Dropshipping: a new business frontier
A flexible sales model that reaches ever further
Have you ever heard of dropshipping? It’s a business model for e-commerce activities where the seller does not need to have a physical warehouse, because goods are drawn directly from that of the wholesaler, manufacturer or distributor. In this way the retailer can outsource inventory, packaging and shipping services – thus focusing exclusively on commerce, marketing, advertising and all other activities necessary for customer loyalty.
From e-commerce shopping cart to doorstep with just one click
But what happens behind the scenes when the retailer uses the dropshipping sales model? The shop takes care of the sale and promotion of the products, leaving the dropshipper to handle the order processing. This process is managed by automated systems that automatically send a notification to the dropshipper with each transaction so that it can handle the shipment. Dropshipping therefore differs from other types of online distribution because it introduces a third actor into the sales process: the dropshipper, as the goods supplier, is added to the seller and buyer of the product.
Benefits and opportunities – always at the customer’s service
What are the benefits of this type of commerce? The most important is certainly that it saves resources and money in the physical management of a supplier’s own warehouse: there is no need for large storage spaces for collections that generally have to be purchased in various sizes and large quantities to cope with diversified demand. In short, dropshipping makes it possible to significantly reduce the logistics costs for a retail business.
As the entire shipping process is handled by the dropshipper, this business model allows the retailer to focus primarily on product advertising and customer loyalty so as to optimise the sales experience.
It is a flexible and efficient way to manage a wider brand portfolio and is suitable for all retailers who operate their own e-commerce sites.
NaturalLook has the know-how and most appropriate solutions for dropshipping-type distribution: large warehouses, assorted stocks and integrated supply chain management, from packaging to shipping – for an extensive service throughout Italy.
