Shipping is one of the most important steps in exports. Businesses follow different modes of transportation and shipping that best suits their revenue model. Direct shipment is one such strategy.
What is direct shipping?
Bypassing a physical store or warehouse, direct shipment is a form of fulfillment
in which goods are sent from the supplier to the customer directly. In this process, there are no middlemen involved and the idea of a distribution route is bypassed (wholesaler and retailer).
What benefits can direct shipments offer?
For leaner e-commerce businesses who are just starting out or have lesser order quantities, direct shipping is helpful. Some of its top advantages are:
• Greater inventory control
• Reduction in logistics cost
• Comfortable and simple
• More rapid transit
• Development possibilities
Direct shipping process
Some of the common steps involved in direct shipment are:
Receiving the order
An exporter or a manufacturer receives an order and confirms that there is adequate inventory on hand to fulfill it.
Processing the order
This is when an exporter ensure that goods are in stock and order details are valid.
Completing the order
Order fulfilment might start after the order has been processed. This entails selecting appropriate goods for the order and getting them ready to ship.
What are the risks involved with direct shipping?
Products are accessible
Although direct shipping provides more control over inventory
, there is also responsibility for more tasks that would often otherwise be done by a middleman, such as a 3PL. If an exporter is not ready for a sudden spike in product
orders, this could become an issue.
No shipping promises
There is no way to guarantee the quality of products shipped to the customer from a supplier when it is shipped directly. If a customer has shipment problems, this could endanger brand’s reputation. Third-party logistics (3PL) offers a better means to guarantee deliveries.
Easy exports and hassle-free logistics with Amazon Global Selling
As an e-commerce exports
program, Amazon Global Selling
enables Indian exporters and businessmen to get access to 18+ global marketplaces
. It also provides required tools and solutions like Fulfillment by Amazon (FBA) and Amazon SEND to assist with shipping
, storage and delivery – across the world.
Published on March 27, 2023.