Drop Shipping 101

Drop shipping = no inventory3

  • Reduce risks associated with accurate sales forecasting
  • Reduce costs of holding inventory
  • Retain customer relationship

Imagine you have an eStore selling a wide range of goods, but you don’t have to hold stock of them all. Instead, when a customer purchases something from your eStore, the wholesaler sends it to them on your behalf and then invoices you for it. This is Drop Shipping and it’s revolutionising retail and eCommerce in particular.

Drop Shipping means you don’t have to accurately forecast sales, pay for stock up front, or pay to have it shipped from the wholesaler to your distribution centre. Drop Shipping means companies of all sizes can sell a wider range of products than ever. If you’re just starting out it’s a great way to get your store running while minimising your set up costs and risk. If you’re already an established retailer it’s also a low risk way to trial new products.

Many wholesalers are now offering Drop Shipping and our updated StarShipIT app makes drop shipping simple. StarShipIT automates the logistics of Drop Shipping with its new ‘Parent-Child’ functionality.

Within StarShipIT, you can set your wholesaler up as a ‘Child’ with their own login to your StarShipIT panel so they can see the orders they need to fulfil on your behalf. Your wholesaler can ship the order direct to the purchaser and include a customised packing slip with your company name, logo and contact info. At any time, from anywhere (with an internet connection) you can login as the ‘Parent’ to see all of your orders in one screen, get an overview of their shipping status and even search individual suppliers (Children) to see how they are performing. This is Drop Shipping and it’s revolutionising eCommerce.