Shipping in Dropshipping Explained

This post will help you set up an efficient process for your dropshipping business and enable you to save tons of time.

Imagine handing over the orders that you get on your website to someone reliable who can order the products for you and ship them while you sit back and relax.

Imagine this partner handling your shipping issues and hassle while you just oversee? Oh, how easy would life be if that were true just for a couple of days!

But do you know all of this can become a reality? And not just for a few days!

Let me tell you how.

But wait!

Before we head over to see the true benefits of automating your dropshipping supply chain, let’s first have a quick overview of how shipping actually works in dropshipping.

Shipping Basics

Starting a dropshipping business will require you to partner with a supplier who can ship products directly to your customers when dropshipping. This means that you will need to have an agreement with the supplier regarding shipping. Most suppliers offer shipping services, but it's important to understand the details before agreeing to anything.

Some things you will want to ask about include:

·     What type of shipping service does the supplier offer?

·     How much does it cost?

·     Do they offer tracking information?

·     How long will it take for my order to be delivered?

·     What are the delivery restrictions (e.g., minimum order size)?

The fee is another important consideration for any dropshipper out there. Here’s how it works in dropshipping…

Fee Options

When it comes to shipping, there are two main fee options: flat-rate shipping and free shipping.

Flat-Rate Shipping

With flat-rate shipping, you pay a fixed fee for each shipment, regardless of the weight or size of the package. This can be a good option if you know that your products will fit into a certain size box and that the customer is within a certain geographical area.

Free Shipping

This option is when the customer pays nothing extra at all -- shipping included! You can set it up so that orders come with free shipping in exchange for buying X amount the first time around only, or if they buy Y dollars worth before getting their next one shipped free on top of whatever else was paid already.

International shipments are usually charged by weight, size and destination country - this means there might be different prices depending on where an order comes from internationally and what kind of item(s) being sent out internationally may cost too (not including customs duties).

Now, speaking of shipping methods…

AliExpress Dropshipping Methods               

AliExpress offers its buyers an array of shipping methods to choose from:

  1. AliExpress Standard Shipping – Tracking available. Paid + Free Shipping.
  2. AliExpress Premium Shipping – Tracking available. Paid Shipping.
  3. DHL – Tracking available. Paid Shipping.
  4. EMS – Tracking available. Paid Shipping.
  5. ePacket – Tracking available. Paid + Free Shipping.
  6. Seller’s Shipping Method – Paid/Free Shipping and tracking information depends on the seller.
  7. FedEx – Tracking available. Paid Shipping.
  8. Cainiao Super Economy – Cainiao is a Logistics company that belongs to AliExpress. Tracking is available through its Global Order Tracking website. - Paid + Free Shipping.
  9. Cainiao Super Economy Global – Tracking unavailable. Paid + Free Shipping.
  10. China Post Air Parcel – Worldwide shipping. Tracking available.The screenshot below is of the Taobao product page

Each seller on AliExpress decides which shipping company they want to work with. Some of those available are FedEx, AliExpress Standard Shipping, AliExpress Premium Shipping, DHL, China Post Air Parcel, etc. The seller’s shipping method is also available where the prices, delivery time, tracking information depends solely on the seller.

Categorizing generally, you will come across ordinary shipments, certified shipments, and shipments through private couriers. The ordinary shipment is very cheap; however, it does not provide tracking outside China. Meanwhile, the certified shipments can be tracked all the time and are common for more expensive items. The shipments through private couriers have very high costs and are mostly chosen for very expensive or urgent products.

To be real, the shipping methods provided by AliExpress are not very efficient due to several reasons. The shipping costs are high, and most of the time new dropshipping businesses cannot afford them. Even the delivery days can vary from the expected date, which can result in customer dissatisfaction and poor reviews.

Opting for free shipping can also be a hassle because you might not get the option to track your order and it can take several days before it arrives at the destination.

So, is there an option, which will solve these issues and help you run your dropshipping shipping smoothly? Introduce your business to Dropast. One platform to tackle all your dropshipping worries.

Dropast offers extremely affordable services to its clients with accurate tracking information on the go. Moreover, you can let your customers know the exact date they will receive their products because Dropast is very rigid about following the delivery deadlines.

Dropshipping Shipping Challenges 

Customs, Duties, and Taxes

Depending on the type of product you're selling or your supplier's policies, your customer might be required to pay customs and duties on shipments. 

Most countries have a minimum order value threshold for levying taxes, which varies from country to country. 

Cost

The cost of shipping is one of the biggest factors to consider when deciding whether or not you should use dropshipping. The price will vary based on where your product originates from, what kind of packaging it needs (if any) and how much is the size and weight.

