Have you heard the phrase that “dropshippers are invisible”? This is something that an online entrepreneur might understand. After all, many use dropshipping as a key component of their business. Though there are some risks in this way of doing business (wrong items sent, inventory glitches, and lower profit margins for the seller), it can help you to begin building a very successful, multichannel retail business.
This is even more the case when you use integrated solutions to streamline and organize all of your sales operations. For instance, most multichannel vendors establish a presence at Amazon.com. The size of the audience and the diversity of goods ensures that this is a savvy business decision, and yet without proper Amazon shipping management functions, it can all go haywire. This is particularly true when dropshipping is the business model.
As an example:
An online entrepreneur sells travel mugs which are distributed through one dropshipper, which is also the manufacturer. They use a few different channels through which to sell them, including an eCommerce site and Amazon.
A buyer purchases several of the mugs through one of the channels. The payment is captured through the vendor’s eCommerce site, and the wholesaler (dropshipper) is notified of the sale. They get all of the details for properly picking, packing, and shipping the order. They charge the seller for the products and the shipping, send them an invoice (usually via email) and then send out the order to the online buyer.
When a dependable Amazon selling and shipping management system is at work, all of the documentation, and the entire sales/shipping process will be easy to access at any point along the way.
Whether through automation or manual communication, the dropshipper receives all of the paperwork or information required and uses this for the shipment. The products will appear to have come from the eCommerce site or seller, including the name and logo on the packing slip. The seller will notify the buyer of the shipment – usually after the invoice is received from the dropshipper.
So, we can see that the dropshipper is invisible to the buyer, but not the vendor. There needs to be a lot of good and clear communication between these two parties, and this is not always easy. This is why eBay, newegg, and Amazon shipping management options are of such benefit to sellers.
Understanding the Need for Amazon Shipping Management
Let’s continue to use Amazon as a prime example of the importance of well-coordinated shipping practices. For instance, it is not unusual for people to have multiple items in their cart and for these items to come from a diversity of sources. When you use Amazon shipping management tools, you will get information directly from your seller account. This is detailed information that makes it abundantly clear just what type of shipping, the speed of the shipping, and even if the buyer is comfortable with more than one shipping date (such as when products are not available).
Again, with that last point – when there is a glitch in the inventory – the Amazon shipping management tools can really come to the rescue and point out any items currently unavailable. When integrated in a multichannel management system, your Amazon shipping management will be alert to any discrepancies in available inventory. This prevents overselling and customer disappointments, plus it also streamlines your entire sales process by adjusting inventory across channels, as well.
Don’t stress out about inventory management or tracking the drop shipping process when you use integrated services and shipping management resources.
Summary
Amazon shipping management resources monitor your transactions each step of the way. This prevents sales when inventory is unavailable but also guarantees that drop shipping is optimized without a lot of extra effort or cost.
Source
Shopify. What is Dropshipping. Spotify. 2014. https://ecommerce.shopify.com/guides/dropshipping/understanding-dropshipping