Dropshipping has been around for a quite a while. However, it never gained as much popularity and success as it has now. There can be many reasons behind the sudden rise to fame. Some people would say it is the rise of online businesses and some may relate it to increasing demands of customers. However, the major reason why businesses are embracing dropshipping services more than ever is because drop ship automation has now reached a whole new level.
Without automation, dropshipping only offered limited benefits to retailers and suppliers. As a matter of fact, with larger orders and shipments, it could become frustrating and confusing. Today, online dropshipping programs are end-to-end automated through e-commerce store management software.
Another reason why more and more businesses are embracing dropship services is because automation has made it beneficial for retailers, suppliers as well as customers.
Through drop ship automation, real time transfer of purchase orders to suppliers is possible as soon as the order is placed online. At the same time, it allows you to keep track of the amount owed to each supplier. Automation also allows retailers to stay aware of inventory updates from the supplier thus, avoiding overselling and similar inventory management problems.
Another major advantage that automation offers is to reduce the number of resources retailers are required to hire and manage for the whole process. Technically, it is much easier to manage one piece of simple software as compared to managing large staff.
Suppliers are able to issue complete shipping information along with cost and tracking number to the retailers as soon as the order is fulfilled. If there is an aging order, wholesalers, suppliers and retailers are also notified about the status.
Through drop ship automation, it is possible for the suppliers to get a list for open orders. They can have easy and complete access to updated account of owed amounts and payments that have been made. Similarly, each item that is sold by the retailer is reported to the supplier and the inventory is updated accordingly.
Automation also offers more satisfaction and peace of mind to customers as well. Your customers will receive automatic shipping notices as soon as the order is dispatched. With automated dropshipping, customers are often unaware whether the order has been shipped directly from the retailer or through a dropshipping company.
However, it ultimately becomes the retailer’s responsibility to offer support and information regarding the product and purchase. Many make use of EHS Insight or similar software packages to help with this process.
In conclusion, automation makes the whole process extremely transparent and synchronized so that all the parties involved in the transaction can benefit from it. The time, cost and efforts involved in the process is considerably cut down. Plus, a number of risks involved with manual data submission and inventory management are also eliminated.
As a retailer, automation of drop shipping functions will allow you to focus more on your core business functions including merchandising, marketing and customer retention.