Drop Shipping

 

The method of order fulfillment where a merchant does not store or ship the product they sell, and the entire product supply chain is managed by the manufacturer, is known as drop-shipping. The merchant forwards the order received from the customer to the manufacturer, who manages the delivery directly from their warehouse to the customer. This is a useful method of order fulfillment; drop-shipping allows retailers to manage multitudes of suppliers and guarantees a standardized customer experience.

Online Sellers

ShipMax ensures that your brand reputation is maintained, as we will only connect you to verified and reliable drop-shipping suppliers. Managing delivery to your customers via these suppliers is our responsibility, so we will act as the intermediary between you and the drop-ship supplier.

Our drop-shipping solution allows brands to ship their products directly to customers with customized packaging, while also being assured of retail compliance. The growth of marketplaces with the intent to cater to diversified customer needs without having to maintain and invest in inventory has made drop-shipping a crucial element of retailers’ success strategies.

Brand Owners

ShipMax can manage your drop-shipping program by connecting you to digital marketing specialists and online sellers who can help you distribute your brand through a huge range of channels.

Benefits of Drop Shipping

Low Starting Costs

One of the main attractions of drop shipping is that a business doesn’t need to invest in inventory and delivery management, nor do they have to hire experts to manage this. Thus, a retailer only has to focus on making sales, while the rest is done by the manufacturer.

Minimal Overhead

Drop shipping minimizes overhead, as no space is needed for inventory management. This benefit is particularly important for start-ups operating on limited capital.

No Inventory to Hold

Since businesses opting for drop shipping do not have to manage their inventory, managing, tracking, and coordinating inventory doesn’t have to be their concern, which can free up significant time and manpower.

Very Little Effort Is Required

Drop shipping not only eliminates the need to have an inventory management/storage system but also cuts out the need to track and monitor package delivery. This allows for greater flexibility to the business and its workforce, as everything can be managed remotely.

Other Benefits of Drop Shipping:

  • Control and track your supply chain. To improve your customers’ shopping experience, it is best to maintain open and direct communication with your supplier.
  • Increase your product offerings. Be receptive to customer needs and be quick to cater to them through your product line.
  • Test new products. Do pilot runs of new products to gauge customer interest before making large investments in them.
  • Introduce categories in bulk. By bulk uploading information and content to spreadsheets, you can beat the competition by releasing new products quickly.
  • Instantaneous transfer of products among vendors. Through Fulfillment Relay, you can sell products from a variety of vendors to your customers.
  • Add more vendors. Develop an online portal to automate onboarding and sharing of your KPIs among your suppliers.
  • Track Supplier Performance. Monitor your suppliers’ order accuracy, speed of delivery, and compliance with standards.

Deliver a professional fulfillment experience:

Reliable

Through a central portal, monitor performance and track your suppliers’ compliance with Service Level Agreements.

Consistent

Ensure that your supplier provides a smooth and uniform delivery service to your end customers.

Transparent

Maintain a real-time connection with customers, keeping them up-to-date on product information, delivery details, and more.

Maximize Cash Flow & Reduce Expenses

Minimize the expenses being incurred on inventory management; instead, invest in initiatives that actually grow your business!

Free up capital

Use the drop shipping method to save costs that would have been incurred as a result of inventory storage and management.

Invest strategically

Study market trends and customer purchasing patterns; confidently make purchases in bulk.

Eliminate markdowns

Don’t let your margins be compromised. No inventory being held means no markdowns to overcome.

Optimize order routing

Automatically manage orders by accounting for inventory availability, delivery destination, custom business rules, and delivery location.

Intelligent packaging logic

Pack orders in real-time to optimize resources based on packaging availability.

Address verification

To prevent deliveries to spurious addresses or shipping delays, develop a mechanism for automatic verification and correction of delivery addresses.

An effective drop shipping solution can help eliminate your woes and increase your business reputation by complying with local branding standards, adhering to retail partner guidelines and SLAs, and accessing a global shipping agent network—allowing you to ship thousands of orders in a day.

The key to an effective drop-shipping solution is speed, confidentiality, and consistency.

Comply with Service Level Agreements

Every retailer has its own set of requirements for its product, from custom packaging to specific shipping labels. We will work with you to ensure that every order complies with retailer needs in every way.

Connectivity Choices

Making retail connections can be a lengthy, tedious process. With options to connect with your retail partners through API, spreadsheet uploads, and pre-built connectors, you can add channels rapidly and watch your sales grow exponentially.

Enable Global Fulfillment

With 150 shipping agent locations in the U.S., drop shipping from a location nearest to you will save on logistical costs. This diverse range of locations also allows you to shore up inventories near major customer markets to further optimize delivery and accessibility. This also gives you the option of choosing a multi-location solution over a single shipping location.

Brand Exposure & Integrity

While it allows for the generation of tremendous revenue, drop-shipping also offers brand exposure and awareness unlike any marketing or advertisement campaign can achieve. Furthermore, your brand’s integrity is of the utmost importance; through customized packaging, lists, and labels, we ensure that your brand is well represented throughout the shopper’s buying experience.