Drop & shop, or drop shipping as it is most commonly known, is a retail fulfillment strategy that does not require physical stock to be kept by retailers or eTailers. Rather than keeping products at a store, stores purchase products from a third party supplier when an order is made. The supplier then ships the product to the customer, and the shop owners does not handle the product at any point.
The main difference between drop & ship and standard retail models is that eTailers do not own stock. Inventory is instead ordered as needed from one or more wholesalers or manufacturers. This strategy, like many others, has its advantages and challenges. If you are thinking about becoming a drop ship supplier, or a drop ship business, you may be wondering how it works. For those who are aiming to sell US goods without being based in the US, the process can be even more confusing. Not having a US address is one of the biggest challenges for customers as well as businesses who in drop shipping. One of the simplest ways around this challenge is to invest in forwarding box in order to offer worldwide shipping.
How does drop shipping work, and what do you need to know about this approach if you are considering it for your eTail business? Keep reading to find out.
Before you drop & ship, it is a good idea to understand the benefits and challenges. The drop shipping model has a number of advantages, including the following:
What happens if you are customer hoping to buy products from a drop shipper? You will need a forwarding box if you are based outside of the drop shipper's country for starters. Some of the below questions will give you more information on what to consider, whether you are a drop shipper or a customer using one.
Drop shipping suppliers generally pay for shipping, but they will often pass this cost on to the shop that placed the order. Customers will then also pay for this in the final cost for the item that they have purchased. This cost will vary depending on factors such as whether it is worldwide shipping or local shipping.
Many customers may use a forwarding to purchase items from the US. This enables them to get products shipped from suppliers that do not generally ship to their chosen destination. The most common form of forwarding is done through a US address or post box. The challenge with this however is that some drop shipping suppliers do not recognize the address, and the order is sometimes canceled automatically. There are a few ways that this can be navigated, luckily...
If you use a drop shipper or you are a customer purchasing from a drop shipper, you can use a trusted shipping partner such as eLogX, which gives you a US address that is authentic and reliable. This is the most effective way to get the products you need without any delays or issues.
To learn more about the solutions offered by eLogX for drop & ship or forwarding box options, simply contact us today.