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Catch Profits by Drop Shipping

I have spent over a decade working with companies of all sizes. One thing every company wants to know, regardless of their size, is how to reduce expenses.

Most companies start by looking at the very end of their supply chain. They try to squeeze pennies out of their transportation spend, which generally doesn’t provide the results they’re looking for. Soon they realize that they need to look at broader alternatives to improve their bottom line: reduce costs or increase sales.

One way to do both is to drop ship. Drop shipping is selling directly from someone else’s inventory – this allows you to infinitely expand your product selection without incurring the risk of purchasing more than you can sell. You also don’t have to worry about inventory carrying costs and storage expenses that could negatively impact your company’s bottom line.

Online marketplaces utilize drop shippers (they refer to them as resellers) to move substantial amounts of their expanding product mix.  This allows them to have unlimited product reach without the limitations of space. This approach tends to reduce out of stock situations as well since you don’t have to carry as many stockkeeping units (SKUs) and don’t have to worry about inventory management.

A large part of drop shipping success is having a consistent consumer experience. With solutions like UPS Quantum View, companies can focus on growing their sales and have visibility of their shipped goods whether it leaves their warehouse or someone else’s. UPS Quantum View can also notify customers that their orders are on the way and UPS My Choice gives them the control to receive home deliveries on their schedule.

Drop shipping is just one of many operational strategies to reduce costs and increase sales. To learn more about how UPS can help improve your bottom line results, contact your UPS account executive or fill out this form.

Category: Business Insights, Logistics
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