Order Management In Dropshipping Pratices
Dropshipping is the model in which the seller does not handle the product directly. Instead, it has another supplier or manufacturer fulfill the order and deliver it to the customer. This keeps the seller from the warehouse and storage burden while enabling customers the get the product faster. However, because the selling merchant does not stock or own inventory, it possesses an order management issue. It is rather simple to keep track of stock changes if you own the inventory. But the number of orders changes every day. You need to be in touch with the supplier all of the time to fulfill the order in time. Fortunately, there are plenty of apps these days to help. One of the most effective software is the Atom8 automation workflow. The app lets you sync with the suppliers and contact them in just a few clicks. How can you do that? This article will discuss 4 easy ways that dropshipping merchants can automate their order management. 1. Categorize orders by address Customer segmentation is extremely important for order management, especially when you’re operating on a dropshipping model. Without accurate grouping, you risk sending the product to the wrong customer. Because the supplier delivers it on behalf of your store, you’ll suffer from reputation damage and additional costs to fix the mistake. Thus set up a workflow in Atom8 to put your customer in the right group after the order is placed. You can also send a notification email to your suppliers so that they’re aware of the new package and address. 2. Export orders to a spreadsheet A spreadsheet always helps in managing data, especially when you’re dealing with tons of them per day. You never want to wait until the end of the week or month to manually update every detail all at once. It’s too exhausting for anyone. Instead, you can export the data to your spreadsheet under specific conditions. In this example, the file will be automatically updated once the order status is changed. You often have to wait for a while until the issuing bank verifies the billing information. Yet the advantage is that you don’t have to go in and out to change the status and send emails yourself. 3. Change order status according to shipment method This is particularly useful if your customer wants to pick up the package in-store after paying for it. This makes things a little bit different. You might want to hand the item to your customer after receiving it from the manufacturer. Or you can direct them to the supplier location to pick up the items. Make sure that you discuss this with your partner beforehand to avoid misunderstandings. 4. Assign product to backorder Sometimes some products get a higher demand than usual. In this case, being out of stock might cause a tremendous loss of customers and revenue. One solution is to allow backorder in your store. This way, whenever an item runs out, your customer can still order and have it delivered later in the future. The key is to clearly disclose all the information related to the waiting time and shipping method. Final notes After all, dropshipping is not perfect, especially when it comes to order management. It is a quick way to get money, but you should always keep an eye on the challenges to maintain a smooth business workflow. Remember, you can always seek help at Atom8.
Top 5 Trending Dropshipping Products to Sell Online In 2021
Dropshipping is a new retail business concept that allows you to sell things without having any large inventory or greater investment. Retailers must search the wholesalers who are willing and competent to manage distribution for this strategy to succeed. This is an attractive business model that profits the business owners to a greater extent. We’ll go over all you need to know about choosing products for your dropshipping business in this post. Following are the top 5 trending dropshipping products that are hot products to sell online in 2021: Health and Personal Care The term “levels of care” is widely used by medical practitioners. Primary care, secondary care, tertiary care, and quaternary care are the main four categories of Health and Personal Care. Each level is predetermined according to the severity of the medical issues. Each layer treats a particular type or a particular range of severe issues. These layers also define the clinicians’ abilities and expertise. Health and personal care are the top 5 dropshipping products to sell online in the year 2021. Gaming Video games are a multibillion-dollar industry that has been around for a long time. The global PC gaming market is expected to earn about 37 billion dollars in revenue in 2020, while the mobile gaming market is expected to produce over 77 billion dollars. This is a profitable market for business owners who are just entering eCommerce. It also hoards the greatest amounts of dropshipping products to sell online in the year 2021. Camera and cellphone accessories Other top trending dropshipping products to sell online in 2021 are camera and cellphone accessories. The camera and mobile phones are a necessity in this digital age. Without these accessories, a person is armless. You can still profit from dropshipping phone accessories. Kitchen and Grocery Dropshipping phone cases are not only cost-effective but also convenient. You’re okay to go as long as you don’t stock your store with all of the kitchen and grocery cases. The kitchen gadgets and grocery items are everyday necessities. Nobody can deny the importance of kitchen and grocery items. So, they are the best products to dropship in 2021 during the lockdown period. Tools and home improvement These are common household equipment, such as a hammer, an adjustable wrench, and a screwdriver set. Home improvement tools are frequently used in home repairs. Without these, no toolkit is complete. However, the demand for tools and home improvement tools never recede. We recommend you choose the best dropshipping products of this category as the demand is always high. You will profit greatly. Conclusion Dropshipping is a type of business that has become most famous recently. This is a one-of-a-kind character, which permits people to launch a business. The investor does not have to hoards of the investment – They are without a large initial investment or overhead. So, choose any of the above top 05 trending dropshipping products that will sell instantly in 2021 during the lockdown period. Even without a large initial investment, your business should still have a contingency plan in case inventory is not enough. If you’re a BigCommerce merchant, BackOrder will help you by allowing buyers to place an order when the inventory is zero. Customers can still pay as usual and the bought items will be dispatched to the their door as soon as the items are in stock. You can learn more about BackOrder here: The app allows your customers to purchase even with 0 inventory.
