What is a Dropshipping Fulfillment Agent, and Why an e-Commerce Fulfillment Agent Might be a Better Option?

These days, starting an online business is easier than ever, but in some ways, it can be more confusing as well. This is because there are all types of e-commerce solutions available and it can be hard to decide which one is best for your company. If you’re asking, “what is a dropshipping fulfillment agent” and need to know the difference between the various types of fulfillment options, this article is for you. And if you’re looking to level up from using drop shipping fulfillment services to using an e-commerce fulfillment agent, this information can help you too.

What is Dropshipping Fulfillment?

Dropshipping fulfillment is often where online companies start because it’s a quick way to get their e-commerce store up and running. Dropshipping fulfillment means that you partner with suppliers and manufacturers of goods to ship those products when your customer orders them from you.

Essentially, you don’t have to keep any stock on hand and when your customer places an order, you send that order along to the manufacturer or supplier and they send it directly from their warehouse to your customer. You don’t have to purchase a large number of products and can actually order them one at a time as your customers order them.

Sounds pretty great, right? You buy the products at wholesale prices and sell them at marked-up retail prices so that your profit is the difference between the two prices. You may also have to pay shipping charges to get the product to your customer, but you can pass those fees onto your customer as well. If you’re just starting out with your business and have limited capital to invest in inventory, dropshipping might be best for you.

What is E-Commerce Fulfillment?

E-Commerce fulfillment is similar in one aspect to dropshipping fulfillment in that you don’t have to handle the actual shipping of your products. However, unlike with dropshippers, you actually do have inventory that you’ve purchased at wholesale prices from suppliers and manufacturers. A third-party e-commerce fulfillment company takes care of the labor intensive parts of getting your products into your customers’ hands.

This fulfillment option is right for companies that have enough capital to purchase a large amount of inventory and have faith that their products will sell. With e-commerce fulfillment, you can usually get a better price per item from your suppliers and manufacturers because you’re purchasing a large number in bulk rather than ordering products one at a time.

Main Differences

With either fulfillment option, you don’t have to invest in warehouse space or staff. But, with e-commerce fulfillment, you’re getting a more reliable supply chain because you’re handling the inventory yourself. You’re just outsourcing the labor intensive parts of packaging and shipping. Your orders will be fulfilled more quickly as well, resulting in happier customers who will likely return to your company again and again.

Conclusion

Depending on where you are in your business growth, it could be time for you to level up from dropshipping to e-commerce fulfillment by partnering with a Shenzhen e-commerce fulfillment agent for more reliability, better quality, and happier customers.