Dropshipping
The term “dropshipping” does not have a specific definition in the Royal Spanish Academy (RAE) since it is an Anglicism and comes from English. However, it is commonly used in the field of e-commerce and logistics to refer to a business model in which the retailer (seller) does not have the products in stock, but rather purchases the products in bulk from a supplier or wholesaler.
What is “Dropshipping” in Logistics?
This model has important logistical implications, since the retailer does not handle the warehousing process or inventory management. The supplier or wholesaler assumes responsibility for keeping the products in stock and managing the logistical aspects of delivery.
Guys
Classic or Standard: In this model, the retailer (dropshipper) accepts orders from customers and transfers the information to the supplier, who is responsible for packaging and directly shipping the products to the customer.
Aggregated: In this case, the retailer works with multiple suppliers or wholesalers to offer a broader range of products. Products from different suppliers are displayed on the same sales platform.
Direct Manufacturer: Some dropshipping retailers work directly with the manufacturers of the products. This can reduce costs and improve efficiency by eliminating a middleman.
Features
It has several features and advantages that can be beneficial for logistics companies, such as Ground Control, when using this model. Here are some features and how a logistics company could take advantage of them:
Inventory Reduction: There is no need to maintain large inventories, as products are shipped directly from suppliers to the end customer. Ground Control can take advantage of this to reduce costs associated with storage and inventory management.
Expansion of the Product Catalog: By partnering with various suppliers, Control Terrestre can offer a wide range of products without having to keep them in stock.
Focus on Logistics and Efficiency: By outsourcing inventory management and shipping direct to the supplier, Control Terrestre can focus on its logistics capabilities and improve efficiency in the supply chain.