Drop Shipping

Retailers and wholesalers can sometimes have a different view of shipping than those of us in the shipping industry, especially in international logistics. In international shipping, we look at shipping in containers or at least in larger amounts to get the most out of the freight shipping costs. In retail, companies are looking at it from a “products sold” angle. They want to see their products go out the door since the more that goes out, the more they money they are making. This is where a strategy like drop shipping comes in. Drop shipping means that the product is not sold in a store, but rather through a catalog or on the internet. When an item is drop shipped, it is going directly from the factory or vendor warehouse to the customer cutting out the additional overhead costs of retail space and overall carrying costs.

With the growth of internet sales, drop shipping has become a much larger part of the retail and wholesale markets. While drop shipping has proven beneficial to many companies, there are also some drawbacks consider. In drop shipping, a company needs to be aware of freight rates or they can wind up paying too much. It is important to find a shipping company  that will consider volume in parts rather than full containers. For instance if a company is shipping shoes by the pair, the volume would not be by the container or even by the pallet, it could be by the individual shipment of a few pairs.     

Drop shipping can be a great asset if it is does correctly. Before considering drop shipping, be sure to do the research and work with a well known reputable freight forwarder to make sure your product goes out timely and efficiently so that customers will be willing to order again.