What is Dropshipping?

A dropship or dropshipping model is a supply chain and fulfilment method, where suppliers pick and deliver stock directly to the consumer on behalf of another business, typically a retailer.

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Dropshipping is a supply chain model and fulfilment strategy in which a business does not own and store the products it sells; instead, its dropship suppliers pick and deliver stock directly to the consumer on the business’s behalf.

Whilst dropshipping is not a new approach to order fulfillment, its popularity has grown considerably in recent years with the growth of online shopping. Estimates suggest that between 20% and 30% of online retailers now use dropshipping.

Dropshipping presents retailers with the opportunity to extend their product portfolio and increase sales without the risks and expense of increasing the value of the inventory they hold, the associated storage and handling costs, and the risk of obsolescence. Instead, these tasks are the responsibility of the supplier, who, in turn, benefits from expanding sales channels.

A dropshipping model is for businesses that are looking to increase the flexibility and scalability of their supply chain by enabling dropship suppliers. It allows businesses to increase sales by expanding their product catalog in response to changing market conditions and consumer demand, without increasing their warehouse, inventory and distribution costs.

A key element of a successful drop ship program is ensuring that the service your customers receive is consistent with the service you offer when using a traditional order fulfillment method. With the TrueCommerce dropship solution, we provide retailers with all the information you need to keep their customers up to date on the status of their orders, including stock, order fulfillment and tracking information, ensuring you provide an ordering and delivery process that matches the efficiency of deliveries from your own warehouse.

Delivered as a fully managed service, the TrueCommerce dropship solution enables you to respond rapidly to changing consumer demands by quickly and easily onboarding new dropship suppliers.

If you are a supplier that is looking to dropship on behalf of your customers or improve the efficiency of your dropship fulfillment, further information on the TrueCommerce dropship solution for suppliers can be found here.

Whether you are a retailer or supplier and would like more information on how we could help you, please contact us.