Drop Shipping?

[aubuchon]

For those that are using the drop ship method of order fulfillment for your ecommerce sites, how do you manage your drop ship programs in order to ensure high customer service?

Are any of you using a 3rd party middleware solution, or maybe an inhouse tracking tool?

Questions that come to mind are...

#1 How do I connect with multiple drop shippers that want to receive orders in multiple formats (EDI, XML, Email, Fax...etc)

#2 How do I get a confirmation that orders are received? And if not, how do I get alerted to potential problems (like not received, out of stock...etc)?

#3 How do I easily get tracking numbers from multiple drop shippers?

#4 How can I control the branding of the packing slip and and shipping label used by multiple drop shippers?

#5 How are returns handled?

Finally, does anyone know of a reputable list of drop ship companies in the US?

Thanks!

[msr986]

It seems like you have done a fair amount of thinking on this subject. Unfortunately, the only ones that can answer the majority of your questions are the companies that you intend to do business with.

If you find a drop-ship company that you are interested in, I'd ask them your questions.

I occasionally use drop ships, but each company has their own set of procedures.

[Essex_boy]

I cant find decent dropshippers for love nor money please if you have any ideas sticky me.

Thanks

[sun818]

With drop shipping, you are at the mercy of the drop shipper. Like msr986 said, each company has their own set of procedures.

#2 How do I get a confirmation that orders are received? And if not, how do I get alerted to potential problems (like not received, out of stock...etc)?

This is my only my second drop-ship situation. But the one I am working with now typically e-mails me the tracking number. E-mail also comes to me via UPS, FedEx depending on the drop shipper's order processing system.

#4 How can I control the branding of the packing slip and and shipping label used by multiple drop shippers?

If they drop ship, your business information will be in the "From" field, and your customer information in the "To". Some drop shippers even allow you to upload your logo as part of the invoice.

#5 How are returns handled?

That you'd have to ask them. I accept returns myself (because these items are light). But I know of other situations where the item is returned directly to the drop shipper and you are credited upon receipt.

Related Threads:
How does a typical drop-shipping arrangement work? [webmasterworld.com] (Jan 28, 2003)
New to Drop Shipping [webmasterworld.com] (Apr 17, 2003)
Getting started with drop-shipping [webmasterworld.com] (Feb 28, 2003)

[aubuchon]

Thanks for all your comments.

sun818, the related threads you included are fantastic.

Rather than managing the drop-shipping process on my own, I am considering hiring a third party to do it for me. Basically, I plug into them once, then they plug me into all my drop shippers according to all the various procedures that the drop shippers may have.

The biggest downside is COST. It would sure make my life easier though!

[juniperwasting]

When working with drop shipping you have to be 100% diligent. The customer does not care that the vendor did not supply you with current inventory, or that tracking emails did not make it back to you. In our small company, over 1/4 of the employees are dedicated just to maintaining communication with vendors.

Maintaining confirmations is vital, as is getting your orders processed and sent to the vendor on time. Tracking can be solved by having your vendors use your UPS account which will send the information right to you. All the UPS world-ship programs allow a shipper to use a 3rd party account to charge. This also gives you a good idea of average shipping costs per product.

[cfx211]

We have some drop shippers still in the fax age and it requires two people to keep track of all our drop ship business so don't go into this with the idea that these relationships are easy to maintain or that it will be a largely automated process.

[juniperwasting]

We have some drop shippers still in the fax age

Ughh, I know exactly what this means. We are trying everyday to convince these vendors to use e-mail, at least. Wish I could get them to handle an FTP flat file or XML feed, but that is pushing the envelope. If you go back through the logs, most of the vendor errors can be attributed to faxes getting lost.