Recently, drop-shipping, as an e-commerce fulfilment method, became one of the easiest ways to sell online. The main reason is that it eliminates the need to keep the products a company sells in stock. This business model simplifies business by requiring a low capital. Furthermore, if you are planning to start your own business or expand an existing one, this article will guide you through e-commerce sales channels, and provide you with pros and cons of drop-shipping order management.

What is drop-shipping?

As mentioned before, drop-shipping is an e-commerce fulfilment method which doesn’t require to buy or keep goods before selling them. In other words, as soon as you receive an order, simply inform your vendor. There is no need to pick up or stock parcels by yourself, your drop-shipper will do it for you. So, the main task is to sell – which includes marketing strategy and customer service.

Drop-shipping advantages

Low-capital. There is no need to invest in a storage facility or items. As a consequence, all you need is a computer, the Internet and personal qualities to manage contracts, deal with clients, and run your e-shop.

Location. The only requirement for a workplace is the Internet. In other words, if you have a portable Internet connection your office could be located wherever you want. You can control drop-shipping order management with your personal computer.

Price. As an online seller, you buy goods for a retailer price. Which is far lower than a usual shopper price. An obvious advantage is that most of the time a reseller is not bound to a suggested retail price (which is called MSRP). In other words, you can set your own market price, and control your profit.

Only one risk – bad reputation

The only thing which could downturn your success as a reseller is bad reputation. Keeping in mind that drop-shipping disables shipment control, things might get out of hand.

The worst thing in e-commerce is late shipments, so being the third party might provoke it.

How to avoid bad reputation?

Of course, there is a way to avoid decreased reputation. Your solution is an excellent customer service. It is essential to pay your attention to orders and check the shipping status for all the customers. If you see a possibility of a late shipment, let your customer know about it as soon as possible.

To have enough time for that, you need to be faster with your drop-shipping order management. A time-efficient way to do it is by using a order management software, which automates your business. Update your inventory and fulfil the order with a few clicks in Multiorders.

Benefits for drop-shipping order management

Stock-list. Adjustable inventory management. Control all orders in one place, despite their sales channel.

PO and Invoice. All data in one place. As soon as you get an order you simply need to pick your drop-shipper and send an Invoice or a Purchase Order. In other words, you do not need to search for an additional website for invoices, PO, or payments.

How to increase your business?

If you want to make more sales, you have to reach more customers. In other words, sell through multiple sales channels. Moreover, each marketplace has their own clients, so working with them will bring you more orders. In addition to helping you handle different sales channels, Multiorders has integrations with nearly all sales channels. Update all information about price or stock-list in bulk, which instantly appears on all marketplaces. Multiorders: