It is a process which allows online businesses to facilitate sales and distribution without housing the products in their warehouse. Dropshipping on Shopify is a classic example where wholesalers or distributors use its platform to sell their products. The business relies on the seller to provide the inventory and avails the product upon demand. It reduces the paperwork involved in inventory management and makes order fulfilment faster and more effective.
Come up with a Dropship Process Plan
Consolidate the business idea, creating the sales process based on eCommerce dropshipping. Read and understand the rules of engagement and align your processes based on their timelines. If you decide to go with dropshipping on Shopify, go through their terms of engagement and create your sales model around their order fulfilment policies.
To strengthen your grasp of online selling, carry out other due diligence procedures such as research, logistics and inventory management. It also involves legal and infrastructural frameworks. Understand the consumption patterns, pricing and production process. The aim is to create a sustainable business model to maintain demand and supply levels.
Depending on the business abilities, you can outsource some processes. The aim is to get every activity in the process map ready before officially commissioning it. Logistics is one of the capital-intensive processes in which you can get help and work on getting a reliable alternative.
Select An Ecommerce Dropshipping Partner
After getting everything in order, open contractual engagement with a reliable e-commerce company. Aim at creating a partnership where you produce or avail the product, and the e-commerce company brings in the client. They will collect the funds on your behalf and deduct their commission before wiring the rest to you. Once everything is in order, you can get the money. However, the payment process takes a while since order fulfilment also involves customer satisfaction.
Consider the following when sourcing for a dropship partner.
- Proximity - settle on a fulfilment centre closer to your warehouse. You can deliver the product in time to allow shipping to the customer.
- Good returns - the commission given to the eCommerce company must be competitive. It not only gives in more money to the seller but also contributes to a lower selling price. Sellers cost their products, expecting a certain figure in return. If the eCommerce company charges a lower percentage as commission, the eventual selling price will be low.
- Reliable customer support - an eCommerce company has many sellers delivering their products. Efficient customer service facilitates a smooth order fulfilment process. Seller training, self-service and an easy-to-use platform make the process easier, saving time and resources when handling order fulfilment.
Executing Order Fulfilment
Since the eCommerce company does not have a warehouse to store the product, observe delivery timelines to avoid order misplacement. If possible, start the order fulfilment paperwork on the system, giving ample time to process your request. Dropshipping on Shopify or any other eCommerce platform recommends a 24 hours delivery timeline. If you deliver it in time, your ratings improve, which can earn you more points in seller ranking.
If you get the process right, you can scale up operations in no time. The trick is understanding the eCommerce dropship process create a business model around it. You benefit from economies of scale if you have more products on the e-shop. It gets better if the eCommerce company handles goods and services from all sectors.