Drop shipping is an important topic amongst direct response marketers.
If you’re a product supplier with a fast-growing direct response business, there are many options for getting your products into the hands of your buyers.
Many direct response marketers know there are many benefits to drop shipping, but this supply chain model may also seem like a bit of a magic trick, because the drop shipper is a seemingly invisible part of the process.
What Is Drop Shipping?
As a consumer, when you order a product from a company or brand, the order may arrive at your door in a box that has the brand’s name on it, the brand’s name on the return address information, as well as the brand’s information on the packing slip inside. A consumer may think that HSN owns all of the products they advertise, and that HSN must also have multiple warehouses with a very large amount of space for managing their inventory and preparing shipments for consumers. However, this is not the case.
If it was drop shipped, the product and package may never have been owned, stored or shipped by the company/brand you ordered from.
HSN drop shipping from the perspective of the direct response marketer looks like the following.
HSN does not use its own warehouses to store direct response marketers’ products, and it does not use its own services for shipping the products out. Essentially, order fulfillment centers do this behind-the-scenes magic on behalf of HSN.
In this case, the order fulfillment center (aka third-party logistics provider) becomes the drop shipper – the magical middleman. The third-party logistics (3PL) provider houses the inventory, pulls and packs the inventory with HSN branding and contact information and then ships it out on HSN’s behalf.
The Benefits Of Drop Shipping / 3PL For HSN
Drop shipping has many great benefits for both the direct response marketer and HSN. Here’s why:
- HSN doesn’t have to buy the inventory
- Neither HSN nor the marketer needs to pay to have the inventory shipped to its warehouse.
- HSN doesn’t have to pull and pack the orders for each specific packing slip, and the direct response marketer would have had to pull that inventory anyways. This would have been double handling and is not efficient in supply chain.
- There is no need to pay for transportation on product that didn’t sell to return to your warehouse.
Because HSN allows for drop shipping (QVC, for example, does not), they are trusting you to ensure enough inventory to provide to their customers and to get the product packed with their brand information on it, both accurately and timely. If your operations or fulfillment company has any hiccups, there is a high probability that HSN will no longer allow you to drop ship and sell through their channel.
It’s a good idea to make sure that your operations or fulfillment drop shipper has a proven track record of success working with HSN so that you can continue to have a mutually beneficial selling and shipping relationship with HSN
That’s why it’s important to partner with a 3PL provider with proven experience. Always look for a 3PL company that has direct-to-consumer marketing clients and plenty of background in drop shipping for HSN. Along with other order fulfillment services you may need, now or in the future, as your business grows, your trusted 3PL saves you money by getting the job done right the first time, every time.
Ready to discover the HSN drop shipping solutions you need for your direct response marketing business? Call 800-808-3304 or click here to speak with a drop-shipping expert at Moulton Fulfillment.