Dropshipping has become an increasingly popular method of delivering goods to customers in recent years. When done right, it’s not hard to see why. Successful dropshipping benefits the customer, retailer, and product vendor. The problem is managing all the extra paperwork and logistics that comes with dropshipping can create a tangle in a hurry. That’s why so many retailers shy away from the method or abandon it entirely. AccountingSuite™ understands these pains, which is why we offer dropship accounting tools that far exceed anything else you’ll find on the market.
Why Dropshipping Works
For those unfamiliar with the term, dropshipping is a way for retailers to sell goods to customers without having inventory on hand. Rather than ordering products to stock the shelves or sit in warehouses waiting for an online order, the retailer contacts the vendor. In some dropshipping cases, the customer will pick up the item from the retailer. More often, they receive it directly.
You may be wondering why a vendor would agree to dropshipping. Don’t they want to get rid of the inventory? Well, yes and no. Regardless of whether they hold the inventory for a retailer or not, vendors, distributors, and wholesalers aren’t in the business of reaching out to end users. That’s what retailers are for. In a world where people looking everything up about a purchase online and often buy without ever laying eyes on a product, where the inventory is stored can be incidental.
For the retailers part, dropshipping allows them to lower cost and curate a better product mix. Holding inventory is expensive, risky, and limited to the space you have. A dropshipping model allows you to offer everything you want to your customers without fear. Many retailers maintain an inventory of their best sellers while offering additional items via dropshipping. In an eCommerce environment, a customer may not even know an item is being dropshipped.
Dropshipping may be a buzzword these days, but when you think about it, some retailers have offered a form of it for decades. In the past, they just called it “special orders.” When a store didn’t have an item on hand, they contacted the vendor. The customer decided whether they wanted that item shipped directly to them or whether they would prefer to pick it up in the store.
When Dropshipping Fails
With so many positives, you may be wondering, why doesn’t everyone dropship? The answer is simple. Dropshipping adds an entire extra layer to your sales, inventory, and accounting processes. If you don’t have the tools to properly manage dropshipping, you can end up with angry customers and vendors.
Dropshipping requires thorough communication and excellent recording. It only takes a few small mistakes for your dropshipping system to become needlessly complicated. But with AccountingSuite™, you can achieve hassle-free dropshipping.
How We Can Help
AccountingSuite™ contains a number of features that have been built with dropshipping in mind. You can easily manage sales orders, purchase orders, bills, and invoices. The experience is seamless, efficient, and easy to monitor. It’s easy to tell which dropship requests are being shipped to your primary location and which are heading directly to customers.
With these tools, it’s easy to aggregate data from dropshipping as well as traditional sales. This data can help a business owner make more informed decisions about inventory levels, product mix, and other essential concerns. It also allows them to reach untapped markets and offer more products than they otherwise could. Who wouldn’t want that?
In addition to these unmatched dropshipping features, AccountingSuite™ comes packed with inventory management tools and everything else a retailer would need to run A1 accounting. Head to our pricing page to find out more.