Drop Shipping Automation details the benefits drop shipping offers to growing small and mid-sized multi-channel retailers using QuickBooks.
Drop shipping has emerged as a popular, effective, and potentially lucrative way for multi-channel distributors and manufacturers to expand inventory offerings, maximize warehouse space, and reduce the purchase of slow-moving and stale inventory.
In 2018, the global drop shipping market size was valued at 102.2 billion USD and is expected to register a CAGR of 28.8% from 2019 to 2025. Simply put, the use of drop shipping by product-selling businesses of all shapes and sizes world-wide is not expected to slow down but continue growing rapidly.
Acctivate Inventory Software’s drop shipping automation tool makes it easy for growing distributors and manufacturers to maximize limited warehouse space, streamline in-house warehouse fulfillment, and expanding product offerings while reducing overhead costs and protecting profit margins.
Drop Shipping Automation: Maximize Warehouse Space & Streamline In-House Fulfillment
One of the most popular, and practical, reasons for drop shipping products is to maximize limited and/or precious warehouse space by reducing needed on-hand inventory to only high-volume items, as well as rare/one-off items. Opting to only store high-volume products and drop ship everything else via 3rd party suppliers is the best way to regain costly warehouse space and in turn, promote greater warehouse organization and efficiency.
An additional method of optimizing warehouse space is by saving the warehouse for small, fast-moving items, and drop shipping bulkier items direct from the supplier. No matter which approach is taken, any item that is drop shipped remains available to customers. The items are still sold, keeping available space open for what makes the most sense.
Optimizing warehouses for maximum efficiency by reducing certain portions of on-hand inventory allows for more streamlined in-house fulfillment. Relying on 3rd party fulfillment for drop shipped products can potentially boost customer satisfaction if the drop ship supplier offers faster or cheaper shipping than one can provide, but also leaves a clear path for high-volume, high-demand items to be fulfilled quicker.
Drop Shipping Automation: Expand Product Offerings
Not all businesses considering drop shipping automation are concerned about limited warehouse space. Often, the desire to introduce drop shipping into operations is to expand product offerings and/or reach into new markets. Again, choosing to expand product offerings through drop shipping preserves precious warehouse space, while also allowing a small business located in the United States to more easily reach customers in other parts of the world, depending on a drop ship supplier’s location. For growing multi-channel distributors and manufacturers, gaining new business through drop shipping could be a catalyst for further growth.
Drop Shipping Automation: How it Works
Acctivate’s drop shipping automation is pretty straightforward.
For example, a customer purchases five items from a business’ online store: 2 boxes of basic chocolate (on-hand inventory) and 3 tins of specialty popcorn (drop ship inventory). When the order is processed in Acctivate, a picklist via Acctivate will be sent to the warehouse to fulfill the chocolate boxes, while the 3 tins of specialty popcorn will be automatically set as drop ship in the system.
From Acctivate’s dashboard, the user will open Acctivate’s Drop Shipping Wizard, see the order items awaiting drop ship, and then with one click, the user can create a PO for the items and send it directly to the supplier. On the PO, the ShipTo address would reflect the customer’s address instead of the standard warehouse. And voila, all items in the order have been processed and will be fulfilled accordingly.
Get started today!
Discover how Acctivate simplifies all operations for the way you do business. Try Acctivate for free or call us at 817-870-1311.