No matter how lucrative the idea of online business sounds, it is an enterprise that will come with its own set of problems and challenges. One of the major challenges of an online business will be the task of procurement, inventory management and final transportation of the product to the destined location of the customer.
These are a set of tasks that is often looked upon as a massive hurdle by all the entrepreneurs who are looking forward to starting their own online business through E-commerce platforms like Shopify.
The current article will delve into the various methods and processes of online business where you can set up your own online website of business without involving the hassles of managing inventory, procurement and then the final shipment of the product.
Dropship—The Best Way To Go About For A Hassle Free Online Business
First and foremost please do away with the fear of having to handle the entire hassling process of inventory management and shipment all on your own. This is a task that can be dodged completely and can be rested on the shoulders of professionals who are trained for the job.
The process of dropship is one of the most tried and tested ways through which you can sell products online through informative and interactive business website on ecommerce website development services like Shopify Gold, without having to worry about inventory or that of transporting of the item to the determined location. As per this process, you as the owner of the online brand do need to enter into a contract with a vendor or a distributor.
Once the customer does orders something from your website, you can expedite the same to the vendor, who then arranges to ship the package to the customer’s address. When the product is delivered the package will have the name and the logo of your company and not that of the vendor. In lieu of this service, you are to make a percentage of payment to the vendor or the distributor.
Some of the best benefits of this process are that you need not worry about the problem of procurement or that of inventory and delivery. However, your percentage of income will be low as a huge amount needs to be given to the vendor or the distributor.
3PL—Enjoy Business Without Tension
The term 3PL is a very common one in the arena of virtual or online business. The full form of 3PL is 3rd party logistics. In this system, you need to procure the product of your brand or all the items that are available under the umbrella of your brand. Then this entire lot is sent to another third party logistics company. These are the companies who are professional inventory and warehouse managers and can transport and ship products and items to various parts of the world.
The biggest advantage of this process is that all you must procure and send all your products to the logistics partner of your business. From here on you just need to transpire all your orders and their delivery locations to which your logistics partners will arrange to send all the determined products.
The entire hassle of inventory and warehouse management along with transportation, is handled by the 3rd party logistics partners of yours.
However in this type of operations, one of the biggest problems is that you do not have any control over the movements of your products. Hence even if there are delays that you cannot do much to improve the situation.
A good tracking system and GPS tracking device are imperative. However, the cost of this business settlement happens to be low and all you need to do is to make a monthly payment to your logistics partners.
Amazon FBA—A Popular Choice
The term Amazon FBA stands for ‘Fulfillment by Amazon”. In this process of business, you need to send all your products and items to Amazon. Amazon is one of the most trusted names in the arena of online business.
They are the people who have a very large customer gamut or base throughout the world and their professionals can take care of all the functions related to inventory management and transportation and logistics of goods.
In this system of business, you need not worry about any operational hassles. However, you will have to abide by the rules and the regulations of Amazon, will have to share a huge part of the profit with Amazon and also the name of your brand will never gain eminence. To the customers, it will always seem that it is Amazon from where they are getting their products.
It is best to use ecommerce website development services like Shopify to do the job hassle free for you.