Outsourcing some of the tasks related to order processing can bring many benefits to an online shop. However, there are two services to choose from – dropshipping and fulfilment. Which one should you choose? Learn about the pros and cons!
Dropshipping – what is it and how does it work?
Dropshipping to online sales model where the shop does not hold stock in its own warehouse. Instead, when a customer places an order, the seller purchases the product from a supplier (wholesaler or manufacturer), who then ships it directly to the customer.
Advantages of dropshipping
The advantages of dropshipping include: lower costs of launching a shop The possibility of outsourcing some sales-related tasks to a supplier frees online retailers from the need to rent warehouse space and hire staff to fulfil orders.
The first advantage is linked to two further advantages. Sellers can offer various products without purchasing them. In other words, all you need to do is find a wholesaler of items in a given category, e.g. clothing, sign a dropshipping agreement and start your business. This allows you to run your business from anywhere.
Cons of dropshipping
In dropshipping, a lot depends on the supplier. Those managing the company they do not have full control over the timing and methods of product delivery . An entrepreneur will only find out whether the choice of business partner was the right one in the first few weeks of cooperation, based on customer feedback.
Dropshipping also excludes imposing high margins on goods. In this model of cooperation, suppliers charge commissions for performing services. The margin must necessarily be low enough for customers to want to buy products in our online shop.
The price of the product range is crucial due to the third drawback of dropshipping. Wholesalers and manufacturers offer their services to many companies, but none on an exclusive basis. As a result, different online shops sell the same items In such a situation, the battle for buyers' favour forces price reductions.
Fulfillment – what is it and how does it work in e-commerce?
Fulfillment to e-commerce order processing , which includes storage, packaging and dispatch of goods to customers. In this logistics model, an external company takes over all of the above responsibilities from the online retailer, allowing them to focus on promotional activities, for example.
Zalety fulfillmentu
This logistics model also eliminates the need for the entrepreneur to rent a warehouse and paying persons employed to handle orders. Monthly company expenses are therefore lower , which allows the surplus to be used for other purposes such as advertising, staff training or purchasing goods to expand the product range.
The advantages of fulfilment also include well-organised delivery methods In particular, using the services of a courier company brings benefits. After all, it can be assumed that such a company has proven methods of delivering parcels and a significant number of collection points, and also offers home delivery to customers.
Dropshipping vs fulfilment – how do these models differ?
In dropshipping, the seller does not have their own product range. It is entirely based on what is available in the wholesaler's or manufacturer's warehouse. After the customer places an order, the shop purchases the goods and arranges for them to be shipped to the recipient.
Dropshipping can therefore be considered as business model , which is ideal for people starting a business. Since there is no need to purchase products, the costs of starting and running a business are reduced, which has a huge impact on the profitability of the business, especially in the beginning.
Fulfillment involves offering your own goods. The service provider, e.g. a logistics company, handles order picking and shipping. Some companies, such as InPost Fulfillment, also offer additional services, such as accepting returned items.
Purchasing products is an additional cost, but it allows you to stand out from the competition. It is entirely up to the seller what they trade in. Fulfillment is a valuable service for companies, both those with longer experience in e-commerce who want to gain an advantage over their competitors, and those who are just starting their adventure with e-commerce and want to invest in goods to maintain product attractiveness and have greater control over sales.
InPost Fulfillment – where will it work?
Now that we know what dropshipping and fulfilment are, it's time to move on to the advantages of the latter service, this time in the InPost version.
Who is the InPost Fulfilment service intended for?
InPost Fulfillment this solution was designed with companies conducting online sales in various industries h. The service covers the shipment of products such as clothing, electronics, cosmetics, household chemicals, children's items, and pet accessories.
Logistics within InPost Fulfillment
One of the advantages of this service is extensive warehouse infrastructure with a total area of 100,000 m². What is more, sorting centres are located in various parts of the country. From there, thanks to couriers, orders are delivered to designated collection points such as Paczkomat®, PaczkoPunkt or home.
The entire logistics system works particularly well during periods of increased sales, e.g. during the festive season, when a large number of items need to be sent quickly to customers living in different parts of Poland.
InPost Fulfillment – order fulfilment
Extensive logistics infrastructure allows for rapid order fulfilment . Parcels can reach customers the very next day if the order is placed before 8 p.m.
Orders are completed in accordance with the guidelines of the respective online shop. This way, InPost adapts to the individual requirements of sellers .
Another element of automation is co-packing, i.e. repackaging products from bulk packaging into individual packages ready for shipment InPost can also take care of labelling packages and carrying out promotional activities, such as adding advertising leaflets to parcels.
As part of InPost Fulfillment, the seller may also order returns acceptance service . Thanks to this, many online shops, including clothing retailers, have the opportunity to get rid of the obligation to accept and store clothes that customers have returned.
Fulfillment by InPost is a service worth considering.
Fulfillment in e-commerce brings benefits, and the option from InPost in particular. That is why it is a good idea to consider using this service. Thanks to this, e-commerce logistics services are provided at the highest level!
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