1. HOW TO DO ECOMMERCE DROP SHIPPING—THE BEGINNER’S GUIDE

2. INTRODUCTION Drop shipping is a common retail fulfilment method where the manufacturer or distributor directly ship products to customers when an order is placed via an ecommerce website. In this case, retailers don’t stock products or handle logistics. ecommerce website It can be beneficial to e-commerce retailers because it eliminates both investments and risks in inventory. On the other side, it also causes extra complexity in terms of delivery speed and coordination among the three-parties–retailers, customers and manufactures. In this post, we included some basic elements of drop shipping for you to consider.

3. WHY DROP SHIPPING Drop shipping reduces risks that online retailers, especially the new ones normally face. Less upfront investment requires less capital needed. Because retailers don’t need to stock products, they don’t have to pay for warehouse and related operation costs. In this way, online retailers can respond even faster to the ever-changing consumer needs. It’s easier to offer a wider product selections without paying for inventory changes.

4. THE DISADVANTAGES OF DROP SHIPPING The challenges are usually paired with the convenience. Firstly, products are shipped from the third party, e-commerce businesses often have very limited control of the stock level of a certain product, delivery timeframes and shipment tracking. This happens in online marketing, especially when retailers deal with multiple manufactures who don’t have real-time inventory management system.

5. HOW TO TAKE ADVANTAGE OF DROP SHIPPING? To overcome the down side of the complexities mentioned above, e-commerce businesses should embrace technologies in place. A must-have is an API that facilitates real-time data transmission in a transparent manner between e-commerce retailers and manufactures.

6. CONCLUSION As e-commerce continuously grows and the need to reduce supply chain complexity increases, drop shipping will be seen as a way to speed the delivery process and cut out middlemen cost. With the right technology systems, such APIs that allows immediate data transmission and real-time updates, drop shipping will be a winning method for e-commerce businesses and distributors/ manufacturers.

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