How Does Drop Shipping Help Save Your Time & Money?

When you purchase on CFM online store, you will find an extra service of drop shipping after selecting the shipping method. So what exactly is drop shipping, how does it work and how will it help save your time and money?

 

When it comes to drop shipping, it usually means products are produced and shipped by a white label manufacturer directly to the retailer without going through the distribution channels. A distributor/reseller purchases from a third party (a manufacturer), and then the manufacturer ships the products directly to a customer.

 

Drop shipping is regarded as a light-asset and low-risk model since it allows you to save the running cost and enjoy zero inventory. That is to say, if you have a business, you just need to have a marketing channel and focus on marketing & branding, then a third party will help you with the fulfillment and ship the products to your customers without showing any of its branding info or under your brand.

 

What makes drop shipping fit your business? 

First, drop shipping can increase the efficiency of shipping. Usually, it takes a shorter time in delivery when shipping from manufacturer to customer than shipping from the manufacturer to distributor/reseller, then to the customer. 

Second, when adopting drop shipping, you don’t need to assign a certain person in charge of the repacking and reshipping, which can save your time, labor cost, and as well as the reshipping fee.

Third, inventory would be a big issue for many companies because it requires you to build a good inventory management system and have a good cash flow. Drop shipping can help release your pressure on the stock, so you can run your business more flexibly.

 

Of course, dropping shipping is not suitable for all businesses and there are some disadvantages you should consider, for example, a highly reliable supply chain should be guaranteed when you choose drop shipping.

 

By introducing the IoT tech and digital management system, CFM has built a smart workshop with a complete and resilient supply chain. And drop shipping service is available for orders shipping by FedEx, UPS, and DHL.