When it comes to the shipping location, there can be numerous differences among online stores.
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:
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Shipping from your own warehouse,
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Shipping products from multiple own warehouses,
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Storage at suppliers with their own shipment,
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Storage at suppliers with their shipment (dropshipping), and
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Shipping through leased distribution centers.
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 (dropshipping)
With cloud-based stores and inexpensive Chinese products, dropshipping 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 like this: on wholesale portals such as Alibaba or AliExpress we find a supplier that offers dropshipping. We add their products to our store with our own margins, photos and descriptions, and when an order comes in, the supplier ships it directly to the customer. This looks favorable for the seller, but the model is considerably harder today than it used to be.
As the seller, you are legally responsible to the customer, not the supplier: you answer for delivery, conformity and refunds. For shipments from non-EU countries, expect:
- VAT and customs: since 1 July 2021 there is no VAT exemption for low-value consignments; for consignments up to EUR 150 VAT can be settled through the IOSS scheme; from 1 July 2026 a temporary flat customs duty of EUR 3 per type of goods in the consignment also applies,
- product safety: for products you import you must ensure compliance and a responsible person in the EU (General Product Safety Regulation, GPSR),
- the right of withdrawal within 14 days: this applies even when the supplier is on another continent,
- clear delivery times: if delivery takes three to five weeks, the customer must see this before buying.
So today the model mainly pays off with European suppliers with reliable lead times. More: Online store legislation in the EU
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.
Frequently asked questions
In Magento we configure allowed delivery countries in the settings. For each country or region we can set separate shipping methods and prices. If you want to deliver only to Slovenia, simply restrict delivery to SI.
Depending on the delivery partner. DHL, DPD, and GLS have API integrations with Magento that automatically calculate prices based on weight and destination. Alternatively, set up a matrix with approximate prices by zone.
It depends on your strategy and assortment. If your product is unique or price-competitive at the EU level - yes. Shipping costs to distant EU countries are higher, which needs to be factored into pricing policy.
With a clear shipping policy page listing supported countries and prices. Include a check in the cart and checkout to verify whether the address is in a supported region before the customer completes the purchase.
Yes - Magento supports in-store pickup as a delivery option. This requires setting up locations and business hours. Customers choose pickup as an alternative to delivery during checkout.
My name is Anže, I am a certified Magento solution expert and the maker of several award-winning online stores. I am the architect of all Degriz projects.
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