Internet retailers can now turn even low margins and small dollar items into real profits by automating the drop shipping process. OrderStorm has pioneered an e-commerce software-as-
The popularity of drop shipping has grown significantly over the last decade with the proliferation of retail stores online. Drop shipping is considered a best practice in both just-in-time inventory management and supply chain management where the retailer does not keep any merchandise in stock. Instead, customer orders are sent to either the manufacturer or to a wholesaler that then ships the items directly to the customer. Drop shipping is commonly used by catalog, mail order, and internet retail businesses to offer the customer the widest possible variety of items without making an investment in inventory.
"Drop shipping is good business for manufacturers, distributors and retailers," says Jodie Barr, President of OrderStorm. "Suppliers concentrate on manufacturing and shipping, while the retailer concentrates on sales and customer service - each to his own talents." Duplication of effort in the supply chain is reduced along with all related costs as only one member in the chain needs to 'pick, pack and ship'. Barr goes on to say that "Drop shipping is also good for the consumer as savings in warehousing and shipping costs can be passed on by the retailer."
OrderStorm automates this process to make a drop shipping operation run smoothly and efficiently. Full end-to-end automation of the various drop shipping functions works like this:
- A check box is selected to identify an item in the shopping cart for drop shipping.
- The supplier is selected for each product from a drop down list.
- Formal purchase orders (POs) go out to suppliers in real time as orders come in.
- Suppliers provide shipping information, actual shipping cost and tracking numbers back to the retailer using an online form as orders are fulfilled.
- Customers receive automatic shipping notices.
- Suppliers are prompted for status on aging orders.
- Amount owed to each supplier for the pay period is automatically calculated and sent to the accounting department for payment.
Technical questions for the supplier or manufacturer are also automated using OrderStorm. Once a product in the shopping cart is linked to a supplier, any technical questions submitted through the website can go directly to the correct supplier.
- A box on every product page allows customers to submit their questions online.
- The question is delivered via email to the corresponding supplier with a link to a reply screen.
- When the supplier answers the question and selects the 'Submit' button, the answer is emailed to customer.
- The question and answer is simultaneously posted to a Frequently Asked Questions (FAQ) list that appears at the bottom of the product page.
Using OrderStorm makes it easy for suppliers as well. Automation makes the entire process paperless and transparent for the vendor. The platform supplies each vendor with their own administration area. Vendor tools in the administration area include:
- A list of open purchase orders
- An interface to enter shipping and tracking information
- A running account of amounts owed and payments made
- Reports on how much of what item the retailer is selling for them.
Continuing automation is the key to increased productivity in all areas. Using the OrderStorm automated e-commerce software platform for drop shipping will maximize any Internet retailer's profits. Visit http://www.OrderStorm.com for more information on automated drop shipping software.
