Dropshipping Fulfilment Service

As the retailer, you create an online store and list products sourced from various suppliers, which can include manufacturers and wholesale distributors. These suppliers maintain their own inventory, and you showcase their products on your website without holding any stock yourself. Your role is primarily to market and sell these products, setting your own prices while relying on suppliers to fulfil customer orders.

When a customer makes a purchase from your store, you receive the order details and must manually forward them to the supplier. This process can vary depending on the supplier, with some requiring email submissions, online portal entries, or direct integration through third-party apps. However, in most cases, it requires some level of manual effort to ensure the order is correctly placed with the supplier. Any errors in forwarding the order, such as incorrect shipping addresses or product specifications, can lead to fulfilment delays or customer dissatisfaction.

Pick, Pack, & Ship

Once the supplier receives the order, they take responsibility for picking, packing, and shipping the product directly to your customer. The entire shipping and handling process is out of your hands, meaning you have no direct control over packaging, delivery speed, or the quality of order fulfilment. If a supplier makes a mistake, such as sending the wrong product or missing an item, it falls on you to handle customer service issues and find a resolution. This process, known as what is a pick and pack service, is crucial in understanding how products are managed and shipped by suppliers.

Because you do not hold physical inventory yourself, you are completely dependent on your supplier’s stock levels and operational efficiency. If a product sells out or is discontinued without notice, you may be forced to cancel customer orders or delay fulfilment while finding an alternative supplier. Additionally, since suppliers may be located in different regions or even overseas, shipping times can vary widely. Customers often experience long wait times, and if multiple suppliers are used, a single order may be shipped in separate packages, potentially leading to confusion or increased shipping costs.

Here's a summary of the main pros and cons:

Dropshipping Pros

• Low start-up costs - You don't need to buy inventory.
• No warehousing required - Your supplier ships customer orders directly.
• Wide variety of products - You aren't limited as to where you source stock from.

Potential Cons

• Stock issues - You have no control over stock levels, and suppliers may run out of stock without informing you. This leads to dissatisfied customers and negative ratings.
• Inconsistent delivery times - With multiple manufacturers or suppliers (especially those overseas), shipping orders can take much longer, up to a few weeks in some cases.
• Slow fulfilment processing - Potential delays may arise due to manual processing.
• Lack of branding options - Most suppliers won't offer branded or customised packaging, leading to a less satisfactory customer experience.

Instead of sourcing products from multiple independent suppliers, you partner with a third-party fulfilment provider (like Direct Fulfilment 365) that manages inventory storage in dedicated warehouses. We hold stock on your behalf, eliminating the need for you to coordinate with multiple suppliers or worry about fluctuating availability. Your role is to select and send us inventory, ensuring we have sufficient stock to meet customer demand. This model provides a more streamlined and efficient supply chain, drastically reducing the risks of stock shortages or supplier inconsistencies, which is key in answering how do dropshippers fulfill orders effectively.

Inventory Management Processes

We fully integrate your store with our fulfilment service’s system, allowing for seamless order processing. When a customer places an order on your website, the details are automatically transmitted to our fulfilment centre without any manual input. This automation minimises the risk of errors and significantly reduces the time spent on administrative tasks. Unlike traditional dropshipping, where orders must be manually forwarded to various suppliers, this process ensures instant order fulfilment, allowing for faster and more accurate shipping.

Once the order is received by the fulfilment centre, their team handles picking, packing, and shipping the product directly to the customer. We operate multiple warehouses strategically located across different regions, meaning that orders are shipped from the facility closest to the customer. This dramatically shortens delivery times compared to traditional dropshipping, where products may be shipped internationally from a supplier’s location. Faster shipping improves customer satisfaction and increases the likelihood of repeat purchases.

Global Facilities

One of the biggest advantages of using our fulfilment service is the ability to offer faster and more reliable shipping. Our global order fulfilment centres allow for quick deliveries within just a few days rather than weeks. Automation is another key benefit, as the entire process is streamlined, reducing the need for manual intervention and improving overall efficiency. Additionally, inventory management becomes much more reliable as real-time stock updates ensure you do not oversell products that are unavailable.

Customisation & Branding

Branding is another area where our third-party fulfilment services excel. We offer branded packaging, custom inserts, and personalised unboxing experiences, allowing you to maintain a strong brand identity even when products are shipped directly from our fulfilment centre. This level of customisation is typically not available in traditional dropshipping, where products often arrive in generic packaging.

Lastly, our fulfilment services are highly scalable, meaning we can accommodate a growing number of dropshipping orders without requiring additional effort from you. Whether you are processing a few orders a day or scaling to hundreds or thousands, Direct Fulfilment 365 ensures a smooth and efficient operation.

When a customer purchases an item from your online store, the details are automatically transmitted to Direct Fulfilment 365 through our seamless system integration. Whether you’re using Shopify, WooCommerce, Magento, or another ecommerce platform, our fulfilment system instantly receives the order, eliminating the need for manual input and reducing processing time.

