The Differences between Self-fulfillment, Third-party Logistics and Dropshipping

The order is finished after you have established your dropshipping shopify stores and obtained your first customer. The completion of the order does not play a role in the sales process, but it is very important to maintain the loyalty of consumers. Some small factors will affect the consumption experience when completing the order, such as late delivery time or unpleasant communication. The e-commerce orders generally includes the following contents:

1.Communicating with the customer about the order

2.Managing the dropshipping winning products in a warehouse

3.Handling the order itself

4.Packaging the product

5.Shipping it off to the customer

 

Although it sounds a bit troublesome, you don't need to do all the services yourself, because online top 10 dropshipping stores will outsource the whole process. You can keep the order-making procedure on the network, or choose other service companies to share the whole process. There are mainly the following choices:

 

1.Self-fulfillment

2.Third-party logistics

3.Dropshipping

 

Self-fulfillment

The self-fulfillment model works just like its name, and all the work is done by yourself, including oberlo products list, transportation, storage, packaging and maintenance of customer relations. This model generally requires your company to have a certain storage space.

 

The advantage of this model is that you can control your sales process. Some smaller companies like to use this business model because it can save money in the beginning. But in the long run, this sales model will eventually make you pay more money. As time goes by, you may receive more and more orders, and the result of the self fulfillment model is relatively inefficient. It will cause certain losses if consumers can not get the popular products in time. In addition, there are still many resources to manage..

 

 

Third-party Logistics

When you cooperate with the order fulfillment company to handle some packaging and transportation work, your company needs to buy a certain number of products on oberlo and store them in the warehouse. This warehouse is owned by the third-party logistics company and you only need to pay the service fee. When consumers buy these products, the logistics company will directly package and deliver the oberlo best selling products to them.

 

The advantage of the third-party logistics is marketing. This business model allows the company to spare a lot of time for marketing，sales and web design. 

 

The disadvantage of third-party logistics is that you can't guarantee the quality of packaging and the time spent in logistics. But if you can find a reputable logistics partner, you may not worry about these problems.

 

 

Dropshipping

Dropshipping mode generally focuses on customers' acquisition, leaving warehousing and transportation to suppliers. Compared with third-party logistics, fast shipping dropshipping does not need to buy inventory. Suppliers will produce a commodity and warehouse it. When they see someone buy it on your website, they will deliver it.

 

This mode is very tolerant to fledgling entrepreneurs, because it does not cost a lot. Moreover, shopify dropshipping business will focus on business development and marketing, and your resources will not be reduced due to transportation and storage problems. How to choose suitable products and suppliers is the most important in this mode. If a product does not have many consumer markets, you can choose to close it.