I’ve been getting a lot of questions about drop shipping lately.
Advantage: You Don’t Stock Products and you don’t have to deal with shipping.
Drop shipping is a fulfillment method whereby the store doesn’t stock the product it sells. Instead, the product is shipped from a third party, usually the manufacturer or a warehouse.
- The store handles all the money. If you have WooCommerce the customer payments are taken via a payment gateway such as PayPal.
- The store handles all the customer service – the drop shipper/fulfillment company has no interaction with the consumer.
- The drop shipper handles all the fulfillment of the order, packaging, shipping and returns.
- If you have WooCommerce, we recommend their drop ship plugin for $49 which automates the messaging for fulfillment: Click to review the plugin
- MacKenzie Arts & Design can install this plugin (or any plugin) for you and help you configure your wooCommerce shop. Contact MacKenzie for a quote.
When a customer buys a product linked to a drop shipper
- WooCommerce sends the shipper or fulfillment center a message that a product has been purchased.
- WooCommerce also sends the shipper a PDF packing slip to make shipping easier.
- The shipper then sends the product to your customer.
- You (the shop) will pay the shipper/ fulfillment company according to a contracted payment arrangement which is often net-30days (although all kinds of arrangements can be made).
- WooCommerce will provide reports to assist with payouts.
The stock is the biggest issues. If the drop shipper is out of stock, the shop (not the drop shipper), must manage things with the consumer. This could be in the form of a refund, credit or backorder. If there is a missing order or shipping problem the shop is also responsible for handling all the customer service. The drop shipper or fulfillment company has no interaction with your customer.
WooCommerce has a guide Click for the WooCommerce Drop Ship Guide