Shipping Time

The amount of time it will take for your products to get from Point A to Point B is another important factor you need to consider when choosing a shipping carrier. If you're working with a tight timeline, make sure the company can meet your deadline; otherwise, your entire business could be put in jeopardy.

Order Handling

In addition to how quickly your product arrives at its destination, you'll also want to think about how fast the order is handled and shipped. Some companies can turn around orders quickly, while others may take longer. It's always best to ask before placing an order if there's any doubt.

Dropshipping Supplier's Location

Some dropshippers can ship internationally while others only offer domestic shipping within their own country's borders. If they do not offer international shipping, it would be up to you as an eCommerce business owner how much extra cost should come into play when calculating your prices for consumers.

Hence, handling shipping on your own can be harder than you think. Fret not - By collaborating with platforms like Dropast and automating your supply chain, you can easily get hold of all the factors we just discussed just now. 

Not sure how? Let’s take a look…

Benefits of Automating your Dropshipping Supply Chain

Walmart is one of the leading e-commerce giants in the world. In 2021, when Walmart’s sales grew by 79%, the company decided to invest a whopping $14 billion in automation of its supply chain! (Source) This statistic clearly shows the contribution of automation in bolstering business growth.

And this is the winning strategy that your business needs too!

There are many dropshipping platforms available that help you automate inventory management and fulfillment processes and therefore, reduce the effort that you have to put in for managing inventory and orders.

And isn’t that the dream?

Dropshipping platforms are a Godsend that helps convert your active income stream from your dropshipping business to a passive stream! From many options available, I will show you how Dropast is the service that adds the most value to your Dropshipping businesses’ supply chain.

Here are the benefits of automating your dropshipping supply chain and shipping through dropshipping platforms like Dropast:

Accurate Delivery Estimates

Let me tell you a stat that will blow your mind and make you believe in the power of fulfilling promises.

69% of customers are less likely to re-purchase from the same retailer if their order is not delivered within two days of the promised delivery date (Source). So, timely order fulfillment leads to customer satisfaction that is critical to business growth.

Apart from timeliness, a business model that runs according to plan can provide shipping estimates that decrease abandoned carts. About 24% of consumers abandon their carts if no delivery estimates are provided (Source).

Hence the power of accurately promising delivery times!

Scaling Warehousing and Inventory

Do you know what you need for a growing business? Capacity…thus, investment.

With Dropshipping platforms, you get access to inventory and warehousing without the need to extend huge amounts of capital and employee expenses.

They procure the orders in their inventory to help you quickly fulfill orders without the hassle and the expenses.

So, no need to fret about the incoming storm of customers that Dropast services will generate.

Reducing Order Fulfillment Expenses

As stated earlier, 70% of the cost of the product on average is just order fulfillment. With a partner dropshipping platform, your business can greatly reduce costs associated with

·         Receiving the product

·         Storing the product in a warehouse

·         Evaluating the product for any damages

·         Repackaging the product in appropriate packaging with a Store’s logo

·         Bundling different products for a great customer experience

·         Shipping the product to the customer

·         Providing order tracking

Plus, no hassle of dealing with employees, delivery issues, and human errors in inventory operations.

How does Dropast Work to Scale your Business

There are multiple dropshipping platforms available when you search. But to choose from a plethora of options is a daunting and risky task.

Many claim to offer easy and hassle-free fulfillment but are just a scam. Many offer meager and underwhelming services that impact your brand. So, how to gauge and address this risk?

Let me tell you how you can meditate and almost eliminate this risk…

A reliable dropshipping platform is what you need to automate your business operations and sit back and enjoy the passive income.

Dropast is one such platform that allows you to relax while your business operations are conducted efficiently. This results in two things:

  1. Satisfied customers
  2. Exceptional business growth!

But what exactly does Dropast offer that can make this happen?

Here is what Dropast offers which allows you to improve your business scalability and establish a brand value that allows you to enjoy better profits:

Quick Processing

Depending on the Taobao seller’s location, domestic shipping to the Dropast warehouse takes anywhere between 2-4 days.

From receiving the product in the warehouse to shipping it, Dropast has a quick mechanism that allows you to promise quick delivery to your customers.

One thing is for sure…this quick processing can become your selling point and help you secure more orders with Dropast. 38% of online shoppers were found to abandon their cart if the delivery takes more than a week.

Compared to just 8% abandoning the cart if the delivery takes 3 days or less (Source). With a quick turnaround, securing more shoppers means greater sales volume which we all know is the key to growing the business.

