Thanks to its convenient location within the United Kingdom, Manchester has always enjoyed a prominence within the shipping industry.
In fact, the majority of successful cities were originally founded upon important trade routes.
Shipping has certainly come a long way in the past decade thanks to the rise of the Internet and the prevalence of online business solutions.
Unfortunately, many high-growth companies will eventually hit a wall in terms of logistics. This is often the result of the inability to keep up with customer orders.
Not only can sales be lost, but clients could simply migrate elsewhere in order to procure similar goods; perhaps from a competitor.
This is why many Manchester businesses are choosing to employ an entirely unique online shipping method known as drop shipping.
What does this technique entail, why can it ensure a greater degree of flexibility and what should you take into account before partnering with a reputable drop shipping firm?
Taking logistical efficiency to the next level
Before moving on to examine its numerous benefits, we should first begin by explaining the basic business concepts associated with drop shipping.
Drop shipping is different from standard methods in a number of ways. The main purpose of this option is to provide sellers with a greater degree of flexibility when it comes to sending their products to online customers.
As opposed to storing these items within a physical warehouse (and incurring substantial costs), the seller partners with a third-party supplier. In other words, in-house inventory management is no longer a concern.
In the event that a sale takes place, the supplier is immediately alerted. He or she will thereafter directly ship the product to the end user.
The seller is likewise notified about when the product was sent, how long it will take to arrive and its associated tracking order. So, little is left to chance in terms of customer satisfaction.
The use of a middleman is also very useful when bulk orders need to be sent within a limited time frame, as accommodating such needs would be difficult if normal techniques were employed.
Having said this, it is just as important to mention that drop shipping might not be for everyone.
Online businesses that are just starting out could find such a service superfluous, as they may not yet need to fulfil larger orders within demanding time frames.
Drop shipping is mainly utilised by high-growth enterprises or freelancers who would otherwise be forced to deal with challenging logistical demands.
What are some things to consider in the beginning?
While the benefits associated with this method of shipping should now be clear, it is just as important to realise what goes into a drop shipping provider.
How will you know which company is the best to use as well as those which are better off avoiding? It is a good idea to list some key metrics to determine well in advance.
One very relevant concern is the types of products that can be shipped to the end user.
Let’s not forget that there are literally thousands of options (depending upon the drop shipper) and not all of these will prove to be “hot” items.
This is why you should perform a bit of research ahead of time. What items are trending within the marketplace? What products will resonate the most with your audience base?
It only stands to reason that drop shipping platforms which provide a wide array of choices are more likely to suit the unique needs of your venture.
It is also wise to take a look at the profit margins you can expect to enjoy.
Drop shippers often list items at or well below their suggested online retail prices. Thus, you are supplied with a higher return on investment.
Some products will also be marked up higher than others. This can depend upon conditions such as the cost of shipping and the popularity of the item in question. Select a drop shipping service that offers a wide profit margin.
On a final note, it is always crucial to appreciate what other sellers have been saying about their experiences with the drop shipping firm iteslf.
Have they been pleased with the results or have you come across mostly negative reviews? Word of mouth is very important, as it will offer you an objective overview of what is in store before you commit to any type of service contract.
The good news is that companies such as Oberlo are known for their stellar levels of client satisfaction.
Manchester business owners should give serious consideration to the inclusion of drop shipping within their current business models.
Not only is this method highly efficient, but it is able to save sellers a great deal of money when compared to more traditional shipping techniques.