As soon as we receive the order, our system assigns it to the nearest fulfilment centre based on the customer’s delivery address. This strategic approach ensures the fastest possible shipping times while minimising costs. Within minutes, our warehouse team is notified and begins preparing the order for dispatch.

Our state-of-the-art warehouse management system directs our team to the exact location of the ordered items. Using barcode scanning technology, we carefully pick the correct products from our inventory. Accuracy is our top priority, and our fulfilment process is designed to minimise errors, ensuring customers get exactly what they ordered.

We also apply product quality control measures to check the items for any damage or defects before they are packed and dispatched.

Once the items have been picked, they move to our packing stations. Here, we securely package each order using high-quality materials, ensuring products arrive in perfect condition. Direct Fulfilment 365 offers custom packaging options, allowing you to include branded boxes, tissue paper, inserts, or promotional materials. This enhances your brand identity and creates a memorable unboxing experience for your customers.

We can also use sustainable materials to enhance your status as an environmentally-conscious brand.

After packing, the order is labelled and handed over to our trusted courier partners. We work with leading UK and international carriers, including Royal Mail, DPD, Hermes, and UPS, to offer a range of delivery options, from next-day shipping to economy services. Our system automatically selects the most efficient courier based on the destination and shipping method chosen by your customer.

As soon as the order is dispatched, a tracking number is generated and sent to both you and your customer. Our system automatically updates your ecommerce store, ensuring customers receive real-time notifications about their delivery status. This helps reduce support inquiries and provides a seamless shopping experience.

The final step is delivery to the customer’s doorstep. Thanks to our efficient fulfilment process and strong courier partnerships, orders arrive quickly and reliably. If any issues arise during delivery, our dedicated support team is on hand to assist, working with carriers to resolve delays or misplaced shipments.

Should a customer wish to return an item, our returns management system ensures a smooth and hassle-free process. Depending on your preferences, we can inspect, restock, or dispose of returned products according to your instructions. This helps maintain customer satisfaction while keeping your ecommerce business operations running efficiently , and is a key part of how to reduce returns in ecommerce.

Getting started with Direct Fulfilment 365 is quick and easy. We generally charge a one-time setup fee* of between £300 and £1,000 (depending on the size and complexity of the operation) to integrate your online store with our system. This ensures a smooth transition, allowing orders to flow automatically from your website to our fulfilment centres without the need for manual input. Our team is on hand to guide you through the process, ensuring everything runs seamlessly from day one.

*This fee can be waived in certain conditions, typically for small businesses and depending on the type of contract agreed

Since we handle your stock in our secure UK-based warehouses, storage fees apply. Our pricing is flexible and scalable, so you only pay for the space you use. Storage costs are calculated based on:

• Size & volume - Charged per cubic metre, shelf, or pallet.
• Duration - Billed monthly, with no long-term commitments.
• Seasonal adjustments - During peak times like Christmas, storage space is in higher demand, so early planning helps keep costs under control.

On average, this will be around £18 per pallet per month, or £8.50 per cubic metre per month.

We also offer real-time inventory tracking, so you can monitor stock levels and avoid unnecessary storage fees for slow-moving products.

Every time an order is placed, our team carefully picks and packs the items. Our per-order fulfilment fee covers:

• Picking the product(s) from storage - Includes one item per order, with a small additional charge for multi-item orders.
• Packing - We use high-quality protective packaging to ensure products arrive in perfect condition.

Pick-pack fees start at £1.50 per order plus £0.20 per additional item.

For businesses looking to offer a premium unboxing experience, we also provide custom packaging options, such as branded boxes, tissue paper, inserts, and marketing materials, at an additional cost.

Shipping costs depend on several factors, but we negotiate discounted courier rates, which we pass on to you. Pricing is based on:

• Delivery speed - Choose from economy, standard, or next-day delivery.
• Weight & dimensions - Lighter, smaller parcels cost less than bulky or heavy items.
• Destination - Domestic UK shipping is cheaper than international orders.
• Order volume - High-volume sellers may qualify for additional bulk discounts.

Tracked economy shipping starts at around £3.95, whereas next-day service is typically around £4.40.

We work with trusted courier partners like Royal Mail, DPD, Evri (Hermes), and UPS to ensure reliable and cost-effective shipping.

If a customer needs to return an item, we offer hassle-free returns management. Our returns processing fee covers:

• Receiving and inspecting the returned item.
• Restocking or repackaging (if the product is in resaleable condition).
• Sustainable disposal or recycling options for unsellable items.

We can tailor the returns process to suit your business needs, ensuring a smooth experience for you and your customers.

Unlike some fulfilment providers that charge flat-rate monthly fees, Direct Fulfilment 365 operates on a pay-as-you-go model, meaning you only pay for the services you use. However, for businesses looking for priority support, dedicated account management, or additional software features, we offer optional monthly subscription plans.

