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What is direct shipping: Purpose and benefits

Direct shipment is a strategy to send products straight from a manufacturer or an exporter to a customer. Learn more about how it works, its benefits and risks involved in this blog.

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 – packaging, storage and delivery – across the world.

Seamless logistics solution for international shipping with Amazon SEND

Frequently Asked Questions

Is direct shipping easier or harder than drop shipping?

Since a warehouse to store all of the products is not required, it might be said that dropshipping is simpler to direct shipping.

How do I start shipping directly?

You can start shipping directly by following these steps:
· Start by placing an order for packing supplies here at least one week beforehand.
· Include all the information on individuals who will use the app to fulfill orders.
· Install the fulfillment app on your devices by downloading it from this page.

What does direct vs indirect shipping mean?

When transporting large orders by truck (freight), direct shipments use a single carrier, whereas indirect shipments permit the package to be handled by a number of carriers.

Is direct shipment less expensive?

Direct shipping may occasionally be more expensive than transshipments. This is because direct shipments are typically more in demand than transshipments, which drives up pricing.

Published on March 27, 2023.

Sources:
1. https://www.smartcapitalmind.com/what-is-direct-shipping.htm
2. https://www.purolatorinternational.com/benefits-of-direct-ship-vendor-solutions/
3. https://voodoorobotics.com/challenges-risks-adopting-direct-to-consumer-business-model/
4. https://www.signal-tech.com/information-center/news-and-articles/61-Freight-Shipping-101-Direct-vs-Indirect#:~:text=Direct%20shipments%2C%20when%20shipping%20large,carriers%20to%20handle%20the%20package.
5. https://fulfillmentanddistribution.com/direct-shipment-vs-drop-shipment/

What is Dropshipping: Detailed guide to dropship in 2022

How to calculate shipping costs?

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