During this pandemic time, retailers and brands are continuously exploring alternative business models for optimizing their order fulfilment process without compromising on customer satisfaction. As a result, dropshipping has become an increasingly popular business model
What is Drop Shipping
Drop Shipping is a business model where retailers sell their products without owning or stocking inventory. Retailers rely on suppliers(manufacturers/distributors) who produce, store and ship goods. Retailers on receiving order from customer forward them to suppliers. Suppliers take care of order fulfilment - make stocks ready, packs them and ship them to customer.
Buying or renting a warehouse to store stocks requires huge capital investment. In case of dropshipping, as there is no need of stocking, your warehouse expenditure is significantly reduced. Your cost of buying and storing inventory is zero as order fulfillment is passed to suppliers. You can sell different categories of products without the risk of carrying inventory.
Just like every coin has two sides, dropshipping also has its own set of disadvantages. Customer experience may badly get affected when the suppliers run out of stock or send incorrect or damaged product. Also, any delay in delivering the shipment by a logistics partner will lead to losing the order or might result in even losing the customer.
How Naanal helps DropShipping Customers
At Naanal we help retailers by picking goods from the supplier, handing over the shipment to appropriate logistics partners who provide remarkable service based on the pincode and follow-it up until delivery. As this is a very competitive domain, delivering on-time without damage improves the customer experience manifold which in turn increases sales and stickiness. Right now, this dropshipping is available in Chennai and we are planning to expand to Bangalore and Hyderabad in the first quarter of 2021