Drop Ship

by admin, July 19, 2010

Drop Shipping Overview

If you drop ship, you have other vendors ship items directly to your customers.  If you are a dropshipper, you ship products directly to customers for other vendors. Channergy provides solutions for both scenarios.

In the former, and more common, scenario you may enter an order manually or import it from any number of sources (your web store, Amazon, eBay etc.). Channergy will automatically assign a preferred dropshipper and create a drop ship purchase order.  Upon receipt of shipping confirmation from your vendors Channergy can upload tracking numbers to your web stores and email your customers.

In the latter case you can provide drop shipping for your clients. As they take orders and send them to you simply enter or import them into Channergy and fulfill normally. You can then run reports or export to text files the status of the filled orders and any billing.

How Drop Shipping Works

Before taking orders you will need to set up your product inventory. Channergy includes a Multiple Locations feature you can use to specify the locations and dropshippers associated with each product. For example, a single product may have two bin locations in Warehouse A, one in Warehouse B and two dropshippers.  For each location you can specify a quantity or indicate Non Inventory if you do not know the counts (common with dropshippers) as well as the preferred order.  Channergy will display the total quantity of all your locations in the In Stock field.

When you key or import an order Channergy will automatically deduct stock from the locations in preferred order. This allows you to deplete in house stock before ordering from drop shippers. You can also use it to ship from less expensive or faster dropshippers first. Channergy keeps track of the quantity on hand at each location and continues to the next available source as you create more orders. However, you can at anytime manually override the location on the order. Change drop shippers, select a dropshipper instead of your own warehouse, have all items sent by the same drop shipper etc.

Channergy can create a single drop ship purchase order for each vendor with all the information they need to ship products to you or directly to the customer. Or, you can create individual, editable purchase orders directly from the order screen. In either case the PO can be printed, faxed or emailed. It is also possible to create comma separated (.csv) text files, connect to an ftp site or a web portal or otherwise electronically transfer the PO to your vendors.

When your vendor ships they can return the tracking number and shipping information to Channergy. The information is stored at the order level and can be optionally uploaded to your web stores and an email sent directly to your customer notifying them of the shipment and containing a clickable tracking number.

Drop Ship Distributors

Use Channergy to connect your channels with your drop ship distributors. Channergy manages the transfer of orders directly from your web stores to your drop shippers. When they ship to your customers they can send tracking information back to Channergy, which can in turn upload the shipment confirmation to your channels. Using Channergy to automate the process ensures faster shipments, less work and happy customers.

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