One of the most common misconceptions we hear on a daily basis is that drop shipping and third-party order fulfillment are the same thing. While these two services might share some similarities they are very different, especially when it comes to who needs which service.
Keep reading to learn more about both!
What is Drop Shipping?
When you use a drop shipping business model, you don’t purchase the inventory until your customer places the order. The order then gets shipped from the manufacturer or drop shipping facility to the customer without you ever handling your inventory.
A drop shipper provides you with a catalog of products that they hold in stock for you to choose from. You decide which of their products you would like to offer on your website and they take care of the operations like inventory management, picking, packing, shipping, etc.
This is a business model that many people use if they don’t have a lot of start up funds or they don’t want to take on a lot of risk by purchasing inventory. One of the major drawbacks of this method though is that many other e-commerce sellers can sell the same exact products as you.
If you own your own inventory then you don’t need a drop shipping company. What you’re looking for is order fulfillment.
What is Order Fulfillment?
Order fulfillment is the process of receiving a customer’s order and then picking, packing and shipping that order to your customer. You can either fulfill orders yourself or you can outsource that part of your business to a third party.
A third-party order fulfillment company receives, stores and manages your inventory. In addition they will ship orders as they come in from your various shopping carts. At Ship Central we are able to integrate with all major shopping carts and ship out orders within 24 hours.
Third-party order fulfillment provides e-commerce business owners three major benefits. It frees up your time, helps you save money and it helps you make more money.
1. Free Up Your Time
Instead of spending all day packing orders and making trips to the post office now you can focus on the things that matter: marketing and sales.
2. Saves You Big Bucks
Not only does third-party order fulfillment give you back lost time it gives you back lost money too. We can help you take advantage of better shipping rates and cheaper packaging. Plus you can cut down on overhead too because you no longer need an expensive warehouse and everything that comes with it.
3. Helps You Make More Money
Scaling your business isn’t easy but when you’re ready you need a fulfillment process that can handle your growth. With a third-party fulfillment provider you can now run huge promotions and not worry about getting backlogged for weeks!
The Takeaway
So let’s review: drop shipping and order fulfillment are not the same thing! While drop shipping is a valid business model it’s important to know the difference.
If you own your own inventory and you’re looking for another company to handle your order fulfillment you don’t need a drop shipper; What you need is a third-party order fulfillment company.
Here at Ship Central we can get you on-boarded in 24 hours and shipping within the week!
Contact Us Today for a Free Consultation