As long as you run a retail business, you need to care about your shipping, accounting for 30–40% of your inventory expenses and effort. In recent years, some solutions have been figured out to optimize your shipping process and drop shipping is one you should consider. This shipping method can help every online retailer increase sales and profits without any changes in your Magento ERP strategy.
What is drop shipping?
Drop shipping is a retail fulfillment method of Magento ERP systems. As for drop shipping, the retailer does not keep goods in stock; all items are bought from suppliers and shipped directly from suppliers to customers. By this way, retailers can keep the retail margins as their profit.
Now you’ve got what drop shipping is, it’s time to find out how it can help.
Benefits of drop shipping
Less capital requirement
With drop shipping, you do not have to spend thousands of dollars on setting up your Magento ERP. Moreover, you can save money on shipping costs such as buying packaging materials, shipping labels, and hiring staff for packaging.
A wider selection of products
You do not have to pre-sale all of the items you sell so you can have a wider product selection to offer your customers.
Lower risks for your business
Every product you sell contains risks on both money and time so it will be great if you so not have to buy items that do not sell. Now you can get this benefit by using drop shipping in your ERP for Magento.
Because it can reduce business risks, it is more necessary for SMEs. There is no difficulty in using drop shipping, more tasks can be achieved in less time:
- It is easy to manage and pay for a warehouse.
- Suppliers are in charge of packaging and shipping your orders.
- You can do tracking inventory to find out accounting reasons.
- Returns and inbound shipments can be handled effortlessly.
- You are able to continually order products and manage stock level.
You do not need to worry about fulfillment or running a warehouse if you are on business far away or on holiday because you can run a drop shipping business anywhere. Keep your laptop connected and products can be instantly shipped to your customers.
Highly scalable system
As you do not need to manually fulfill each criterion, it is very easy to scale a drop shipping business. All drop shipping emails are kept so you can review them every time you want.
To sum up, drop shipping is a necessary plugin to support your Magento ERP system. If you have not had drop shipping yet, it’s high time to consider this benefit.
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