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What Is Dropshipping And How Can Speedel Help With Fulfilment

Have you ever been tempted to set up your store and sell products online due to the recent boom in the e-commerce industry? 

You are not alone.

However, running an online store comes with its fair share of challenges. From product procurement and inventory management to storage and shipping, there are plenty of things that need to be planned, managed, and delivered efficiently. And not everyone can tackle them and become a successful e-commerce retailer.

The good news is there is an alternative path that you can take and become a successful online retailer without needing to manage inventory, storage and shipping. That alternative business model is dropshipping.

What Is Dropshipping?

Dropshipping is a method of order fulfilment where a business does not own any inventory and stock the products it sells. Instead, it works as a middleman and purchases the inventory as and when required from a wholesaler or manufacturer and uses third-party fulfilment logistics to deliver orders.

How Does It Work?

The dropshipping business can have a physical, brick-and-mortar store or a virtual store, based on the convenience and preference of the seller. This model is heavily dependent on the relationship of the seller with the supplier and the third-party logistics provider. You can either choose to work directly with one or more wholesale suppliers or connect with several suppliers through special mobile apps and channels. The process works as follows:

  1. Your customer browses your online store and places an order.
  2. The order is automatically sent to your chosen or relevant supplier.
  3. The supplier prepares the order for your customer.
  4. The supplier ships the order directly to your customer or you can use a third-party fulfilment logistics company for shipping the order from your supplier to the customer.

Pros & Cons of Dropshipping

Like everything else, there are advantages and disadvantages to using the dropshipping business model. On the upside, you do not need a large sum of money to get started and then run the business. Since you are not purchasing the products beforehand, the risk of incurring heavy losses is drastically low compared to the traditional business model.

It is also comparatively easy and less expensive to start a dropshipping business. There are few overheads to worry about, no physical store to manage, and no limitations to the number and type of products you can sell.

On the downside, a dropshipping business does not allow a high-profit margin and allows limited control over the stock and its availability. Another major disadvantage of dropshipping is the unpredictability and unreliability of third-party suppliers and logistics which directly impacts the reputation and credibility of the business.

Speedel – Your Reliable Dropshipping Fulfilment Partner

At Speedel, we understand the importance of a dependable fulfilment partner in a dropshipping business. Our fulfilment services are designed to meet the changing demands of your customers and deliver their orders on time. We take the utmost care in using the correct packaging, addresses and related paperwork to ensure the swift and safe delivery of your orders. When you choose Speedel as your dropshipping logistics fulfilment partner, we take care of the following:

  • Picking, Packing And Delivery
  • Storage And Holding Spare Parts/Components For Same Day Delivery
  • 24/7 & 365 Days Distribution 
  • Strategic Locations
  • Secure Storage of Stock
  • Efficient Management During Business Peaks
  • Direct Shipping from Warehouse To Save Time
  • Getting Goods To Your Customers Faster
  • Out-Of-Hours Delivery To Engineers
  • Swift Stock Replenishment

Ready to give dropshipping a try?

Contact our friendly team at 0333 772 2021 or email us at fulfilment@speedel.co.uk to learn more about how we can help with your dropshipping fulfilment. 

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