Dropshipping makes running your business much easier because you don’t have to worry about storing or managing inventory. That doesn’t mean the process is completely automatic, though. Before you can start selling, you need to figure out how to fulfill dropship orders on Shopify. Going from point A (the sale) to point B (delivery) takes planning.
What Do You Need To Fulfill Orders With Shopify Dropshipping?
Order fulfillment is the process of receiving a customer’s order, packaging the necessary items, and shipping them to the client. With dropshipping, you outsource these tasks to a third party instead of handling them in-house.
On Shopify, the specifics of delivery depend on the type of dropshipping business model you choose. There are several ways to approach dropshipping order fulfillment.
Dropshipping Fulfillment Suppliers
Many dropshipping suppliers provide order fulfillment as a big part of their services. You’re responsible for selling products and billing your customers, but the supplier takes care of the heavy lifting:
- Sourcing the products
- Picking and packaging
- Shipping the finished order
This is one of the most common methods for dropshipping fulfillment on Shopify.
Print-on-Demand Suppliers
Print-on-demand is a type of dropshipping that lets you customize products. For example, instead of simply dropshipping T-shirts, you can create designs that are exclusive to your store. In this case, the POD business creates the individual items and ships them directly to your customers.
Wholesale/Third-Party Logistics
Large dropshipping businesses sometimes partner with wholesalers (or manufacturers directly) instead of suppliers. This requires ordering products in bulk, so dropshipping fulfillment gets tricky. Third-party logistics businesses are the solution, offering warehouse space, picking and packaging services, and shipping.
How Does Order Fulfillment Work in Dropshipping?
To help you understand how to fulfill orders on Shopify dropshipping, it’s important to see the process in action. Here’s an example from start to finish with an imaginary Shopify store called Good Hiking Stuff.
1. Customer Purchases Products
In our example, a client named Steve White buys one pair of hiking boots, a customized hoodie, and a duffle bag. Good Hiking Stuff displays the order, offers several shipping options, and finalizes the purchase by billing Mr. White’s credit card.
2. Your Store Captures the Client’s Shipping Info
Mr. White is a new client, so Good Hiking Stuff requests shipping information as part of the checkout process. Mr. White enters his address and phone number.
3. You Submit the Order Details to the Dropshipping Supplier
In this example, your dropshipping supplier is called Global Fulfillment Experts, or GFE. Using GFE’s forms, you send the details of the order for fulfillment, such as:
- Item descriptions and part numbers
- Quantities
- Customer’s address
- Type of shipping selected (e.g., standard or accelerated shipping)
With print-on-demand items, you also need to mention customization details at this step, such as color variants or personalized messages.
4. The Supplier Puts the Order Together
Many dropshipping suppliers maintain a large inventory at warehouses in the United States. In this case, the supplier would simply pick the items from its storage warehouse and package them.
Other dropship suppliers act as hubs, sourcing individual products from a wide array of manufacturers in other countries. In this example, GFE has the duffle bag in stock but needs to get the hiking boots from another vendor. The hoodie is a print-on-demand item, so GFE creates it right away.
Dropshipped orders don’t always arrive at the same time or in the same box. Overseas items always take longer than goods stored in warehouses in the U.S.
5. The Dropship Supplier Handles the Shipping Process
Once you send the client’s order to your dropshipping supplier, you can rest easy. The fulfillment company takes care of boxing, sealing, weighing, and sending out the delivery. This process also includes notifying customers of the order and providing a tracking number for the shipment.
In the example, even though GFE was responsible for order fulfillment, Mr. White thinks Good Hiking Stuff handled everything. That’s the beauty of dropshipping.
How Do You Fulfill Dropshipping Orders on Shopify?
Now that you know how dropshipping and order fulfillment work on Shopify, the next question is how you set up your store for this process.
Choose Between Manual and Automatic Dropshipping Order Fulfillment
A basic Shopify plan supports manual order fulfillment. This means you have to take all of the order information (product IDs, quantity, customer address, etc.) and type it into your supplier’s form by hand.
Shopify app integrations such as Zendrop automate this entire process. When a customer makes a purchase, Zendrop instantly sends the details to the supplier and sends the client a notification.
Prepare Your Store
There’s more to adding products to your store than setting the price and writing a description. You also need to fill out details like product dimensions, weight, and shipping costs. When you choose your products from a dropshipping supplier’s catalog, many of these details get added automatically.
Many Shopify stores choose to offer free shipping and include fulfillment costs in the product price. You can also choose flat-rate shipping, which charges the same amount regardless of product weight. Both of these options make order fulfillment easier.
Create a Return Policy
One of the trickiest parts of dropshipping order fulfillment on Shopify involves returns. On average, retailers see a return rate of 10%, though accurate sizing can help with this issue.
Who will your customers return items to? Who will pay for shipping costs? How much will you charge for restocking fees? The answers to these questions can determine whether your store is profitable or not.
You have to work out these details with your dropshipping supplier and order fulfillment partner. Once you know their policies, you can build yours to match — and adjust your prices with these costs in mind.
Learn How to Fulfill Dropship Orders on Shopify With Zendrop
Zendrop is one of the highest-rated dropshipping app integrations on Shopify. It offers a catalog of over one million products for your store, all sourced from dependable, reputable manufacturers and suppliers. Add products, make sales, and let Zendrop handle order fulfillment automatically. At StayTuned Digital, our team has a reputation for excellent customer service and support. We can show you how to fulfill dropship orders on Shopify step by step. Try out Zendrop today.