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Drop shipping

Flexible assortment expansion in up to 24h feasible

The cost of storing goods is a key success factor for retailers: Making a wide range of goods available to customers at all times can be expensive. Instead of storing large, bulky items, seasonal products or goods with low sales volumes, retailers are now able to work with third party suppliers, known as drop shippers: In this scenario the manufacturer of the product that has been ordered, acting as a drop shipper, delivers it directly to the customer. This enables retailers to expand their range of goods, while reducing their internal efforts, lowering storage and delivery costs, and minimizing capital outlay.

The Simple Approach to Staying Connected with the Drop Shipper

Drop shipping is a particular challenge in Omni-channel sales: orders need to be taken across all analogue and digital channels, including the online shop, apps, direct marketing, catalogues, stores, market places and so on. All orders need to be synchronized and processed in the same way. The drop shipper module of an Order Management System can help with this challenge:

Web based

Once they have created an account and imported their product catalogue, the drop shipper uses a browser to access the retailer’s system. This simplicity means that it is perfectly possible to integrate a new drop shipper in under a day. Manual web-based access is ideal for suppliers with a light to medium order load, and who do not want to integrate their IT systems with those of the retailer.

Integrated

With larger volumes of orders a direct integration between the retailer’s Order Management System and the drop shipper’s IT systems is recommended: using a range of interface technologies, it is simple to integrate an OMS into the drop shipper’s system environment so that orders can be transmitted directly.

Staying in Control of All Processes

Once the retailer has created drop shipping partners within his Order Management System,  all following processes are fully automated: when an order is placed, the OMS knows which products the retailer will supply and which should come from the drop shipper. Without the customer needing to know, the Order Management System divides the orders into separate deliveries, taking account of all order channels. Thanks to this complete process integration, retailers do not need to worry about losing control of the fulfillment process – quite the opposite in fact:

Up to the minute

Corporate design compliant

Secure

Reliable

Professional

Up to the minute

So as to avoid supplier bottlenecks, drop shippers can keep their system fully updated on the availability of each individual product.

Corporate design compliant

The Order Management System creates all the relevant documents for the drop shipper to supply the goods, including invoices, delivery notes, return stickers – all using the retailer’s corporate design.

Secure

The retailer can control and manage all processes within an Order Management System so keeping full control at all times.

Reliable

As part of the process definition and layout phase, the retailer defines customer communication policies. The OMS then keeps customers automatically informed on the status, progress and delivery of their order.

Professional

The drop shipper accepts returns directly in the OMS and processes them from there, including sending the return label and automated customer communications.

Benefits for You, the Retailer

With an OMS you have a powerful Enterprise Order Management System.
Drop shippers can be added quickly and simply – An Order Management System provides the perfect environment for efficient drop shipping.
Integrate drop shippers seamlessly into your processes – while always staying in control of your business.
Use Omni-Channel commerce to sell your goods, regardless of sales channels and backend systems in place.
Expand and update your range of goods as and when you need to.
Sell large and bulky items more inexpensively, so reducing capital outlay. Save on storage and delivery costs.
Reduce internal efforts – your suppliers will co-ordinate delivery.

Your Contacts for Drop shipping

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Dr. Nasser Kaspari
Expert for eCommerce
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Pierre Bremehr
Expert for eCommerce