Inspecting Products

Customer experience includes the product and its quality. With a promise to fully automate your Dropshipping shippings, Dropast also allows the facility to inspect the products that arrive at the warehouse.

Thoroughly inspecting any product will assure that no broken or damaged products are being shipped to the customer which may be a cause of concern for the business.

Happy customers mean growing business...that’s the mantra Dropast follows and as a partner, allows your business to benefit too.

Reducing Shipping Fees

Shipping fee is calculated based on the package size and weight. Most times products that are dropshipped come in packaging that is oversized and, in some cases, damaged as well.

Dropast packages the product in packaging as small as possible to reduce shipping fees. This allows you to extend the benefit to your customers as well. A quarter of customers or 25% were found to abandon their shopping carts if they find unexpected shipping costs prior to checkout.

In another research, 63% of online shoppers were found to cancel a purchase because of the excessive shipping fee being one reason (Source).

Bundling and Packaging

Who likes receiving an order in bits and pieces? I am sure your customers don’t want this for sure!

Dropast bundles products for the same order from different Taobao sellers to provide a great customer experience and reduce shipping fees.

And there’s more to add to the customer experience!

With customized packaging that includes your store’s logo and a personalized Thank you card, you can increase your brand value in the customer’s perception.

And what good does that do?

Customized packaging helps your business to

·         Enhance customer experience

·         Increase customer satisfaction

·         Increase customer retention and return rate

·         Helps your business to grow in terms of volume and brand value

Shopify Integration

Once Dropast ships out the packaging, the tracking code is automatically updated. Therefore, allow your customer to know at all times when their order is on its way to them!

A transparent supply chain is how businesses have continued to differentiate and Dropast allows that differentiation for your dropshipping store!

Why is Dropast the Best Option for Dropshipping Shippings in 2022

Compared with other competitors, Dropast is the best option for Dropshipping shipments. Know why? Because it offers a reliable and convenient service for your business.

Now, do you see your life as a digital nomad seem more realistic than ever?

Before you delve into the perks of automating your Dropshipping business with Dropast, let me tell you how Dropast compares with the competitors:

Shipping Times

As I mentioned before, shipping times are one of the critical elements that help you to differentiate from the competitor stores and secure more orders.

With other competitors, the shipping times are uncertain. And we all know that an unfulfilled promise has a bad impact on customer retention.

With Dropast, you can be sure of the shipping times and promise your customer, with certainty, of the order delivery time, thus attracting more customers.

Weighing and Sizing

A reliable shipping calculator is how you can save up on shipping fees. Since the dropshipping platform will be your partner in shipping, assuring that their calculations are reliable is necessary.

We compared the same product (Product A) between Dropast fulfillment and competitors X and Y (we cannot say the name, but them are most used at this time) and got the following figures for the weight and size of the package:

As you can see, Dropast’s weight and package size for the same product (Product A) were lower than other competitors. This reduced the shipping fee calculated by Dropast.

Therefore, allowing to forward the benefits to the customers attracts customers. All this is made possible with Dropast’s reliable shipping fee calculator and packaging techniques.

Effective Inventory Management

Ordering products from multiple sellers for multiple orders require an inventory capacity that can be processed. This means additional capital investment and variable inventory running costs.

With a growing business, the need for proper inventory management software increases more than ever!

But what to do if you don’t want the hassle of handling inventory and warehousing?

Simple: onboard a dropshipping platform as a partner and improve your inventory management. This means;

·         Evaluating the product for any damages

·         Repackaging the product

·         Reducing inventory expenses

·         Bundling different products for a great customer experience

·         Quick order fulfillment

·         Providing order tracking

Summary

Running a business is a challenging task. And with most of the time and expenses associated with order fulfillment, a sound strategy is how you can maximize your margins as well as scale your business.

A Dropshipping platform like Dropast can offer benefits that help you convert your active income stream to a passive stream. Taking up all the fulfillment challenges that come with a Dropshipping business, Dropast is not a third party, but rather, a partner that helps you to automate your business operations.

This frees up time for you to sit back, relax, and strategize…in short, the important tasks!

Dropast offers quick processing, service for investing products for any damages, reducing shipping fees, and packaging the product. These services together offer a customer experience that is unmatchable.

How does your business benefit?

·         It helps differentiate your store from the competitors

·         It helps you make promises to your customers that you fulfill

·         It helps you to grow your business to heights never imagined!

Now isn’t that exciting? So, sign up for a free trial with Dropast and see how we streamline your shipping and fulfillment to allow you more time to relax while your business runs efficiently.

Start your profitable dropshipping business today!

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