Dropship is a combination of drop and ship. If a store owner uses dropshipping in their store then they don’t need to manage stock in their physical outlet. In dropshipping, the owner can choose warehouses to manage their product stock.
So whenever a customer purchases any product, that will be directly shipped from the nearest warehouse instead of the store address.
Dropship is mainly helpful in small store operators as they don’t have large space to stock their products. They just need to connect with the available warehouse in their region. And warehouses will manage the product stock inventory and shipping.
To use the dropship feature in an online store, the store owner needs to use the dropship extension. Once the module is enabled in their store, the seller can choose the warehouses and suppliers.
When a customer places an order, it will send to the store owner or seller. Then the store automatically escalated the order to the dropship warehouse manager, wholesaler, or product supplier who is managing the stock inventory.
Furthermore, the supplier prepares the order and shares the information with the store owner. Then the order will ship from the dropship warehouse directly to the customer.
Advantages of Dropshipping in Magento 2
Dropship has many benefits in terms of eCommerce stores. Where the store owner takes the advantage of these services in the store.
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The store owner doesn’t need to manage the product stock inventory.
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They don’t need additional space to keep their products.
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The product shipping will handle by the supplier or warehouse manager.
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The admin can assign multiple warehouses to a single product.
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The shipping cost will decide by the warehouse operator, which will depend on the distance.
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The admin can use CSV, XML, and XLS files to import multiple warehouse(supplier) products.
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To analyze sales the admin can view the warehouse(supplier) dashboard.
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The admin can create multiple shipping methods for different warehouses.
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Magento 2 dropship helps small-scale businesses to scale their business with less investment.
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Admin approval requires to manage the orders at the warehouse.
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The admin can mass assign/un-assign imported products to various warehouses.
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The admin can add/edit/delete any warehouse from their panel.
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The admin can also set the price rule for the warehouse.
If he talks about different platforms, then Magento 2, Opencart, Shopify, WooCommerce, etc. Every platform uses the dropshipping method to ease the process of shipping products and managing stock inventories.
Disadvantage of dropshipping
Every facility has some disadvantages in different manners dropship helps businesses apart from that, it also has some disadvantages.
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When a store owner uses dropshipping on his store, they don’t have control over order fulfillment and lead times.
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As you don’t have any product stock, that’s why you have to rely on the other suppliers or warehouses to complete your order.
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In this manner, the store owner gets less profit for the placed orders.
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If your supplier made the late deliveries, product damages, or wrong item delivery. it will screw up the order, and the customer will take it out on you.
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These mistakes break the trust between buyer and seller.
Incorporation with Magento 2
To incorporate dropship in your Magento 2 store you need to use an extension. The Magento 2 Dropship Extension provides the facility for the store owner to use the dropship feature on their Magento 2 store. So, the admin can choose the warehouses and suppliers to store and ship their products.
In Magento 2 Dropship, the orders will receive by the admin. Then they can forward them to the warehouse manager to fulfill the order. The warehouse manager will receive the order info and deliver the order directly to the customer.
The admin can add multiple warehouses for a product with the quantity. The admin can check all the connected warehouses to check the store business and growth.
In Magento 2 dropshipping, the admin can also integrate third-party eCommerce platforms like Aliexpress to fulfill the orders. With the help of the Magento 2 dropship extension, the admin can provide separate warehouse manager logins.
Dropship and Marketplace
Dropship and Marketplace are correlated things as it helps the businesses. If you have a marketplace, you can use a marketplace extension to provide the dropship functionality to the vendors for their stores.
With the help of the Magento 2 Marketplace Dropship extension, the store owner and vendors can save money which they will invest in managing stocks and shipping. So, it reduces the cost, especially for a new startup that doesn’t have much space and capital for the product stocks.
Dropshipping makes the whole order to shipping process easy. The store owner, you don’t need to worry about shipping, packaging, order status, tracking stock inventory, and managing stock level.
To introduce the dropship in the eCommerce store. The user doesn’t need much space or a dedicated area. The store owner and vendor can run their store from anywhere. They need to connect with the warehouse to fulfill their order.
Conclusion
All things about dropship discussed in the content have revealed how amazing this business model is. However, earning profits from a dropshipping business has never been effortless. Drop Shipping is a unique technique in which the store owners don’t need to maintain goods. Instead, they forward the orders to the suppliers who ship products directly to the clients.
WooCommerce Dropshipping is designed to make Dropshipping comfortable and hassle-free. WooCommerce Dropshipping is an effective store management tool for dropshipping stores.