Direct shipping refers to a method of fulfillment in which products are sent directly from supplier to consumer, circumventing a physical store or warehouse. Shipping directly differs from drop shipping, in which goods are sold by a third-party retailer online and shipped by the supplier.
Depending on the products you sell, the size of your business, and the location of your customers, shipping directly may be a wise business decision or even a downright necessity. Find out how an efficient direct shipping system can maximize your company resources and customer satisfaction.
Direct shipping is especially advantageous for leaner e-commerce companies that are just starting out or have smaller order volumes. Its three main benefits are:
l Save on logistics costs
Direct shipping can help save money on supply chain expenses by giving control over product handling, storage, and shipping while eliminating third-party distribution center costs.
l Ease and convenience
There's no need for you to oversee the supply chain that involves warehouses or seller facilities. Once you provide the delivery information, the supplier will take care of the remaining process.
l Shorter transit times
Without intermediaries, your customers will receive their products much more quickly.
1. Dedicated logistics channel
Dedicated logistics channels (Russian special line, Middle East special line, American special line, etc.) Export cross-border special line logistics is generally sent overseas by air first, and then through cooperative logistics companies, express companies, etc., to carry out "door-to-door" in the destination country delivery.
The characteristic of special line logistics is to gather different customers and scattered goods first, combine them into a large batch of goods, and then send them by air, and then split them up and send them to the destination country (region). In this way, the cost of air freight can be effectively reduced through the advantage of scale. Therefore, its price is generally lower than that of international express, but its timeliness is not as good as that of international express. The dedicated line logistics model is essentially similar to the door-to-door model of traditional logistics.
2. The postal packet
Postal network basically covers the world, and the price is cheaper than other delivery methods. Based on the two advantages of wide delivery range and preferential price.
However, anyone who has done cross-border e-commerce knows that the speed of small postal parcels is slow and the packet loss rate is relatively high.
3. Dedicated Logistic
Dedicated logistics channels (Russian special line, Middle East special line, American special line, European special line, etc.) are usually transported overseas by air, and then door-to-door delivery in the destination country is carried out through cooperative logistics companies and express companies.
The characteristic of special line logistics is to gather the goods first, then consign them to the airline as a single ticket, and then sort and deliver them in the destination country (region). In this way, the cost of air freight can be effectively reduced through the advantage of scale. Therefore, its price is generally lower than that of international express, but its timeliness is not as good as that of international express.
Pro: Low investment costs
Retailers will be able to
Save on pre-purchased inventory.
Save on storing expensive inventory in expensive warehouses.
Sell a wide range of products from third party suppliers.
However, you may be missing out on an aspect that is very important to you - control.
Cons: Lack of Control
The biggest problem is the lack of control over inventory and shipping.
You're at the mercy of your suppliers, so if they run out of stock or take too long to ship, it can have a negative impact on your business.
You also have to rely on your suppliers to handle returns and exchanges, which can lengthen the time it takes to return an item. And that's something consumers won't tolerate.
Pro: More control
One of the biggest benefits of direct shipping is that it gives you more control over your inventory and shipping. You're in charge of how much of a product you want to hold and when you want to ship it, not your third-party vendor.
You can offer faster shipping times, such as same-day or next-day shipping, which consumers have come to expect as 33% of consumers have higher expectations for fast shipping after the 2020 pandemic.
Cons: Higher costs
Direct shipping requires you to invest upfront in inventory and warehouses to store it, which can be a significant expense.
You'll also need to manage and maintain your inventory, which can be time-consuming, sometimes complicated, and will most likely require you to invest in some type of inventory optimization software.
And, of course, you'll need to establish relationships with logistics partners to handle the shipping process.
eTower provides support service for various business models, such as international express delivery, postal parcels, and cross-border special lines.
With eTower's innovative logistics solutions, businesses can streamline their operations, reduce costs, and increase customer satisfaction. This platform offers a range of benefits, including real-time tracking, transparent pricing, and efficient customs clearance. Furthermore, eTower's team of logistics experts can provide tailored solutions to meet each client's unique needs, ensuring that their shipments are delivered on time, every time.
If you want to know more information about direct shipping information and other applications, welcome to contact us, please visit our website at https://www.etowertech.com/ . We will be happy to help you out!
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