Managing Inventory with Third Party Fulfillment for Ecommerce Shops
Effective inventory management is the backbone of a successful eCommerce business. It ensures that products are available to meet customer demand without overstocking, which can tie up capital and incur storage costs. Proper inventory management minimizes the risk of stockouts and overstocks, thereby enhancing customer satisfaction and optimizing operational efficiency. This blog explores the concept of third party fulfillment and its critical role in inventory management, providing insights on leveraging these services for better inventory control. What is Third Party Fulfillment Third party fulfillment involves outsourcing logistics and inventory management to specialized providers. These providers handle tasks such as receiving inventory, warehousing, picking and packing orders, and shipping products. This allows eCommerce businesses to focus on core activities like marketing and product development while ensuring efficient and reliable order fulfillment. Key services offered by third party fulfillment companies include secure warehousing with real-time inventory tracking, efficient order processing, and managing shipping with multiple carriers to ensure timely delivery. They also handle returns and provide inventory management services, such as monitoring stock levels and conducting regular audits. The main differences between in-house fulfillment and third party fulfillment are related to cost, scalability, and expertise. In-house fulfillment can be resource-intensive, while third party providers benefit from economies of scale, leading to lower costs. Third party fulfillment offers scalability, allowing businesses to adjust operations based on demand without significant investment. Additionally, these providers offer specialized knowledge and advanced logistics technologies, ensuring efficient and reliable fulfillment processes. Benefits of Using Third Party Fulfillment Cost Savings Using third party fulfillment can lead to significant cost savings for eCommerce businesses. By outsourcing logistics and inventory management, businesses can avoid the high costs associated with maintaining their own warehouses, hiring additional staff, and investing in logistics technology. Third party providers benefit from economies of scale, enabling them to offer these services at a lower cost. Improved Efficiency Third party fulfillment providers are experts in logistics and supply chain management, and they employ advanced technologies to streamline operations. These providers use sophisticated inventory management systems to track stock levels in real-time, ensuring that inventory is accurately monitored and managed. They also optimize order processing and shipping, reducing errors and delays. This increased efficiency leads to faster order fulfillment and reduced operational complexities for eCommerce businesses. Scalability Third party fulfillment offers unparalleled scalability. Businesses can easily adjust their inventory levels and fulfillment needs based on seasonal demand fluctuations or growth spurts without worrying about capacity constraints. This flexibility is particularly beneficial for eCommerce shops experiencing rapid growth or dealing with unpredictable demand. Enhanced Customer Experience By leveraging third party fulfillment, eCommerce businesses can provide a better customer experience. Faster shipping times, accurate order fulfillment, and efficient returns management increase customer satisfaction and loyalty. Additionally, the ability to offer multiple shipping options and real-time tracking enhances the overall shopping experience. Best Practices for Managing Inventory with Third Party Fulfillment Accurate Inventory Forecasting Accurate inventory forecasting is crucial for effective inventory management. By analyzing historical sales data, market trends, and seasonal patterns, businesses can predict future demand more accurately. Third party fulfillment providers often offer advanced forecasting tools and analytics to help businesses make informed inventory decisions. Regular Inventory Audits Regular inventory audits are essential to ensure that the actual stock levels match the recorded inventory. This practice helps identify discrepancies, prevent stockouts, and reduce excess inventory. Third party fulfillment companies typically conduct routine audits and provide detailed reports to maintain inventory accuracy. Effective Communication Effective communication between eCommerce businesses and third party fulfillment providers is vital for smooth operations. Clear communication regarding inventory levels, order volumes, and shipping schedules ensures that both parties are aligned and can address any issues promptly. Regular meetings and updates help maintain a strong partnership. Leveraging Technology Leveraging