June 26, 2015
Posted by Alicia Baumann

Logistics Automation: Drop Shipping

In business today, we strive for consistent cash flow, flexible hours and minimal stress. Essentially, we're looking for something that's nearly impossible.

Though nearly impossible, in the eCommerce world, achieving such a dream can become a reality thanks to the concept of drop shipping. Here are three strategic components to achieving this dream:

Step 1: Secure a customer base that continually orders online

Having a customer base that continually orders online means that a business will benefit from consistent cash flow. This is a result of the business offering products that meet a customer’s need in both value and in availability. 

This is where drop shipping savings on overhead cost come into play.

 

Drop shipping saves overhead costs by not stocking products until they are ordered, ensuring that extra money is never spent on obtaining products that won't sell. If a customer sees that an item offered by a business is out of stock or includes inaccurate delivery times, chances are they're going to lose interest.

Drop shipping relies heavily on technology that accurately determines the supplier’s inventory and shipping information. Customers who receive their items days after the expected delivery date are sure to take their business elsewhere for future purchases.

Supplier inventory technology and accurate shipping information supports a continuous customer base when it comes to drop shipping.

Step 2: Utilize automated software

Utilizing automated software will provide your platform with experience and efficiency, which will allow you to have more flexible hours and can help your eCommerce business thriveAutomated software provides comparisons for things like:

  • Delivery methods
  • Location
  • Dates
  • Product price points 

Step 3: Create partnerships

Creating reliable partnerships provides ease of mind when handling deliveries, resulting in a significantly less stressful work environment. 

Building relationships with multiple suppliers, who each have their own unique requirements and preferred practices is essential with drop shipping. While one supplier bodes best with FedEx, another may be better off with UPS. This means that tracking packages, reaching customers and billing buyers can get quite complicated.

To make these working relationships work, drop shipping requires a third logistical component that takes all of the moving parts and turns them into one simplified process.

And yes, we're right back to talking about technology.

Being able to track all your shipments in one place as well as outsource them to different carriers based on price and shipping comparisons can all be done through automated technology.

Conclusion

To sum it up, drop shipping is essential to eCommerce success. By automating your operation, taking time to implement technology and continually evolving your eCommerce business, you can obtain consistent cash flow, flexible hours and minimal stress.

Don't know where to start? Contact the ShipHawk team today to take steps toward a more enhanced shipping strategy.

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