ROLE OF DROPSHIPPING IN BOOSTING YOUR E-COMMERCE BUSINESS
Dropshipping is one of the most characterized strategies that usually fits in supply chain management. It’s the Out-With-The-Old, In-With-The-New technique in which your business doesn’t have to open a brick and mortar store. You buy the products from a wholesaler when your online storefront brings in the customer.
Millions of business owners swarm to this hands-off process of dropshipping because it requires less money and hassle to start. Sustaining a business with dropshipping is a breeze- Thanks to its rewarding and simple trading model! You don’t even need a lot of capital or high-level investments. With dropshipping and Integration Management Software, you are the boss of your own ecommerce business. You are independent to make your own decisions and take your business to the path of growth. Let’s see how it works.
The Process of Dropshipping
Dropshipping seems very straightforward. Here’s how it works.
● First, the retailer’s website displays the product on its ecommerce website (Amazon,
eBay).
● Second, the website makes sure that the product reaches the target audience.
● Third, the customer browses the website and places the order.
● Then, the software you are using will inform the vendor/supplier regarding the
purchase.
● The dropshipping partner prepares the order and ships it directly to the customer.
Why Should Retailers Opt for Dropshipping
Here are some advantages of dropshipping that you as a retailer can have.
● It helps in providing a consistent experience to the customer. As the delivery partner is the last point of contact with your business, it can impact the customer. Customers tend to remember it because it is the final step in the process of order fulfillment.
● To avoid competition from other retailers selling the same products, the dropshipping partner provides stock photos and descriptions. Also, they control the price by using the Minimum Advertised Pricing (MAP).
The Process of Order Fulfilment for Dropshipping
The process starts as soon as the customer places an order. The process ends after the delivery of the final product to the customer. Moreover, the process is about finding and using the most efficient way of delivering the product. This can be achieved by either routing orders according to the location or by the product’s availability.
The Benefits of Dropshipping
It’s easy to take your business to another level with dropshipping.
● The significant advantage of dropshipping is that it saves the cost of buying inventory and renting the warehouse. For example, if a retailer does not use the dropshipping model, it will incur charges to purchase merchandise. In addition, it will also have to bear the cost of storing and managing inventory.
● You do not need much investment to start a dropshipping business. Also, you can start your business with zero inventory.
● You can update the list of your inventory without the need for physical inventory. The process of updating the list of the stock is inexpensive and fast.
● Drop shopping also provides the benefit of testing new products. You can quickly try new products without the risk of carrying a vast amount of inventory.
● The business of dropshipping is relatively easy to expand. Expanding will increase the supplier or the manufacturer’s workload, while the company has to order more products.
Although dropshipping has its perks, it has a lot of competition. However, the profits with this business style have peaked over whooping $4 billion.
Why Should B2B Businesses Prefer Multi-Channel Selling Software
The increasing use of the digital platform by customers to make purchases has given the retailers a great opportunity. The retailers can market their products to a large number of customers.
Also, it has given the customer the option to choose from several retailers. It also offers retailers the benefit of connecting with customers across all their favorite digital platforms. In addition, it helps in building a brand image. However, many new platforms are available for retailers to reach out to their customers, like:
● Newly emerged social media platforms
● Marketplaces like Amazon
● Hosted ecommerce platform like Shopify: The web server of the platform supports the retailer’s website. KartKonnect can connect you with suppliers across the globe. With the help of KartKonnect, you can browse across many distributors and select the items you wish to list on your website. Once the end customer buys the products, they will be delivered to the customer directly from these distributors like Ingram Micro, Synnex, Kroll Corp etc.
● Non-hosted ecommerce +platforms like Magento and WooCommerce: These platforms allow businesses to host, run, and support their website.
Importance of Inventory Management
SoftwareManaging multi-channel orders can be difficult. To make the process simpler, businesses are opting for the use of different Inventory Management Software. It helps in tracking inventory levels accurately. Moreover, the Management System also helps in providing improved customer service by managing stock-outs. In addition, it helps in forecasting the demand and controlling the inventory wastage. And the software helps in setting the dropshipping schedule, thereby helping in timely deliveries. Orders from different channels are displayed together for the convenience of the user. Hence, inventory management software saves time and helps in increasing the efficiency of the business. There are cloud-based software that is easy to use and does not require any special training. You can log in and use the software. Using cloud software means having 24*7 access to your business from anywhere in the world.
Takeaway
The dropshipping is the direct delivery of the products from the retailer to the customer via a dropshipping partner. The use of dropshipping has increased over the years because it links the retailer and the ecommerce website. The retailers can provide a consistent experience to their customers using dropshipping. Also, order fulfillment can be achieved efficiently by steering the demand or the location. There are numerous advantages of dropshipping. The most important one is the ability to start the business at zero inventory. Since many ecommerce websites use it, there lies a risk of competition. Using multi-channel platforms helps enterprises to associate with customers across their various platforms, thereby increasing sales. A good inventory management software boosts the business. It forecasts demand, controls wastage, manages inventory, and gives improved customer experience. If you are looking for a customized price and inventory management software, KartKonnect can help you with a cost-efficient Price and Inventory Management Software tailored to your business requirements. Now no more dead stock or the risk of overselling. Contact us at Kartkonnect today to automate inventory tracking for increased cash flow. Enable the seller to ship the product directly to the consumers using KartKonnect Distributor Management System.