technology is key to optimizing inventory management with third party fulfillment. Many providers offer integrated inventory management systems that provide real-time visibility into stock levels, order status, and shipping updates. These systems enable businesses to make data-driven decisions and respond quickly to changes in demand. Managing Inventory with BackOrder BigCommerce BackOrder, created by Grit Global, is an innovative solution designed to help eCommerce businesses manage inventory effectively, even when products are out of stock. By allowing customers to place orders for out-of-stock items, BackOrder ensures that sales momentum is maintained and customer satisfaction is enhanced. BackOrder offers several key features and benefits that make it a valuable tool for inventory management: Conclusion Managing inventory effectively is crucial for the success of eCommerce businesses. Third party fulfillment offers significant advantages, including cost savings, improved efficiency, scalability, and enhanced customer experience. Additionally, tools like BackOrder from Grit Global can help maintain sales momentum and customer satisfaction, even during inventory challenges. If you have any questions or need assistance with managing your inventory through third party fulfillment, please contact us.
Is Dropshipping Meant For Your Online Business?
What is Dropshipping? Dropshipping is a retail fulfillment method; the business does not keep the products it sells in stock. Specifically, the products are sent directly from your wholesaler to your customer, and you are not required to keep products in stock. With a dropshipping model, when a store sells a product, it purchases it from a third party and gets the product shipped directly to the customer. In this model, a seller doesn’t have to handle the product directly. In the traditional retail model, you have to open a brick-and-mortar shop, maintain stock of products and have to pay overheads, whereas, in the dropshipping model, you open an online store and accept the customer’s order, and you transfer that order and the shipment details to a third party, i.e. a wholesaler, manufacturer etc., who then ships the goods directly to the customer. Pros Of Dropshipping For aspiring entrepreneurs, it is a great business model because it allows them to test different business ideas quickly. Some other benefits are: Low Investment Minimal funds are required to start a dropshipping business as there are no upfront inventory costs or shipping logistics. Easy to Start Prior experience is not inessential to start this business; you can easily start this business with some foundational knowledge. In dropshipping business, you do not have to worry about inventory, warehousing, shipping, etc. Flexibility A dropshipping business can be run from anywhere as it does not require a physical store, warehouse, team or office. You only need a laptop and a good internet connection. Moreover, you have the liberty to choose your work hours. Another advantage is that you can easily add new products anytime at no- additional cost as you do not have to purchase them. Scalability It is relatively easy to scale a dropshipping business as most of the additional work falls on the suppliers. Cons of Dropshipping Business Though dropshipping is an attractive business model but it has its downsides too. A few cons of are: Low Margins Dropshipping is a highly competitive vertical, and the margins are very low. For making profits, you will have to make more sales. High Competition It is easy to enter the market for anyone as dropshipping requires little capital and expertise and has low entry barriers, resulting in high competition. Inventory Issues Since you do not have your own inventory and source the product from different suppliers, it is challenging to track stocks as suppliers work with many other retailers. Supplier Errors You have to accept the responsibility and take onus in case of delayed shipment, damaged goods, missing items, and low-quality packaging even though it is the supplier’s fault. Dropshipping Best Practices It is a supply chain model that allows you to lower costs and expand with fewer efforts and resources. The best practices in dropshipping business are an investment in automation to save time and effort doing manual tasks. Establish strong communication channels with vendors and cultivating a strong relationship with vendors. Outline business rules and compliance guidelines very clearly. Additionally, monitoring vendor performance and taking corrective measures before the escalation of the problem is the key. In summary, following these tips will help you better manage your business and make it profitable.
Avoid Late Shipment in Dropshipping with Automation
As a dropshipper, late shipment is one of the most painful problems you have to deal with, day in day out.
