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Shipping location

When it comes to the shipping location, there can be numerous differences among online stores.

Shipping location

The higher the sales volume and the more products you have, the more specific and complex your product storage and logistics need to be.

We have various ways of shipping products:

  • Shipping from your own warehouse,

  • Shipping products from multiple own warehouses,

  • Storage at suppliers with their own shipment,

  • Storage at suppliers with their shipment (Drop-Shipping), and

  • Shipping through leased distribution centers.

spletna trgovina distribucijski centri

Own Warehouse

In the case of your own warehouse and inventory, the entire logistics process for shipping is relatively straightforward because you have all the inventory in one place. You need to ensure that you actually have all the products in stock. For this purpose, it is necessary to periodically take inventory to keep the data up to date.

The system for locating products must also be as simple as possible so that you can quickly find, pack, and ship the products.

Multiple Own Warehouses

In the case of having a larger number of own warehouses, you need to change your processing methods, as shipping from different warehouses could incur additional costs. When a customer orders products from different warehouses, you should send them separately only if you don't have an internal logistics system in place and need to ship the ordered products together from a central warehouse. You need to have a well-organized logistics system to ensure that customers do not have to wait longer than necessary for their ordered goods, especially in cases of personal pickup options.

In the case of the option for personal pickup, you can also display stock levels of products by location.

Storage at Suppliers with Own Shipment

The most economical way to minimize delivery costs is to sell products from the supplier's stock. In this case, you need to have well-synchronized inventory management. When delivering, you also need to consider the time it takes for the supplier to ship the ordered products. Reliable suppliers and efforts to address stock shortages are crucial for this mode of operation.

Upon receiving an order, individual products are ordered directly from our supplier, either manually or automatically (depending on the system). When all items are received, they are shipped together in our packaging. In this case, delivery takes a little longer, but it differs from having your own storage only in cases where we don't receive many orders from the supplier but rather individual shipments.

Storage at Suppliers with Their Shipment (Drop-Shipping)

With cloud-based stores and inexpensive Chinese products, Drop-Shipping has seen significant growth. Many stores sell products without the need for their own inventory and shipping logistics. This method is mainly favored due to low entry costs and easy system setup.

The entire process works by finding a cost-effective supplier with Drop-Shipping capabilities on wholesale portals such as Aliexpress or Alibaba. With their help, you add products to your online store, typically with significantly higher margins and additional images and descriptions tailored to your store's customers. When an order is placed, the supplier receives the order details, processes it, and ships the ordered products directly to the customer. This system is quite favorable and cost-effective for the merchant. However, its downside is the lack of control over the quality of shipped products and the inability to personalize the shipment or include additional marketing materials.

In many cases, the entire shipment of products comes from China, where this method of selling is very popular. Unfortunately, it can also be quite slow, affecting longer delivery times and customer dissatisfaction.

Leased Distribution Centers

The option of having your own inventory in a leased distribution center also simplifies the distribution of your products because all orders are processed at the leased center, and products are shipped from there. This method is very popular due to low shipping and order processing costs. In many cases, leased distribution centers are also quite flexible and allow for shipping in your own packaging, along with promotional materials.

Stop browsing. Start selling. Contact me now at anze@degriz.net.

My name is Anže, and I am a Magento certified expert in solutions and a creator of multiple award-winning online stores.

I am the architect behind all Degriz projects. You will surely come across me if we collaborate. Even though the phone keeps ringing, you can always tap me on the shoulder if you need advice regarding online stores and their functioning.

I specialize in building custom online stores and I am a master of unique techniques to enhance conversion on your website.

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