Drop shipping: Procedure: Benefits: QnA

Inventory management is one of the most significant challenging factors for retailers, so to make them free from inventory management, e-commerce platforms introduce drop shipping. It allows a seller to sell products without having them in their inventory. With the e-commerce platform, you can reach a worldwide audience and make good sales and profits.

If you want to know more about drop shipping, then read the full article.

Drop shipping

In e-commerce, drop shipping is an option for completing orders. You can sell products online without worrying about shipping or keeping an inventory. A dealer is in charge of the inventory and shipping processes; on your behalf, he will prepare the products and deliver them to your client.

Here is the procedure for the drop shipping below.

Procedure for Drop Shipping

• Pick an e-commerce platform.
• Register your store on the e-commerce platform of your choice.
• Make a list of everything you want to sell.
• Include a product description and an attractive price.
• Develop strategies to boost sales.
• The order will be routed to your supplier automatically when a buyer arrives.
• The product will be prepared by the supplier and shipped directly to your customer.

What is the SOR and Supplier Relationship?

SOR

SOR is the abbreviation of the seller of record. SOR is the person who started his store on e-commerce platforms and managed all the records of the revenue and list products in his store with good price. He is responsible for any issue that customers have with the product. SOR will listen and resolve the issues with the customers related to products.

Supplier

Supplier is the whole seller who buys products in bulk and then sells to retailers or provides drop shipping services. The supplier is the one who has the inventory and manages all the products and ships them to SOR’s customers. 

Relationship

SOR and supplier both works together in the drop shipping process. SOR manages the e-commerce store, and the supplier supplies the products to the SOR’s customers. More than average, suppliers aren’t as honest as they claim, so to protect yourself, always do drop shipping agreement contract with the supplier.

QnA

Here are some of the common questions asked by newcomers.

Who is the Best Supplier for your Business?

Drop Shipping is a business that is only practical with the partnership of a supplier. You and your business depend on the supplier as he manages the quality of the product and timely shipping. So you have to choose the best supplier who has the best quality products at low cost and can timely deliver products to your customers. 

The best supplier has a wide variety of products, fair pricing with a pricing plan, excellent customer service and can have customized packaging options. It is much better if the supplier’s location is nearby your location so you can physically check what you are shipping for your customers.

What are the benefits of drop shipping?

Drop shipping is a business that requires less space than you think. The drop shipping business can be started anywhere; to begin your drop shipping company, you need a computer and internet access that’s it.

Drop shipping’s intuitive nature is one of its most significant advantages. You only need to set up and start your store; after that, it will automatically process orders and forward them to the supplier, who will then deliver the products to your customers.

Since you are not paying for the products, you can sell low-priced products or even list the highest-priced product in your store. You are free to list as many or as few products as you like; Physical storage is unrestricted in any way.

Is it necessary to register your business to start drop shipping?

Yes, it is necessary to register your business to start drop shipping. Once you make sales, you must register your business as a legal entity because most payment providers need your certificates to provide you with their services.

What are the drawbacks of drop shipping?

As e-commerce is a big platform, so many worldwide sellers are selling the same products at different prices; just because the competition is so high, you have to research an excellent drop shipping supplier with good quality products at low rates. You are not managing the inventory, so quality and timely shipping are outside your control. Still, if your customer has any problem with the product, you have to solve the issue yourself.