Drop Shipping Definition & Role in Automated Fulfillment

What is drop shipping?

Drop shipping is an ecommerce fulfillment method where a business sells products without physically stocking them. When a customer places an order, the business forwards the order and shipping details to a third-party supplier, typically a manufacturer or wholesaler, who then ships the product directly to the customer.

How does drop shipping work?

Drop shipping eliminates the need for some businesses to rely on large warehouses filled with inventory. Instead, it uses existing distribution networks to minimize storage costs and reduce the risk of unsold stock.

These distribution centers serve as hubs where products are stored in bulk by manufacturers or wholesalers, ready to be shipped as individual orders are received.

This shifts the seller’s focus from managing inventory to managing logistics, data, and customer relationships instead.

How can automation enhance drop shipping?

Automation can improve the efficiency and scalability of your drop shipping processes by eliminating tedious and repetitive tasks like order processing, inventory management, and tracking updates.

Modern distribution centers increasingly rely on automated systems such as AMRs, pick modules, and inventory-tracking software. These technologies speed up the fulfillment process, reduce human error, and make it possible to process thousands of small, individualized orders each day.

For drop shipping, where customer expectations often require same day shipping on platforms like Amazon’s Seller Fulfilled Prime, automation can assist in meeting those demands while keeping costs under control.

In addition to physical automation, software systems play an equally important role in effective drop shipping processes. Software serves as the brain, facilitating communication between automated material handling equipment, inventory control, and order release management.

Automated Solutions from Numina Group

Numina has over 40 years of experience designing and implementing automation for ecommerce and other high-demand fulfillment operations. Its solutions are designed for speed and efficiency, the two most important qualities for a successful ecommerce supply chain.

Numina Group supports companies with drop shipping operations by automating their fulfillment processes through warehouse execution software and material handling systems.

As a systems integrator, Numina provides e-commerce and omni-channel fulfillment operations with the technology needed to manage high volumes of orders efficiently: