Drop-Shipping

General information

Drop shipping now represents a new way to keep supply chains as short as possible. The selected products are put on display by retailers in stationary trade using samples or banners, as well as using traditional advertising and specialised advertising in e-commerce. Consumers are able to order the products either in the stationary trade or online. The manufacturer or wholesaler assume the role of delivering the goods to the consumers instead of the dealer.

The main difference here to conventional sales methods is the contactless reselling of goods from the manufacturer to the consumers without having been in the physical possession of the dealer. This serves to significantly shorten the supply chain, resulting in much lower logistic costs.

The consumer

The consumer benefits here from free, flexible home delivery, the possibility to return goods within two weeks in compliance with the Austrian consumer protection act and improved customer service. However, the customer must be content with a short delivery time.

The dealer

The dealer benefits here from a lucrative additional business without any logistical risks, meaning that no idle capacity costs arise as a result of unused capacities, as well as an increase in consumer purchasing power directly in stationary trading. Shorter delivery times and the lower risk translate into a much lower margin needed by the dealer. For dealers, drop shipping is particularly suitable for new products and promotional items.

The producer

Drop shopping offers producers and manufacturers an additional opportunity to sell goods even in slow months. Many producers are geared towards consignment orders or large-scale production, and they are unable to provide any warehouse space. Similarly, selling individual goods beyond a range of 1,000 km is considered to be uneconomical. As a result, producers are normally dependent on partners, wholesalers or external warehouses, a fact that is reflected in the final selling price.

Our service

At a glance:

  • Handling the entire process from submitting offers to after-sales service
  • Highly competitive prices directly from the manufacturer with no wholesaler
  • Perfect customer service
  • Optimum planning capability for our customers and partners

As a specialist in the seasonal segment for outdoor furniture and Christmas items, we offer our customers and partners over 25 years of experience in the market. Our core expertise is in looking after customers and suppliers that are active around the world.

Changing times means that we have developed a new, aspiring business model in which we bring together all the advantages of drop shipping both for our customers and producers, while at the same time significantly reducing the number of disadvantages stated.

Together with our logistics partners, we are able to supply all Central and Eastern European countries with couriers or forwarders, depending on the needs of the customer. It is often the case that acquiring goods via a wholesaler means that the selling price does not appear to be competitive because of the high margin. We connect manufacturer and distributors in B2B business and take care of the customer relations, order processing, distribution and after-sales.

 

The process

 

1. Advertising planning
We know precisely which products are on the market and sought by our customers thanks to our many years of experience in the market and close customer contact. We carefully select different products which we intend to include in our advertising planning for the coming season in consultation with our customers. Each selected article is defined in the advertising planning for a four-week period. Here we define the planned quantities for each product together with our customers. The producer receives a complete list between four and six months before the start of an advertising campaign with planned quantities for each product so that they may plan production accordingly.

2. Advertising period
We organise all of the required information from the manufacturers such as images, videos and texts that is needed by the dealers for the advertisements. Shortly before the advertising period begins, the dealers inform the consumers about goods on sale that are available during the promotional period of three to four weeks via the Internet, newsletters and printed media. In order to ensure the availability of goods, a lorry load is fetched from the producer and taken to our logistics service provider one week before the promotion period begins.

3. Order period
Consumers make concrete orders during the promotion period online or via stationary trading. The consumers’ contact details such as name, address, telephone number and e-mail address are stored digitally by the dealer, either in the shop or online. The promotion period during which the goods can be ordered is set at three to four weeks here.

4. Exchange of information
We receive the consumers’ contact details quickly and accurately thanks to our fully automated and standardized IT system. These are processed by our IT system and sent to our logistics service provider. This process is fully automated.

5. Logistics partner
Our logistics partner receives the delivery order with the corresponding contact information of the consumers. The goods are subsequently prepared for delivery and an individual delivery date agreed with the consumers.

6. Delivery
Delivery is normally initiated by our logistics partner between one and three days after receipt of the order. After successful delivery, we automatically receive a confirmation that the delivery has been dispatched. This is automatically sent in digital form to our customers.

7. After sales
The rate of return and supply of replacement parts for our product groups is normally under 2 %. If this should be the case, however, we offer direct delivery of replacement parts to the consumer.