This fun guest posts comes to you from our friends at Red Stag Fulfillment
Drop shipping gets a lot of hype these days. But what exactly is it, and how is that different from traditional eCommerce fulfillment?
The biggest difference between drop-shipping and fulfillment is an eCommerce business doesn’t purchase or handle inventory before the sale. Your supplier holds onto inventory until the moment you make a sale. This is a huge advantage for startups or other cash-strapped businesses that don’t have a lot of cash flow, because they don’t have to tie up loose change on extra inventory.
On the flip side, fulfillment means owning the inventory and storing it in your garage, through an Amazon warehouse, or fulfillment center such as Red Stag Fulfillment. Since you purchase a bulk amount of inventory up front, the initial cost is higher but your margins are better and you have more control over how much you have in stock. If you’re a Game of Thrones fan, you’ll appreciate this quick video explaining two of the most common online businesses work.
About the Author
Jake Rheude is the Director of Marketing & Business Development for Red Stag Fulfillment, an eCommerce fulfillment service provider in the US focused on serving eCommerce stores shipping large or heavy parcels where DIM weight can be a serious issue. With fulfillment houses across the US and international shipping capabilities, RSF is here to allow you to focus on growing your business, not putting out fires in the warehouse.