Dropshipping has become a popular business model for entrepreneurs in the world of ecommerce. With dropship fulfilment services, businesses can offer an extensive range of products without the need to invest in stock management or handling shipping themselves. Whilst dropshipping can be a low-risk venture, managing the logistics effectively is critical for success. If you’re considering dropshipping as a logistics solution for your business, it is important gain a good understanding of the process to ensure that your customers receive their orders quickly and accurately.
What is Dropshipping vs Fulfilment?
Great question! Let’s take a look:
What is dropshipping?
The retailer doesn’t keep any products in stock. Instead, when a customer places an order, the retailer purchases the item from a third-party supplier (e.g. AliExpress) who ships the product directly to the customer. This eliminates the requirement of storing goods in a warehouse.
What is fulfilment?
Fulfilment:
- In the traditional sense, businesses manage their stock and shipping. This typically requires warehousing, order picking, packing and shipping. Dropshipping logistics differ in that the supplier handles all of this.
Dropshipping vs fulfilment
| Dropshipping | Fulfilment |
Costs | Dropshipping usually has a lower cost upfront because you don’t need invest in stock or warehousing. However, profit margins might be smaller and individual product costs could be higher. | Fulfilment requires upfront costs in storing goods, warehousing and shipping. However, per units’ cost might be lower, and businesses often have more control over business speeds and costs. |
Eco Friendliness | Dropshipping is less eco friendly due to the shipping distances between third parties to customers. | Fulfilment can be more eco friendly is handled correctly. Centralised warehousing and optimised shipping routes can help reduce waste and carbon emissions. |
Ease of implementation | Dropshipping is easier to implement. You can start selling with minimal investment. | Fulfilment is more complex than dropshipping. It involves managing stock, warehousing and logistics. However, it does give more control over business operations such as quality control and delivery times. |
Understanding the differences between these two models can help you to decide whether to go down the traditional or dropshipping route depending on your needs. Both options have their pros and cons so choose carefully.
How to Fulfil Dropship Orders
Integrate with E-commerce Platforms
Ensure your dropship logistics are streamlined by using an ecommerce platform such as Shopify, WooCommerce and Bigcommerce. These platforms can be integrated with your shopping suppliers and help automate order processing and enable you to manage orders from a single dashboard.
Track Shipments and Get Updates
Keeping customers happy is part of business. Using tracking tools provided by your suppliers to keep your customers updated on their order status. By providing tracking in real time, you can reduce customer anxiety and improve customer experience.
How Lesters Logistics Can Support Your Business with Dropship Fulfilment Services
At Lesters Logistics, we understand how dropshipping logistics and can help streamline your order fulfillment process. While we don’t provide dropshipping directly, our fulfilment services are designed to integrate with a variety of dropshipping models. This allows businesses to improve their shipping and delivery. We can help you manage your stock, ensure timely deliveries, and provide the best logistics solutions, all while maintaining a high level of happy customers.
Whether you’re just starting a dropshipping business or looking to improve your logistics, Lesters can offer you expert advice and bespoke solutions that will make fulfilling dropship orders a breeze.
