For a dropshipping retailer, the benefits (Modalyst’s 3Fs) are quite abundant, and hopefully quite apparent! However, to help you become a retailer that is fully informed about all things dropshipping, we want you to keep a few things in mind. Learn more at Modalyst.
The most important thing to remember is that the brands you are working with will handle most of the distribution logistics. When a customer places an order with you, the retailer, you can either have the information automatically sent to the brand or you can communicate the order details manually. However, regardless of how you do this, the moment the brand gets the order, it is the brand that becomes responsible for fulfilling the order. So, while you don’t have to worry about packaging goods, or coordinating with FedEx and other shipping providers anymore, the brand now does! Remember to work together with the brand to make sure all the details of each process – the order placement with the retailer, order communication to the brand, order fulfillment to the end consumer, and customer service management for end consumers – are clearly spelled out in your dropshipping contract to eliminate any confusion or potential for error.
Customer service management, for instance, is something brands and retailers sometimes overlook. Often times, retailers, given their involvement with the end consumer from a marketing and sales standpoint, will take the responsibility for customer service inquiries, such as returns, exchanges, or order adjustments. However, be sure to clearly delineate responsibilities with your brands. Openly distinguishing the responsibilities of both parties – brands and retailers – will also help you scale your business as you begin to work with multiple brands. The complexities of managing numerous relationships across various shipping zones and regulatory environments in the world will then be reduced too.
Next, as a retailer, it will be hugely beneficial to your business and profitability if you work with brands that are professional and committed to their own businesses too. In other words, be cautious of brands that are hobbyists and may not stick around to (or be able to) fulfill orders from customers. Often, this comes with experience and exposure to the industry, but curated marketplaces, such as Modalyst, which allow you to see designer showrooms online, can be a great way to filter out hobbyist brands and work with those that are likely to meet your requirements.
And that brings us to the last topic we’d like you to be aware of: the pros and cons of other marketplaces. Remember – some marketplaces, like Ebay, do not offer dropshipping as a feature of the platform, though there are ways to get around it. However, Amazon does have dropshipping capabilities and access to a very large user base and audience. The sales data and analytics Amazon provides are also quite useful. But, if you are using Amazon as a means to source brands or even host your store, just remember that there are listing fees for each item and often no longer term connection with end consumers.
Modalyst, on the other hand, was designed specifically for retailers and brands to “meet and greet.” With a fully automated solution for dropshipping, the logistics burden doesn’t fall too heavily on either the brands or retailers’ shoulders. Stay tuned to find out what special features may make the Modalyst platform the right solution for your store!