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Drop shipping made easy

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Published on January 27, 2012 Drop shipping made easy

Posted at 10:40 am in Ecommerce by

Last updated on October 30, 2018

What is drop shipping and how does it work?

Drop shipping is a popular business model in the US and Europe, where no stock is held by you as a business owner. Instead you buy the permission to market your supplier’s products and hold no stock. When someone orders that product, you place an order through to your wholesale supplier and they send the items directly to the customer, minus the invoice of course.

The advantages of drop shipping are that you can sell more products than you can afford to stock and the supplier holds the risk of selling off old stock that doesn’t move. Of course the disadvantages are that you can’t see the items before they go to customers to check their quality (so you don’t know if they were damaged or not when sent), you can’t control the packaging of the items, and don’t know if they are in or out of stock when processing orders – so you may need to do a lot of refunds if your suppliers are unreliable.

If after weighing up the pros and cons of drop shipping you decide that it’s a model you want to follow for your business, Ozcart shopping cart software can make it easy for you. Some of the ways include:

  • On the Diamond Package, Multi Warehouse / Multi Vendor Shipping is possible. This means that products can be assigned to warehouses or shipping locations, and then the shipping price shown on checkout is calculated based on the shipping methods and prices available at that location. You can have a different set of shipping or postage options at every location you set up – one for every product in your store if you like, one for each warehouse you ship from, or from each country you dispatch from. The choice is up to you. Orders can be automatically emailed to suppliers after orders come through (or done manually if you wish).
  • For non Diamond package customers, products can also be assigned to suppliers and drop ship orders automatically sent, or compiled to send to manually if you wish (the difference is that shipping costs are calculated from only one shipping point, and can only be one set of shipping methods offered).
  • Order minimums can be applied by product, or by order total.
  • You can take advantage of the normal features of a shopping cart – credit card payments via multiple methods, Australian shipping methods, Australian currencies and languages, Australian dates, Australian GST and Australian spelling of your error messages and other messages to customers.
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