Drop shipping is a special retail fulfillment method in which the retailer doesn’t keep goods in stock. Instead he transfers customer orders to the wholesaler (in some cases, manufacturer), who ships goods directly to customers. As a result, the retailer merchant never handles the product. Drop shipping is easy to get started and requires much less capital than other retail methods. The other benefits are quite low overhead expenses, wide selection of products, reduced risks, location independence and high scalability.
The biggest disadvantage of Drop Shipping is low margins. There are also different inventory issues and shipping complexities, caused by the fact that you’re sourcing from several warehouses, which are also working with other merchants. If you are going to implement Drop Shipping in your online business, you can empower your e-commerce store by installing the correct Magento extension.
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This Magento extension streamlines communication between dropshippers and online stores. As a result, you get the ability to track shipments and orders handled by your dropship company or vendors. uDropship by Unirgy has a user friendly interface and all the features necessary to get the most out of Drop shipping. The extension is not cheap – it costs $950.
By installing Dropship, you can assign each of your products to the warehouses it ships from. As a result, it is extremely easy to update the information about all your products. You just need to add the new information in the warehouse listing. With WebShopApps Dropship, it is also possible to automatically email all your warehouse with order details. You can purchase WebShopApps Dropship for $820.
This extension gives you the ability to sell products through several drop shippers, suppliers, and vendors. Multiple Vendors Drop Shipping provides each supplier with his own account, so it is extremely easy to manage multi vendor products with the extension. It is also possible to add different shipping methods and options for every vendor. As a result, shipping costs can be calculated according to each vendor location. Multiple Vendors Drop Shipping is less expensive than previous two Magento extensions and it costs just $199.
This extension links your e-commerce Magento store to the DropShip Commerce – a flexible and robust platform with different applications and tools tuned to address the needs of an online supply chain. By installing DropShip Commerce Connector, you enables product, inventory, and purchase order integration between your store and the platform. All the aforementioned functionality costs $995.
Ultimate Vendor Dropship Magento extension splits orders and sends suppliers emails, XMLs, or CSVs. The module lets you “do the fun stuff”, leaving shipping to different warehouses. Ultimate Vendor Dropship is the cheapest extension in our list, it costs only €149.