YakitCROSS BORDER ECOMMERCE SHIPPING SOFTWARE SOLUTION COMPANY

Drop shipments for Order fulfillment

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INTERNATIONAL CROSS BORDER ECOMEMRCE SHIPPING SOFTWARE AT IT’S BEST.

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Previous blogs have highlighted the importance of short delivery times in e-retailing for customer

satisfaction. One important means of shortening the time between order placement and product

delivery is using drop shipment. The Drop Shipping process is

shown in the chart below.

Chart from www.visual.ly

The process essentially consists of the customer placing the order on the retailer and receiving the shipment direct from the manufacturer.

The Pros and Cons of using drop shipping

The major benefits in using drop shipments for an e-retailer are:• Faster order fulfillment by eliminating the lead time for

product movement from the manufacturer to the retailer’s warehouse.

• No inventories and therefore no costs for warehousing, order picking and packing. No problems of slow moving inventory or product obsolescence.

• Gives the option to experiment with various products for customer acceptance and to add or remove products without major costs.

• Provides the opportunity to list major brand products alongside lesser names to provide the customer with options for comparison shopping.

The possible disadvantages are:• Lower margins since there is no incentive for the

product manufacturer to offer price discounts without a commitment on off take  volume.

• The product manufacturer’s name becomes known to the buyer. His next order may not be on your website.  

• A customer order that includes more than one item would be shipped to him in separate consignments which would reach him at different times. This could cause customer dissatisfaction, for example, with apparel and accessories ordered together or multiple items ordered for a specific occasion such as an anniversary.  

• If the customer order requires shipments of items from manufacturers located in different countries, the co-ordination of these is especially difficult.  

• The drop shipper’s performance in terms of time, quality of packaging and responsiveness impacts your brand name.

• Product returns becomes messy to handle .

Technology solves some of these disadvantages

The use of a common technology platform for order fulfillment between the e-retailer and his suppliers helps overcome some of these disadvantages. The Yakit.com platform is one such technology platform that can be readily deployed by an e-retailer with each of his suppliers. The significant benefits of using the Yakit.com platform are:

• Duties and taxes are guaranteed so that the customer knows the price he sees on the website is the price he will be charged.

• The platform enables end to end tracking of the shipment through package pick-up, line haul, customs and final delivery. This tracking is possible for all three parties, the e-retailer, the shipper and the customer. The Yakit platform also notifies all three parties of the status of the shipment at all times in the shipping process.

• The Yakit box permits shipments from various suppliers to have a common look and feel. The use of uniform product descriptions and commodity codes for tariff ensures that packages are not held up at customs clearance.

• The printing of address labels with common software prevents errors that can cause packages to go astray.

• The Yakit network of qualified partners in various countries provides for uniform shipper experience in package pickup, paper work and shipment tracking. For the customer, the final delivery experience is similar even if the packages are from different manufacturers and from different countries.

We have a specialized cross border delivery software solution that makes it possible for us to provide seamless and reliable services to all our clients. If you want to know more about our Ecommerce delivery, please fill out this online form and tell us a little about your business. Alternatively, you can also call Yakit on +1 408 645 0086. Don’t forget to check out our blog HERE.

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