Top 3 Difficulties for Suppliers in Fulfilling Drop Shipping Orders
Although the majority of end users are concerned with the product’s brand, the shipping experience is critical. Drop Shipping may not be a new concept to you.
It is an order fulfilment strategy in which your retailers do not stock goods in order to sell directly to the public on a limited budget, but instead transmit their customers’ sales orders to you (Supplier/Manufacturer).
Once you have received the orders, you must ship them to the end user using your own order fulfilment process. However, be prepared to deal with the usual issues that may arise in the Drop Shipping industry in 2021.
However, contrary to popular belief, such issues inevitably arise and cannot be resolved manually. You’re not as exclusive as you think. Every individual provider, including those that outsource to 3PL firms, will have no influence over the supply chain. The three key hurdles for Suppliers in fulfilling Drop Shipping orders are as follows:
- Choosing the Best Courier Player
- Miscommunication regarding Order Details
- Handling an excessive number of calls on Status Update
We go over the three key issues that suppliers face when it comes to drop shipping. Continue reading to learn how to start a successful drop shipping business.
Choosing the Best Courier Player
Typically, the Drop Shipping Consumer location is an individual’s home rather than a business facility. As a result, all of the delivery issues connected with E-commerce delivery apply to Drop shipping delivery as well. To make matters worse, many delivery destinations are in Tier 2 and Tier 3 cities and towns. Traditional courier companies are unprepared to meet the challenge of last-mile delivery.
When your dispatch schedule includes different pincodes every day, it can be challenging to select a cost-effective yet serviceable courier. According to our analysis on a few providers, 4/10 shipments are not efficiently organized on a daily basis. Even the remaining six require extra time to select the proper courier partner.
When the volume of requests increases, manual labor becomes increasingly difficult. Be acutely conscious of your manual errors. Only a computerized system will be able to get you the best courier costs. It effectively recognizes order details such as Address, Pincode, Weight, Dimension, and TAT and recommends the best player to choose for your successful delivery. Furthermore, presenting the players based on your contract rate appears to be overwhelming. You have complete control over your shipments, unlike anybody else at your desk. Don’t be concerned about failure rates any longer. It is entirely feasible. All you need to do is select the best strategic shipping systems for your company.
Miscommunication regarding Order Details
Second, there is a communication lag as the store switches back and forth between you and the final customer. Because the majority of drop shipping customers are located overseas, communication is critical, both in terms of reaction time and mutual understanding.
Incorrect delivery information on your cargo label could result in unanticipated financial losses. If you are not completely sure in a possible customer’s communication skills, move on and continue your search from your retailer. Because the majority of clients submit orders via phone calls or Whatsapp. As a result, make sure to ask a lot of questions of consumers and purchase specifics to ensure your business develops tremendously without any outliers.
It is preferable to obtain confirmation of these order details from your shop before delivering.
- Model / Product Type
- The quantity
- Address for Delivery
- Mode of Payment
This will almost certainly not function during festival season when there are a greater amount of orders. To avoid this, have a strategy in place to complete all tasks prior to shipment. It is critical to send notifications to both the end customer and the store about shipment data and movement. If somebody disagrees, you’ll get a timely reaction and you’ll be able to avoid exceptions at earlier times, such as Returns.
For example, if you ship from your Assam warehouse, it could take up to two weeks to reach the customer. Send personalized alerts to both end customers and retailers on successful packing, courier connection, delivery, and other important information. This will keep them relaxed and wait for the successful delivery. Keep in mind that no one will be waiting patiently without any prior information.
Handling an excessive number of calls on Status Update
In this Amazon modern e-commerce era, everyone wants to know the clear status. As a result, the end user will anticipate a similar experience and will contact the retailer to inquire about the status. In turn, the retailer will contact you, the provider, to inquire about the status. This is not the end of the storey; your team must contact Courier to find out the status. Consider how many Retailers you are fulfilling Drop shipping orders for.
It will be a solid start if the end user can trace the package on their own. As a result, cargo status at various checkpoints must be communicated to end users by WhatsApp, E-mail, and Courier tracking number, as well as ETA:
This will help to alleviate the condition to some extent. Consumers will want to check the current status, at which point they will track on various courier websites, resulting in a terrible customer experience.
Although drop shipping provides complete anonymity to suppliers, you may provide a superior delivery experience to your end clients. A centralized tracking system for all. Simply put, you forward to a large number of players using a variety of tracking numbers. This will be quite perplexing for your internal staff, particularly the billing staff. As a result, ensure that all forwarded shipments have unique tracking IDs and that the public has access to a single gateway for tracking their packages. Both your order placer and order receiver will have a better order tracking experience.
Thus, the conventional issues you will experience in the Drop Shipping business in 2021 are described in the preceding session. Although your clients will focus on the product’s brand and ignore the buying experience totally, they will not give you orders the next time. Retailers will also not place orders with you. So keep in mind that you require a stronger collaboration with a software system to meet all of your requirements.
How ShypVisor Can Help You?
We at ShypVisor, built a Cloud based Shipment Management Software (SaaS) exclusively for Third Party Logistics (3PL) service providers, Supply Chain Service providers, C&F, Distribution companies. Salient features include Client & Vendor Rate contract management, Bulk order import through XL or API, Multi Courier Tracking, Bulk POD download, Claim management, Raising Client Invoice, Vendor bill validation, WhatsApp notification, Customizable MIS templates and many more. The software automates processes that otherwise require huge time, efforts, and manpower resulting in huge cost savings. There is no huge upfront investment required for the software as you can pay only for what you use on a monthly subscription basis. Get in touch with our experts for a quick tour of our solutions.