Drop shipping occurs when a retailer offers a product for sale but doesn’t stock the merchandise itself. Instead, the company purchases the merchandise from a third party and has it sent directly to the consumer. The seller never touches the goods. Easy peasy.
But what makes this fulfillment method simpler and even more cost-effective is by using EDI for exchanging the particulars for each order. (To learn about the basics of electronic data interchange, see The ABCs of EDI.) In fact, most large retailers today are required to use an EDI solution.
Many parties benefit from successful EDI drop shipping setups — suppliers, distributors, brick and mortar stores, online stores, logistics companies, and more, across a wide range of industries. The time saved opens up possibilities for more sales and revenue.
The main difference between a drop shipping model and the standard model of the retailer shipping its own goods is the company doesn’t actually stock or even own the product it’s offering. Instead, it purchases the item directly from a manufacturer or wholesaler as soon as the customer hits the “Place Your Order” button. EDI makes that happen instantly.
If this is something you’ve been thinking about to simplify your supply chain, look no further. Let BOLD VAN’s EDI transformation automate your drop ship process. Our shipping solution includes all the compliance that EDI requires such as the shipping labels, customer-specific pack list, EDI documents, and more.
Click here to see how easy it is to get started.