Drop shipping is used by many retailers as a great way increase sales. Drop shipping is widely known for reducing inventory holding costs and in some cases reducing the cost for last mile deliveries. Over the years the team have worked with both manufacturers and drop shippers to reduce the friction when dealing with online drop ship sales. Listed below we have a number of tips to help improve efficiency, we believe that automation is the key to strengthening the relationship between wholesaler and drop shippers.
The team have also listed some areas to be careful of when considering drop shipping. Please let our team know if we can help you with vendor drop shipping feeds to your website. Developers can also help to integrate XML feeds utilizing the DSYNC XML connector
Tip Number 1 Shopping Cart Selection:
Selecting the right shopping cart can make a large difference with how you manage your time with updating content, products and dealing with the customer transaction. DSYNC have worked with many drop shippers over the years and see a common trend for drop ship shopping carts built on WordPress Woocommerce and Magento platforms, Shopify and Bigcommerce.
Tip Number 2 Automation:
Suppliers will regularly provide you with different product prices, currency movements, quantity updates and even new dispatch locations. Suppliers will generally provide a CSV file, an XML file or some type of data feed for your website. Smart drop shippers will automate this process to provide a level of smart inventory levels. DSYNC specialize in helping drop shippers update inventory from their suppliers automatically. We are currently running a drop ship promotion for common drop shipper websites ranging from WordPress, Woocommerce, Magento, Shopify, Bigcommerce and a few more.
Our team is currently running a promotion for drop ship inventory feeds . Contact – Drop Ship Feeds Promotion
Tip Number 3 Automate Shipping/ tracking number:
Communicating the last mile aspect of your drop ship transaction is very valuable, we recommend automating the tracking number information from your suppliers logistics company via your website.
“DSYNC provides a great automation tool for drop shippers as we can automate vendor inventory feeds directly into common shopping carts” noted Martin Novak
Pitfalls of drop shipping:
Drop shipping is a great way to reduce inventory costs and in many cases reduce the last mile costs. Some pitfalls may include suppliers charging a higher cost for shipping, slow handling times and reduced quality control.
High Shipping Costs
Be prepared to research into your suppliers shipping costs in some cases suppliers place a higher margin on the shipping to subsidize the low product margin. Be extra careful if you are drop shipping from an international supplier as the international costs may be more expensive, incur duty’s and taxes and be considerably slower. When investigating drop ship suppliers be sure to ask the supplier who the courier or transportation provider is. Be sure to evaluate if the courier is reliable, is air freight or overnight and has reliable tracking information.
Slow Handling Times
Be prepared for the loss of control, when running your own business there is always a sense of urgency, however your supplier may be a large manufacturer with slow or outdated business processes.
Reduced Quality Control
Many retailers love to put the finishing touches on the product and ensure the item is perfect before it is seal up and sent to the customer. Unfortunately with drop shipping you rely on the supplier to provide the product in perfect order.
DSYNC is all about connecting systems together simultaniously:
Connecting Shopify to Magento
Connecting Magento to Salesforce
Connecting XML to Magento
Connecting Bigcommerce to Netsuite
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