What To Do If You Have Multiple Suppliers For Your Dropshipping Store
If you’re sending multiple products to customers from multiple suppliers separately, then chances are you’re also paying MULTIPLES more for shipping than you need to.
And it’s because sending two or more packages of a certain total weight, will always cost more than sending one package of that same weight.
Why Does it Cost more?
Different Charges
Let's dive into a real-world scenario and consider this:
We're in the business of selling trainers or sneakers, each weighing around 350g. To safeguard these kicks, we offer silicone shoe covers at 50g per pack. Now, let's talk shipping costs when you send these items separately versus combined.
Using a 4-7 business day shipping line:
Sending a single package weighing 400g costs $8.
Sending 350g + 50g in two packages costs $11.31
The above computation results to a notable difference.
Here's the scoop: it's all about the charges.
A fee per weight
A fixed fee per package.
Let's Do The Math
If charges were based solely on weight, the extra packaging weight might incur a higher cost. But here's the kicker—sending two packages instead of one means you're facing two fixed fees instead of just one.
In our example:
The fixed fee for the 400g package is $4.11
The fixed fee for the 350g package is also $4.11
The fixed fee for the 50g package is $3.42
Here's the deal: you're paying an extra $3.42 fee for no good reason.
So, If you're dealing with 1,000 orders like this per month (that's around 33 orders a day), you're potentially losing $3,310 per month. That's nearly $40,000 a year ($39,720)!
Consolidating shipments not only saves you money in the short run but could mean substantial savings and smoother operations in the long run. Let's get that revenue back where it belongs— in your pocket!
Want A Game-Changing Solution?
It's simple: ship everything in one package. So, how do you make that happen?
Intermediary Agents
3PLs
fulfillment centers
Dropshipping agents in China.
E-commerce stores today are teaming up with 3PLs, fulfillment centers, or dropshipping agents in China. These smart allies store both the trainers and shoe covers in one place, ready to pack and ship them together. In our case, we partner with brands offering multiple upsells and bundles.
If they shipped each item separately for every order, they'd be looking at hefty shipping costs. But guess what? We take the easy route, packing them all in one package and sending them out.
AliExpress Consolidated Shipping
Now, if you're using AliExpress consolidated shipping, keep an eye on a couple of things:
Customs fees - This fee may vary depending on the destination. Always check if the package value surpasses the customs threshold.
Slow Moving products - If one item in your AliExpress package takes forever to arrive, it might slow down the whole shipment. Double-check the specifics for the destination country to stay on the safe side.
Although I haven't personally used AliExpress in a while due to running my own fulfillment company, I’m here to share more insights to help you maximize your profits as an entrepreneur
If you're looking for a Fulfillment service then click here.
