When running an online store, we do not have to be responsible for the storage and shipping of goods. Not so, if we choose dropshipping. What is dropshipping really? What are the different cells responsible for in such a logistics model? These questions will be answered in today's post.
What is dropshipping?
Dropshipping is a modern sales model, in which the online store is responsible only for contacts, marketing and order processing. The warehousing of goods and their shipment to the ordering parties is on the side of the dropshipping service provider. In this model, the vendor acts as an intermediary between the wholesaler, manufacturer or distributor and the customer. After the customer orders the goods, the vendor (in this case, an e-commerce platform) sends a request to the supplier of the goods (this action is performed by updating the inventory online even before the order) and, if the goods are available, accepts the order from the customer. After receiving payment from the customer, the e-commerce store sends the supplier the amount due for the goods minus its margin. The warehouse, after receiving the complete information using the connected warehouse systems with ERP, sends the ordered goods to the recipient.
How to start the adventure of dropshipping?
To begin the adventure of dropshipping, you need to choose a product to sell in our e-commerce. It is worth noting that dropshipping allows you to sell virtually any type of assortment. It is necessary to have your own online store on one of the platforms that allow you to select, purchase and carry out the sales process. The easiest way out is to use e-commerce software in a subscription offer or choose one of the open-source tools such as WooComerce. There are many platforms that bill in a subscription or commission model. These include: Shopify Shoplo Shoper At the moment, everyone should find a platform that meets the expectations and requirements that the product sets. In the case of engaging a professional agency to create a new e-commerce, we do not need to participate in each stage. All settings for integration between devices and platform testing will be adapted to our needs.
What is the online store responsible for?
The online store is the primary place of work and e-marketing activities, where products will be put into electronic circulation. Sourcing products for sale in the online store involves establishing a relationship with a wholesaler and integrating with its databases. This provides information about the products, their photos, but also their prices and inventory. As a result, once the connection is made, the products will be on the virtual shelves of the general store. This solution guarantees easy and quick access to thousands of products.
What is the responsibility of the warehouse in the dropshipping process?
The warehouse in this logistics model has as significant a role as the online store. The warehouse is largely responsible for coordinating the process of delivering goods to the customer through an intermediary such as a dropshipper, and for picking and packing the right goods for further shipment. A WMS system created to manage the processes involved in e-commerce operations is responsible for the smooth operation of the warehouse.
Is dropshipping better than the classic online sales model?
In the case of dropshipping and the associated WMS system, the warehouseman following the loading path is able to specify the location of the goods quickly and easily. So the answer is a resounding YES. The best example would be to illustrate the process of preparing goods for further shipment. In a standard warehouse, employees may take much longer to look for a selected item, thus severely straining the patience of the customer. The delivery time between classic sales and the logistics model described above is also faster with dropshipping. It can be concluded that dropshipping is the best solution for small entrepreneurs connected with e-commerce.
As your business grows, you should consider taking responsibility for shipping goods through your own company. This is because, running a larger store, you can afford to hire more employees responsible for shipping goods. You then also gain the confidence that you have the goods you offer. Dropshipping is therefore an opportunity to start a business in the e-commerce industry. For more on how e-commerce services work, please visit our website https://omida.eu/ecommerce/, to which we warmly refer you.
