Internet sales fuel drop shipping
As internet sales have grown, so has the demand for the drop shipping model. This has allowed an endless number of internet sites selling a wide variety of products to crop up over the past 10 years.
Drop shipping occurs when retailers do not actually have the item they are selling in their possession. They make arrangements with the wholesaler or the manufacture to directly ship the item when an order is placed by their end consumer. In this relationship, the retailer is only concentrating on marketing the product and generating sales. The retailer no longer has to burden themselves with the entire supply chain process, including forecasting sales with the manufacturer, stocking inventory, and the final distribution of the finished goods.
In the case of an internet retailer; orders are received via their website, monies are collected, the order is then passed to the wholesale or manufacturer, orders are fulfilled, and the drop shipper invoices the retailer for the agreed upon price for the finished goods shipped. The internet retailer marks up the product from the wholesale price and makes a small margin to cover their overhead cost and profit.
Complex kitting allows Southern Fulfillment Services to manage drop shipping on your behalf.
Drop shipping vs. fulfillment
Fulfillment involves shipping finished products, whereas drop shipping involves complex kitting where Southern Fulfillment Services builds the finished product and ships to the buyer upon order completion. Depending on your storage situation, partnering with Southern Fulfillment Services can be a cost-saving alternative to paying rent on warehouse space.
Choosing the right drop shipper
The drop-shipper partner becomes an extension of the business and an integral part in satisfying their customers. A drop shipper needs to become a partner in your business to make it a successful relationship. If set up and executed correctly the drop ship model can be a successful venture for both the retailer and the drop shipper.
Learn more about how Southern Fulfillment Services can handle your drop shipping. Click here for a quote or call us at 772-226-3605 for more information.