Drop shipping business is relatively a different type of selling system used by many online retailers that do not have a physical storage facility to hold inventory. This is a product delivery method in which the seller accepts the payment for an order, but the customer directly receives the product from the supplier.
What is Drop shipping?
Drop shipping is a simple concept of selling a product. When an order is placed by a customer, the retailer passes on the customers order information to the wholesaler or supplier who then packages and ship the product to the customer. This method minimizes the risk for you, as a retailer, because you don't need to purchase the product until it is sold. Suppliers take care of the warehousing, packing, and shipping products, saving you a great deal of money.
How does it work?
Drop shipping method is acted by the supplier, retailer and the consumer. In the traditional business design, the retailers will order products from the supplier or manufacturer and is obliged to stock products in the warehouse. The retailer then has the function to promote and advertise the product and when another retailer or an end user orders from it, it gets its supply from its own inventory. In drop shipping the supplier has the function to create the product and store it for itself. The retailer does not have to get the product from the supplier or the manufacturer but is focused only in the marketing strategy and advertising of the product.
Here are the steps involved in drop shipping:
If you are a retailer with no upfront cost in turn allows you make more profit. With this method there is no need to have an in-house order management and inventory management system, nor you need to pay for the inventory upfront- if the product doesn't sell, you never have to buy it. Also, no packing, labeling and shipping cost applied, not there is a need to built a shipping management system. You purchase products at wholesale price and set your own retail price.
Whether you looking to expand your retail business over the internet or just looking for supplemental income, dropshipping business can be for you.
If you are conducting a small to medium size online retail store, you are all too familiar with today's challenges that includes rigid economy, rapid change in shopping behaviour, more competition and higher cost. Managing an ecommerce store is no easy task and coping with all the demands that includes your customer, inventory, orders, shipping, pricing- can be a challenge. Utilizing the appropriate software to help manage the loopholes between the front-end customers experience and back-end operations is essential for a stable growth.
Did you know that you can carry your online retail store operations in a much smarter and simpler way with just an "internet connection?" Cloud-based order processing software is here and it can transform your business to a better place by handling your back-end operations seamlessly. This will include the order processing, inventory management, fulfillment and shipping. The ultimate order processing software ensures online retailers to generate a swift path to improved back-end efficiencies, recognized revenue, higher profits and customer satisfaction. A good software needs to track the entire order fulfillment process and eliminate manual errors to establish a smooth flow from orders placed to approved orders. A multi-channel order management system takes all this into account across various shopping channels.
What are the main benefits of order processing software?
Accurate inventory control
An order processing software will help you adapt a near real-time to inventory fluctuations in your web store and all your selling channels. It ensures you to enhance your inventory flow, allowing you to eliminate the slow process of manually updating your inventory in your web store and other selling channels.
Efficient order fulfillment
Streamlines your order fulfillment process, reduce errors by automatically routing orders to leading carriers for shipping.
Seamless multi-channel selling
A multi-channel order processing system makes selling easy across various channels in turn increase customer satisfaction. With a real-time analysis, you can know which product is sold on what channel with your inventory levels updated automatically.
Allows easy integration of marketing efforts across all your sales channels and customer profiles. This will enable you to divide your customer base and create targeted customer lists for marketing efforts.
Best customer service
Through an order processing software you can handle customer queries in timely manner that will help you create a long-term customer relationship. One poor customer experience can produce negative reviews and posts for your web store online. Delivering an excellent customer service ensures customer satisfaction and retention and ultimately repeat business through loyalty.
If your goal is to operate an efficient web store, provide the ideal customer experience and grow overall revenue, cloud based order management may be just what you need.
Cloud-based software is need of the hour; many growing retailers find it difficult to juggle between many spreadsheets and systems to manage their data related to inventory and order processes. The amount of time spent on administration work can prove to be very expensive for startup retailers, resulting in wastage of time and other key resources. Software-as-a-service is proving to be cheap, and has helped to transform how retailers manage their back-end functions.
