| Pick and pack is a warehousing and order fulfillment | | | | company, they just pick and pack the items and |
| method. A list of items is generated by a computer | | | | send them off. A verification will often be sent via |
| and removed from their place in the warehouse. | | | | e-mail both to the business owner and the final |
| When the order is complete it is packed together | | | | customer. |
| and taken away for transportation. | | | | The costs and benefits of pick and pack warehouses |
| The advantage for the warehouse is self-evident. | | | | While pick and pack can be an extremely economical |
| Bulk items can be stored on pallets or in sizable | | | | system, there is one essential consideration. Sales |
| crates and then individual items picked from the | | | | must be high enough to warrant keeping bulk |
| shelves to satisfy an order. Items arrive at the | | | | inventory. Because of this a drop shipping company |
| storage warehouse in bulk form and is then shipped | | | | has to stay on good terms with affiliates. |
| out in smaller quantities as part of mixed orders. | | | | Some pick and pack drop shippers will charge a fee |
| For example, if your business provides copper wire in | | | | to "small cap buyers". "Small cap buyers" are affiliates |
| various assorted lengths, colors and sizes for hobby | | | | that do not meet regular minimum sales limits. This is |
| purposes. You could keep huge amounts of the stuff | | | | often not justified. After all, every single sale, no |
| in your storage warehouse and cut it into the | | | | matter how modest, will have the same costs to the |
| appropriate lengths as the orders came in. | | | | drop shipping company. |
| The advantages of pick and pack warehouses for | | | | Costs should always be minimal. As soon as you set |
| drop shipping companies | | | | yourself up as a valuable affiliate, try to extend your |
| A drop shipping company will often use the pick and | | | | credit. What this means is that your credit card will |
| pack strategy when when dealing with storefront | | | | not be charged to back-up payment from your |
| operators who partner with them. The shipping | | | | customers. Wherever possible, let the drop shipping |
| company sells and ship small amounts of many | | | | company take the risk. This is particularly true |
| different items via a distributor network. The | | | | whenever there are a significant number of returned |
| distributors are typically associates, but are single | | | | items. |
| e-store owners. | | | | The primary benefit of pick and pack warehousing |
| The advantage for drop ship companies is that | | | | for entrepreneurs is that they have access to |
| numerous small orders quickly add up to high | | | | products and warehousing that would otherwise cost |
| amounts of items sold. The advantages to the store | | | | much more. Drop shipping companies sell to their |
| owner is that they makes a profit on all sales they | | | | associates at wholesale prices. The profit margin |
| direct to the drop shipping company, and just as | | | | comes from reselling at prices. |
| importantly, the e-store doesn’t have to stock | | | | One slayer of ecommerce in the drop shipping model |
| or warehouse any inventory. Many drop shipping | | | | is the charge-back. If customers are likely to |
| companies will even go so far as to help set up a | | | | challenge an order made by credit card because the |
| budding entrepreneur. | | | | item is damaged or faulty, you could be in for a real |
| Often, the online retailer isn’t forced to deal with | | | | headache. If a purchase is disputed, it is very rarely |
| just one drop shipping company – he or she is | | | | worth challenging – the fees and trouble involved |
| free to do business with as many different drop | | | | can destroy any possible gain. Because of this, you |
| shippers they desire. | | | | should investigate any drop shipping company you |
| When an order is received by the drop shipping | | | | intend to do business with. |