipping system. Some courier companies offer discounts to businesses and bulk orders. If your wholesaler agrees to use this type of shipping, you could save a lot of money by not having to pay too much for shipping. Dropshipping in ecommerce takes patience but stands to offer huge rewards.