Top Reasons to adopt cloud-based software for your business
Low cost: Cloud-based applications don't require the deployment of a large infrastructure at the client's location, which eliminates and reduces the upfront costs or deploying resources on a large scale. Everything is accessible from a web browser; your data is extremely safe.
Ease of Integration: Cloud software can seamlessly integrate with multiple channels with the help of API, third party apps opens up plethora of options to streamline their business processes. Order and inventory management system like Orderhive can help growing retailers to manage their multi-channel selling and save their resources to great extent.
Allot Multi-user logins: You can create multi-logins for your team members easily, authorize and restrict them to only use certain features of the software, which helps in delegating the tasks effortlessly.
Access your data 24*7: SaaS applications allow you to access your data, all you need is an internet connection to get you going. Users can easily access the software on-the-go.
Setup takes only few minutes: Cloud software’s setup can help the user to be up and running with the tool within no time, with system like Orderhive, you can import your data, and start managing your inventory and orders quickly. With extensive instructions and guides, it makes even easier for users to get comfortable with the tool.
There are many more reasons as to why retailers should opt for a cloud-software to manage their orders and inventory, especially small retailers to keep pace with growing competition have to constantly come up with new tools which help them to work more efficiently, it becomes difficult for startups to invest in IT infrastructure. The biggest pain point for retailers, manufacturers and brands at large is to manage inventory, if retailers want to sell on different channels, they need to be sure of their system as to how it will be updated in real-time to reduce stock-outs and fulfillment issues.
Cloud-software allows retailers to keep a track of inventory in real-time, thus they can easily eliminate dead stock and stock-outs hassle. Creating and processing orders is also one area where the retailers has to devote time and resources to minimize errors, for efficient order management, cloud software will allow syncing orders and also streamline shipping management process. Major order and inventory management system have integrated their tool with shipping carriers which helps in creating automated shipping labels, tracking shipment route in real-time and many more functions.
Orderhive, the ultimate cloud-based order and inventory management system provides access of leading third party apps to retailers which will help their business grow at a faster pace.
Conventional way of managing shipping activities often lack real-time tracking and information. In this 21st century that we exist, the advancement of technology has provided superior option for online retailers to manage and improve their shipping process more efficiently. To gain a competitive advantage in the rising market, it is important for every retailer to utilize shipping management software based on the company’s specific needs. Shipping software will streamline your order process and deliver products to your customer as per the stipulated time. This feature will enhance your productivity and competitiveness through systematic planning and management of shipping activities.
There is no need to hire a customer service experts or spend the time yourself to deliver shipment notification anymore as Orderhive, a multi-channel inventory and order management system now integrates with shipping software, Aftership. Aftership aids online retailers by tracking their problems and reports immediately to them as well as their customers.
Key features of Orderhive’s Aftership integration:
ü Track all your shipments from a single integrated platform
ü Sends notification to customer when in transit, out for delivery, delivered
ü Easily find shipments are delivered in time through real-time and reduce enquiries about order status.
ü With real-time tracking in place, customer inquiries regarding shipment are handled more quickly and efficiently.
One of biggest cost and challenge for many online retailers is shipping process. Aftership shipping software will help them get orders out to their customers in a very cost-effective and timely manner that is crucial for success. Aftership supports more than 100 carriers worldwide, including UPS, FedEx, DHL, Aramex, TNT and many more.
No matter how small or large your retail store may be, Aftership shipping software can fit into your overall plan. This means that instead of taking the pain to manually keep track of shipping process, you will be able to view the overall process in a single screen. Detailed reports and analysis can be viewed in real-time, making it easy to improve the entire shipping lifecycle.
Aftership shipping software solution will give your ample of free time to adjust and manage other aspects of your business. Not only this, you will also reduce cost and errors since the software works to minimize any shipment issue that may arise. Moreover, since you will able to view the most accurate data in real-time you will have the ability to spot issues that may arise and avoid them. Aftership is designed to make your shipping management the best it can be. Do not make the mistake of ignoring what they can do for you.
Simple, yet powerful