Thanks to the robust inventory management software built into AcctVantage, many of our customers offer drop-shipping to their customers. But those who don’t often find the term a bit confusing, so we put together this quick-glimpse at drop-shipping…
What is Drop Shipping?
Drop shipping is a retail method in which you partner with a wholesale supplier that stocks its own inventory (instead of maintaining your own stock). You receive, process, and then transfer customer orders and shipment details to the drop-ship partner, who in turn “drops” the goods directly to your customer. The biggest benefit of drop shipping is you don’t have to worry about fulfillment or inventory issues.
Most customers won’t realize you’re drop-shipping if your partner uses private label shipping (lets you ship from wholesaler to customer with a return address and invoice customized to your business identity).
The Benefits of Drop Shipping
1. Minimal Investment: Drop shipping makes selling online as simple as it can get. You don’t need to invest in inventory systems, while you are able to market potentially thousands of items to customers. THAT SAID, we find that most companies who offer drop shipping ALSO carry additional lines of in-stock items which they do manage inventory for.
2. It’s Efficient: Whether online or retail, inventory takes a lot of work. Drop-shipping is like outsourcing fulfillment in a sense. It’s incredibly convenient and frees up your time to concentrate on growing a business.
3. Mobility: Businesses who manage a 100% drop-ship operation can move and pivot freely without having to worry about transferring a warehouse worth of material and people!
4. Proven Model: This method is so well established and proven that today, most of the United States’ largest retailers operate mega-drop-shipping systems.