Introduction to Drop Shipping Integration - Working, Process and Benefits

  December 22, 2020       By Ray Atia

What is Drop Ship?


Drop-shipping is a fulfilment method where retailers do not carry the products in their stores or warehouses. Orders ship directly from the vendors.

In other words, a drop shipping business is when an owner finds a list of suppliers to supply products for their website to market and sell. However, instead of the business owner holding the inventory, there is a third party that handles all the shipping as well as logistics for the original business holder. This third party is typically a wholesaler, who “Dropships” the product to the customer on behalf of the business itself.

At the most basic explanation, every time some customer buys a product, the wholesaler — who typically manufactures the product — ships that product, and you get a portion of that sale for marketing the product.

How Drop Shipping helps can be understood from below mentioned points as to how, as per its details, is beneficial:

  • Offer more products without the need for excess inventory
  • Test new products without bringing it to inventory.
  • No excess capital tied up in stock.
  • There won’t be any payments for storage and associated bills of storing inventory.
  • With Drop Shipping, there won’t be any need to pay for a warehouse or related equipment & staff.
  • The need to receive stack, store, pull, pack, or ship products ends with Drop Shipping.
  • The average profit of manufacturer is higher than a manufacturer who uses traditional channels.

Benefits of Drop Shipping

Below mentioned are the benefits of Drop Shipping:

  • Drop Shipping is easy to Start
  • Drop Shipping is easy to Grow
  • Drop Shipping does not demand a lot of investment.
  • Drop Shipping is Flexible
  • Drop Shipping is easy to manage.
  • Drop Shipping can provide wide selection of products to sell.
  • Drop Shipping helps easy scalability.

Is Drop Shipping Profitable?

There are multiple ways to start & thereafter expand a drop shipping business. With that, few of the people who started drop shipping businesses are making a few extra hundred bucks per month, while few others have grown in huge multiple six-figure stores. Whether one is looking to start a drop shipping as an introduction of their business into ecommerce or a business model specifically that lasts forever; it is very important to understand how it can be profitable to you for your requirement.

Amosoft gives you a wide range of details as to how adapting drop shipping business help you to grow at a good pace.

Drop Shipping Process

The whole process of Drop shipping is a well-planned 10-step process:

  1. Purchase – Customers makes an order at the retailer’s website.
  2. Order Confirmation – Retailer sends an order confirmation email to the customer.
  3. Order Routing – Retailer routes the order to the product vendor, typically via a purchase order.
  4. Vendor Acknowledgment – Vendor acknowledges the order.
  5. Branded Packing – Vendor prints a branded packing slip, customized to retailer’s specifications.
  6. Fulfilment – Vendor Picks, Packs & Ships the order directly to the customer, avoiding transit through the retailer’s distribution channels.
  7. Advanced Shipment Notice – Vendor generate a shipment update along with a tracking number and sends it to retailer.
  8. Shipment Confirmation – Retailer sends an order shipped update email to customer.
  9. Invoice – Vendor sends an Invoice to the retailer.
  10. Receipt – Customer receives merchandise bought online at retailer’s website.

EDI/Automation documents for Drop Shipping

For all EDI processes, there are set of pre-defined or rather standard Documents. For Drop Shipping as well, there is a set of EDI documents that is helpful for the process to take place smoothly.

For Drop Shipping the documents include:

EDI documents – 832, 846, 850, 855, 860, 865, 810, 856, 870 and 180.

Introduction to Amosoft

Amosoft offers a scalable, secured and most efficient EDI Integration solution to meet the business needs. We have a very business friendly EDI solution for getting your business adapt Drop Shipping. Amosoft is an expert in building a system wherein it will work on your online presence and it provides platform for the businesses to grow not only smoothly but exponentially. Using our in-depth experience of EDI integration solutions, we have designed a managed service solution which can be tailored to meet all the minute requirements of your business and explain you as to how adapting Drop Shipping can help your business to grow.