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  1. #1
    SitePoint Member mortgages12's Avatar
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    Drop shipping inventory issues

    Are there any companies out there that let you hook your site up to their live inventory so you don't get orders for out of stock products?

    If not how do you deal with customers who order out of stock products not knowing it?

    I would think this would lead to much frustration, no repeat business and bad word of mouth.

  2. #2
    SitePoint Wizard silver trophy
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    It's probably the biggest problem with drop-shipping. I honestly prefer to manage my own inventory and keep stock on hand, but it does cost a lot more.

    Even if companies would allow you to "hook up" with their inventory, I doubt it would be any kind of standard. You would still have to find a way to port it into your e-commerce software or import it via a script run on a cron job or something. The technology on both ends would be a headache.

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    SitePoint Member mortgages12's Avatar
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    Quote Originally Posted by beley
    I honestly prefer to manage my own inventory and keep stock on hand, but it does cost a lot more.
    I was under the impression that the margins are a lot better if you do your own inventory?

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    He's No Good To Me Dead silver trophybronze trophy stymiee's Avatar
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    Quote Originally Posted by mortgages12
    I was under the impression that the margins are a lot better if you do your own inventory?
    I think Brandon means you have to spend more as you will have to buy your goods as opposed to buying it only when someone makes a purchase.

  5. #5
    SitePoint Member mortgages12's Avatar
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    Ahh, got it, thanks Stymiee.

  6. #6
    SitePoint Wizard silver trophy
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    Yes, that's what I meant. Margins are much better if you buy your own inventory. A lot (most probably) dropshippers don't charge anything close to real wholesale. If you knew the margins on most products, the true margins, you'd really be shocked.

    Even drop shippers who do offer decent margins often charge a "fee" for drop-shipping, and they almost always charge counter shipping rates so they pocket any shipping discounts also. It all adds up to be a lot in the end.

    If you have the money to invest in inventory, do it. Even if you dont' want to stock and ship your own products - there are fullfillment centers (we use one now) that will warehouse, pack and ship, even process returns.

  7. #7
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    Quote Originally Posted by beley
    If you have the money to invest in inventory, do it. Even if you dont' want to stock and ship your own products - there are fullfillment centers (we use one now) that will warehouse, pack and ship, even process returns.
    Do you have any recommendations for a good fulfillment center? How do they charge? Per package? Monthly? Is there a minimum number of items? etc...

    Thanks.

  8. #8
    SitePoint Wizard silver trophy
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    I use www.efulfillmentservice.com - they charge a flat monthly rate for inventory and then per package (plus shipping costs).

    They have rates right there on their website.


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