We understand that branding is a key part of your business. If you want to elevate your packaging, we offer:

• Custom boxes with your logo and branding.
• Branded inserts like thank-you cards, discount vouchers, or promotional flyers.
• Luxury packaging options for a premium customer experience.

These services are charged separately, with pricing based on materials, volume, and storage requirements, so please contact us for details.

Each order we fulfil includes a small processing fee, covering the cost of software automation, order tracking, and system maintenance. This ensures your orders are processed quickly and efficiently without the risk of manual errors.

Additional Services & Special Requests
Some businesses require extra fulfilment support beyond standard picking, packing, and shipping. We offer:

• Kitting & bundling - If you sell gift sets or multi-product bundles, we can assemble them for you.
• Expedited order processing - For urgent, high-priority orders.
• Dedicated account management - A personal point of contact for large-scale businesses.

These services are tailored to your needs and are priced accordingly.

At Direct Fulfilment 365, our goal is to offer a transparent, flexible, and affordable fulfilment service that grows with your business. Whether you’re just starting out or scaling to thousands of orders per month, we’re here to handle the logistics so you can focus on selling!

• You bulk-buy 200 phone cases from the supplier at £5 each and store them in a UK-based 3PL warehouse.
• Your online store is linked to the 3PL system, so orders are automatically sent to them.
• A customer places an order for £20.
• The 3PL provider packs the phone case in a branded box and ships it within 2-3 days.
• The customer receives their item quickly in premium packaging, making them more likely to buy from you again.
• Since you control the stock, you avoid supplier shortages and can offer discounts (e.g., “Buy 2, Get 10% Off”).

You get faster shipping, better branding, and higher customer satisfaction, and the business is easier to scale. While you pay for storage and fulfilment and need to invest in stock upfront, these costs will be offset by increased profitability.

At Direct Fulfilment 365, we want your online store or ecommerce website to thrive, not just survive in a highly competitive market!

With this in mind, here are a few points to consider if you're still undecided:

Reduced Operational Costs vs. In-House Fulfilment

Although 3PL fulfilment services seem expensive, running an in-house operation comes with even greater costs, such as:

• Warehousing rental or purchase costs.
• Staff wages for packing and shipping.
• Packaging materials.
• Time spent managing inventory, processing orders, and handling returns.

Understanding the hidden costs of in-house fulfilment and why outsourcing might be cheaper is essential for making an informed decision. Direct Fulfilment 365 handles all logistics, allowing business owners to focus on sales, marketing, and customer service rather than dealing with fulfilment headaches. The trade-off is reduced time and financial investment in warehousing, staffing, and operations.

Using Direct Fulfilment 365's model means orders reach customers faster than traditional overseas dropshipping, leading to:

• Higher conversion rates (customers prefer fast shipping).
• Fewer refunds/returns (due to reliable shipping and packaging).
• More repeat customers (who are willing to pay premium prices for a great experience).

Businesses can charge more for faster shipping while still offering better delivery times than competitors relying on slow international shipping.

A key downside of traditional dropshipping is the lack of branding, but with Direct Fulfilment 365, businesses can customise packaging and inserts. This enhances brand value and allows them to charge premium prices.
For example:

• A standard product may sell for £20, but with premium branding & packaging, it could sell for £35-40.
• Adding personal touches like thank-you notes, discount codes, and luxury packaging increases perceived value and encourages repeat purchases.

Customers pay more for a premium unboxing experience, meaning businesses can offset fulfilment costs with higher-priced, premium offerings. It can also lead to increased customer loyalty, which is rare these days!

One of the most effective ways to improve profitability is to increase the average spend per customer. 3PL fulfilment providers can help by bundling and kitting products together.
For example, instead of selling one £20 item with £5 fulfilment costs, you can offer:

• A bundle of 3 for £50, keeping fulfilment at £6 instead of £15 for separate orders.
• Profit margins increase because the shipping and fulfilment costs per item decrease.

Encouraging customers to buy multiple items per order reduces per-unit fulfilment costs and boosts profit.

A successful 3PL-based dropshipping model allows businesses to scale quickly, leading to stronger negotiating power with suppliers.
For example:

• Initially, a business buys products for £10 per unit.
• With increased sales, they can negotiate a discount to £7 per unit.
• Profit margins increase without raising prices, simply by leveraging higher order volumes.

Using Direct Fulfilment 365 ensures smooth fulfilment, allowing businesses to scale rapidly and unlock a better wholesale price.

To make 3PL-based dropshipping profitable, businesses must balance customer acquisition and retention:

• Advertising smarter - Running highly targeted Facebook/Google/TikTok ads reduces acquisition costs.
• Email marketing - Capturing customer emails allows businesses to retarget them with low-cost promotions instead of constantly paying for ads.
• Subscription models - Offering monthly subscriptions or VIP clubs guarantees repeat revenue.

A well-structured business using a 3PL service turns first-time buyers into repeat customers, ensuring sustainable profits.