What is Drop Shipping?
Drop shipping is a fulfilment model that allows you to buy products individually from a wholesaler and ship them directly to your customer. Instead of purchasing a large amount of inventory, you simply partner with a drop shipping supplier and list their merchandise for sale. Then, once you receive an order you forward it to the supplier for fulfilment. The supplier will ship the product directly from their warehouse or a third party warehouse to your customer, and charge you only for the price of the shipped item.
So we’ve got what drop shipping is, why don’t we take a look some of the benefits?
Lower Capital Requirement: With drop shipping, you don’t need to invest thousands of dollars in inventory. Instead, you only purchase a product when you have an existing order to fill.
Wider Product Selection: When you don’t have to pre-purchase all the items you sell, you can offer a significantly larger number of products to your customers.
Reduced Risk: Without thousands invested in inventory, the risk involved with starting an online store is dramatically reduced. If things don’t work out, you aren’t stuck with thousands in inventory you have to sell at a loss.
Location Independence: Because you don’t have to worry about fulfilment or running a warehouse, it’s possible to run a drop shipping business from anywhere with a laptop and an internet connection.
Highly Scalable: Because you don’t need to manually fulfil each order, it’s relatively easy to scale a drop shipping business.
Drop shipping is steadily acquiring popularity in the UK: it’s a great way of minimising risk and cost – you don’t have to hold lots of stock – and offers convenience and practicality for you, the retailer.
Drop Ship Services at 3PL
Private Label Shipping
Here at 3PL we can include customised branded packing slips including your details such as the company name, logo and contact information. This is known as Private Label Shipping. We will ship your goods with a return address tailored to your preference.
Drop Ship Business Model
If you are a business that offers drop shipping options to sellers and are beginning to lose control over order management due to increases in order volume then outsourcing your drop ship operations to 3P Logistics could be the answer. Our drop shipping fulfilment service is tried and tested with some of the UK`s largest online retailers and allows them to take orders at will and without physical blockages.
If you are already selling through online marketplaces such as Amazon or Ebay, then why not plug into the many drop ship suppliers out there. 3P Logistics can ship the items directly to the highest bidder without you ever owning the goods directly!
Two of the biggest benefits of drop shipping with 3PL are the elimination of upfront inventory and a positive cash-flow cycle. Our drop shipping services will also help to eliminate the potential duplication of effort, as we will be doing all the picking, packing and shipping of the products ourselves. This will help to reduce total inventory management and shipping costs. These cost reductions for you, the retailer, can subsequently reduce the price for the consumer.
If you want to expand your product catalogue and increase sales then drop shipping is well worth a look. With a wholesaler fronting the stock and 3P Logistics doing the warehousing and order fulfilment what have you got to lose?
For more information on services we provide – visit ‘What We Do’.