Views: 426 Author: Site Editor Publish Time: 2021-06-11 Origin: Site
With the development of business, dropshipping business has become a popular business model now. But there are some people who want to do cross-border dropshipping don’t know more about it. In this article, we will introduce for you the drop shipping fulfillment in order to let you further know it.
Definition of Dropshipping Model
In simple terms, dropshipping is a business model that allows e-commerce dropshipping sellers to sell goods without stocking their own inventory. The retailer does not need product inventory but submits customer order and shipping details to the supplier. In this way, the supplier can send goods directly to the end customer. The retailer earns the difference between the wholesale and retail prices or collects a certain percentage of commissions from the supplier according to the number of sales. This model not only reduces the retailer's costs, but also allows suppliers' resources to be more fully utilized, and achieve a win-win situation.
How Direct dropshipping Works?
Less capital: The biggest advantage of dropshipping is that the sellers don’t have to pay for the stock, which makes it startups if sellers have a tight budget. And the sellers don’t worry about paying for a product before the customer pay.
Order fulfillment: With drop shipping, the sellers are not responsible for sourcing, packaging and delivery of the goods. They just inform the dropshipping supplier to send goods to customer directly after they find the cooperated suppliers. Even they don’t worry about the additional costs incurred in the whole process. They only need to contact with customers and forward the request of customers to a third party supplier. It is a simple business model for sellers.
Transportation: Though the sellers don’t worry about the delivery of goods, but they still need to know it. After all, the delivery time will influence the order fulfillment. First of all, let us know transshipment and distribution. Transshipment and distribution may refer to the logistics process.
There are many logistics and freight forwarding companies that specialize in this business model. Because some large international logistics companies only have collection points in some large and medium cities across the country, if you want to sell and send things in other places, you need to find a local freight forwarder. The forwarder will help you transport the things to the big cities, and then help you send it to a major international logistics company.
If you do e-commerce dropshipping business, try to choose a freight forwarder with a better reputation, the discount and delivery time will be guaranteed. Another type of transshipment and distribution may refer to foreign warehousing. That is to say, your large quantities of goods are firstly shipped to a foreign warehouse. For example, after the dropshipping buyer purchases the goods on your website, you directly place the order, and the warehouse in the UK will help you prepare the goods and send it out. The advantage is that it can shorten the delivery time, and the disadvantage is that the storage cost is high. So, the sellers need to consult with suppliers to make the transportation and order complete smoothly.