DROPSHIPPING FOR E-STORES

When considering setting up an online store and selling with shipping, the first issue that needs to be addressed is getting goods to customers in the fastest and most convenient way. This is a key factor that has a huge impact on achieving successful sales and positive brand perception by customers.

Currently, creating an online store, sending goods to customers around the world is one of the most attractive types of business. There are dozens of systems for stores that allow you to create and configure a fully functional online store. In addition, if you understand a little about positioning or use Amazon, Allegro and other sites, you can quickly reach a good sales volume. Whichever route is chosen, the store will start placing orders. What to do then? What is the way to proceed?

Organizing your own warehouse is still the most common choice. All you need is a place to store the goods, some free time to pack and ship them. But this will be enough only at the initial stage of the online store. With a constant increase in orders, the number and complexity of warehouse-related operations can take up all your free time. The next problem is to find ways to delegate warehouse-related tasks to someone else. You can build (buy) your own warehouse, hire people to work, etc. But at the beginning of the business, this will turn out to be a time-consuming and unprofitable process.

Fortunately, there are many other possibilities. These alternatives, which are described below, will help you get through the most difficult period of business development without the need for excessive financial investments.

Like any shipping solution, dropshipping has its advantages and disadvantages. The main advantages of such a scheme include:

• minimizing the costs and investments associated with the organization of commercial activities, since funds are not required for the purchase of goods in advance;
• the product is bought only with a guarantee that it will be sold (because it has already been ordered by the buyer);
• getting rid of the need to perform the work of the warehouse, as it is carried out by the supplier (i.e. the manufacturer’s warehouse);
• reduction of order lead time (products are shipped from the warehouse directly to the buyer, bypassing the seller / store).

On the downside, dropshipping requires a lot of confidence in the warehouse responsible for the shipments. As a seller, the online store does not control the process of order fulfillment and delivery to customers. It has little to no effect on when the goods are to be shipped, how they are packaged, etc.

When renting a warehouse, it becomes possible to store all purchased goods and perform all related tasks. This is beneficial because the store owner does not invest a huge amount in construction, but only pays rent. But for well-coordinated work, it is necessary to hire workers to the warehouse, train them, etc. In addition, all the processes with the supply of goods to the warehouse, their shipment, and the purchase of warehouse equipment will be handled by the store owner or a trained warehouse manager. But an important advantage will be the fact that the online store independently controls the product, its condition, stocks, dispatch of orders, etc. This, in turn, will affect the reputation and opinion of customers about the company’s work.

But there is a great alternative. Fulfillment is the lease of warehouse space with full service, i.e. the availability of the necessary warehouse personnel, ready-made solutions that facilitate the work of the warehouse, and sometimes even a set of courier services. The store owner only manages deliveries and commissions the fulfillment of orders. The main advantages of the service:

• Provides full warehouse service without the need to invest in a warehouse or hire people;
• control over the quality of the warehouse (packaging and shipment of parcels) comparable to managing your own warehouse without the need to have special knowledge in this area;
• warehouses providing fulfillment services are equipped with all the tools that contribute to the speed and quality of work (warehouse management systems, code readers, warehouse equipment, etc.);
• the start of work does not require additional financial costs, and the cost of the service is scaled based on the growth in store sales.

Fulfillment usually means that the optimization of the warehouse organization is higher than what is achievable for self-management. The store owner buys the required service, and it is provided by people who have more experience than the newcomer. Thanks to this, the owner can skip the training phase and instead use the knowledge and experience of the collaborating company. But it is worth remembering that such a service does not relieve the store manager of the responsibility to manage the supply situation and monitor the turnover of stocks.

Our Expension Fulfillment team is made up of highly experienced professionals. Turning to us, you can be sure that you have found the best solution for your business.