In this blog, we will discuss the emerging Drop Shipping business opportunities.
“Drop Shipping is one area I have noticed a marked increase in the past months. I mean it really makes sense, you are increasing profits and at the same time reducing your risks (of inventory)”
– Israel Ellis, CEO of AdvancePro
Written by Israel Ellis, Co-author: Tanmay Perti
In this year of disruption, the capability of businesses to sink or swim is based on their ability to adapt. The buzzwords for this year are: agility and adaptability, which direct to the end-goal for all businesses – rapid change.
As John F. Kennedy once said, “Change is the law of life and those who look only to the past or present are certain to miss the future”, particularly apt in the present age of COVID.
Constant change and adaptation is a way of life for the development team at AdvancePro. We continue to challenge ourselves to meet the changing and growing needs of our users. Each year we strive to bring new, advanced and disruptive technology to our customers. Hence, business growth is the single-minded focus for our clients while we take care of everything, from the warehouse to the storefront.
The “Batch Drop Shipping” functionality is a great example of responding to the times. Drop Shipping, a commonly used parlance in ecommerce, is a great business model if you can execute. Drop Shipping allows you to purchase the items from a third-party supplier or manufacturer, who then packages and fulfills your customer orders without you taking delivery. The orders go direct to your customer.
The Drop Ship business model defies the conventional wisdom of increased risk equals increased rewards. It is rather the opposite if you can get this model right. Actually, this is a model of decreased risks and increased rewards. Sound counter-intuitive? That is because it is. However, many smart business owners are thinking this way. If you can turn 25%, 50%, or 100% of your business into a drop shipping business – why wouldn’t you.
The main benefits of the drop ship business is:
- Minimized inventory carrying costs related to freight, storage, warehousing, and fulfillment. Let alone over orders that end up gathering dust on your shelves.
- Huge savings when it comes to labor costs and holding costs.
- Operate with a lean-team with only a front – end focus
We can all agree to that most business people all over the world strive for two things; making more money and offsetting risks. This is the drop ship equation. Get this right and you could be whistling all the way to the bank.
Sound great, right? Where do I sign up? Okay – yes, this is very exciting, but, and there is always a but isn’t there? The biggest challenge to the dropship model comes down to the right technology to enable it at every step. The main technological requirements include:
This year AdvancePro released the full Drop Ship technology solution. A continuous technological support throughout the process of drop shipping that has the ability to simultaneously manage inventory, shipping and delivery to the end user.
Customers place their orders through the B2B web site and other more legacy practices. “Hello, this is your drop ship company, can I take your order?” you get the idea. Once the order is placed, either through the web, CRM, or APT inventory CPO; the orders are processed. At this point, the various vendors are managed and selected to fulfill based on availability. Orders are fulfilled and ready to ship to the door of your customers. Great Service! And the best part is you have not touched the inventory. Sounds Simple? Yes, in concept it is. Your shift is now a focus on marketing and front-end tech. But the reality is the back end is where you really need the technology flow, and this is where a strong technology partner comes in.
Learn more about the drop shipping business opportunity and how AdvancePro can help you. Book a meeting with our drop ship experts’ team. https://bit.ly/39T1840
REGISTER NOW for our exciting and informative webinar session – the “POWER” of AdvancePro and learn more about on how to grow your business, save money, increase profits with product experts – Israel Ellis and Darryl Reid. https://bit.ly/3o7hx8U
Date: 16 December 2020
Time: 12 PM (EST)