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Why Companies Do/Don't Drop Ship

by Hunting
3 replies
  • ECOMMERCE
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Hey im curious as to why some companies do drop ship but other companies don't? What is the reasoning why some companies dont drop ship?
#companies #do or dont #drop #ship
  • Profile picture of the author RWBiggs
    Every company is different and will have their own reasons to drop ship or not to drop ship.

    Take the case of a manufacturer, they want to sell mass quantities at one time and ship to one address versus selling 1 or 2 items at a time and having to ship these 1 or 2 items to mass shipping addresses. If the company is not set up to ship 1 or 2 items at a time it might become a headache that they prefer not to have.

    On the other hand, a distributor or retailer may very well like to sell via drop ship and their shipping dept may be set up to handle the 1 or 2 items sales and shipping.

    I don't know if that answers your question or not, but I tried.
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    • Profile picture of the author LeatherDropshipping
      I am probably in a pretty good spot to answer that question for you from a manufacturers prospective.

      First, most customers buying in bulk typically have one thousand or five thousand+ identical products all going in one box, in one shipment, to one location. Honestly, it is much easier for for manufacturers to work this way. Large volume orders, single shipment, large dollar invoices are the norm for the majority of the manufacturing world. The time it takes to prepare one drop shipped order is not significantly less than to prepare 100 or 1000 bulk products for direct shipment to one place.

      Drop shipping hundreds or thousands of different products requires a specially trained workforce, larger on hand inventories and specially configured manufacturing lines specifically set up for repackaging and white labeling where need. Many of these lines are dedicated to certain types of products and are not necessarily easily interchangeable for other types products. As a topper, drop shipping and white label manufacturing requires a supreme dedication to quality and accuracy of orders at every step. That means a more specialized and highly trained workforce.

      Finally, another reason why is some manufacturers are undoubtedly "old school". Many more are just not aware of the opportunities that quality eCommerce partners can bring.

      Hope that helps!

      - Leather Drop Shipping
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  • Profile picture of the author tiana with ecomdash
    In a nutshell, I think it boils down to how much hands-on involvement an individual may want within their business. If you fulfill orders and ship products yourself, you have more control over the fulfillment process. You can perform quality assurance checks, add in customization like creative packing slips or packaging, and oversee when items get out the door. If you dropship, you lose some of this control, but gain freedom in not having to store items yourself or worry about shipping the products. Both are good options - there is no right or wrong, and you may switch to dropshipping as your business grows. If you chose to dropship, just be sure to properly vet any dropshippers or suppliers you'd like to work with. They are taking on a big portion of your business, and you want to ensure they will carry out operations in a way that positively reflects your brand.

    Tiana with ecomdash
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