See Blog Categories

Drop Ship to Your Heart’s Content: International Shipping Rate Calculator

Nicasio Co III
  •  
  •  
June 21, 2021

Drop shipping is a way to fulfill customers’ orders without keeping products in stock. Instead, you accept the orders, and then your supplier completes them and sends the products directly to your customers. It is one of only a few business models that require little or no money upfront, even when you need to send your products to other countries. 

Domestic shoppers are increasingly looking beyond their borders to find the products they need. In fact, the majority of online shoppers purchase from overseas retailers. Based on this information, it looks like drop shipping has a bright future.

What? I don’t have to keep products in stock? And there’s no need for money upfront? What am I waiting for?

Hold on just a minute! Like any business model, drop shipping has its share of challenges. This article will discuss the different problems you may face in the drop shipping business and how an international shipping rate calculator can address them by giving you more control over your supply chain.

Low Profit Margin

In drop shipping, the low overhead expenses translate to low returns. It’s how business works. If you invest a small amount, the profit will most likely be minimal. Drop shippers can expect an average margin of 20% and a conversion rate of 2%

You can then compute your profit using this formula:

Profit = (Traffic × .02) × (Average order value × .2)

It can be challenging for a business to remain profitable under these conditions. The only way to stay afloat is to sell a boatload of products, but that’s not realistic when you’re just starting. You have to find a way to lower your costs so that your profits are more substantial. 

That’s where a logistics partner comes in handy. In the traditional drop shipping setup, your manufacturer takes care of the entire order fulfillment process, including delivery. You can change this by taking the shipping out of your supplier’s hands. Instead, task your shipping partner with the picking up of orders from your manufacturer’s warehouse.  

With the efficient use of a shipping rate calculator, you can control the delivery costs and increase your profit margin. A 10% increase in your profit can be very significant to your bottom line.

Little to No Control over the Supply Chain

With how drop shipping is usually done, this is probably the most significant disadvantage compared to storing your own inventory. Because you have little to no control over the supply chain, you’re always at the mercy of how efficiently (or inefficiently) your supplier can fulfill orders. 

Having a logistics partner gives you more control over deliveries and pickups and makes the supply chain less dependent on things you can’t foresee. Sometimes, they provide you with packaging materials as well.

Many e-commerce businesses even integrate their logistics partner’s software with their platform to further streamline their processes, provided  that your manufacturer already has your inventory in their storage. Your buyers can access your partner’s international shipping rate calculator directly and find out the best price for international shipping.

In this setup, your manufacturer ends up just providing storage for your goods, and the extra fees will be less, of course.

Fewer Options for Delivery 

With more control over pickups and deliveries, you can offer more options for your customers. They can choose to get economy international shipping if the need for your product isn’t urgent. If they need the delivery to be quick, they can opt for a standard or expedited international delivery. 

There’s no need to worry about what companies ship internationally. Even local shipping companies have international partners, so your international customers can just sit back and relax while they wait for their orders. Computing the shipping charge is easier if they have access to a shipping calculator. 

Delivery Complaints

In traditional drop shipping, your supplier controls shipping, and that can be a problem. When there are delays, you’ll still be the one handling complaints. Worse, you’ll probably end up promising things to your customers without knowing if you can keep them. 

In the new drop shipping setup, you can contact your logistics partner directly and find out the status of any delivery. There are even companies that offer international tracking, which makes it easier to track shipments with the click of a mouse. That’s one of the services a good shipping partner offers besides an international shipping rate calculator.

Unreliable Suppliers

Your logistics partner can’t straighten out an errant supplier, but it makes switching to a new one so much easier. Because you control the shipping aspect of your drop shipping business, all you have to do is get the address of your new manufacturer and inform your shipping company about it. Plus, you can use a shipping calculator to determine if there are additional charges associated with changing suppliers.

There are several things you should consider when choosing a supplier. Here are a few of them.

  1. How do they handle returns or damaged items?
  2. How long does their fulfillment process take (minus pickup and delivery)?
  3. How is their B2B customer support? 
  4. Do they insure orders, or does your shipping partner have to take care of shipping insurance?
  5. Do they offer protection from fraud?
  6. Do they have good online reviews?

Rise to the Drop Shipping Challenge with Stallion Express

There are indeed many challenges that accompany a drop shipping business, but there are also a lot of possible solutions. All you need to do is be creative enough to identify the root of the problem and provide logical solutions. One thing is clear: if you have more control over your drop shipping business’s supply chain, your business has more opportunities to flourish.

Global e-commerce isn’t going anywhere. In 2019, global sales surpassed $3.5 trillion, and it’s expected to grow substantially from there. The competition is fierce, but with less capital and fewer risks, an ordinary seller can get into the e-commerce game easily through drop shipping.

If you need the help of an excellent shipping partner in starting a drop shipping business with minimal risks, contact Stallion Express. We offer viable shipping and e-commerce solutions to many companies all across Canada. Sign up now!

Get started today! Ship faster, smarter, cheaper with Stallion.

Get Started Today.  Sign Up for Free!
Written by Nicasio Co III

Nicasio is the co-founder of Stallion Express - the leading eCommerce shipping company in Canada. Through his unique experiences in tech and digital marketing, he is on a journey to disrupt the logistics industry.

Leave a Reply

Your email address will not be published. Required fields are marked *

See more articles
Canada to US: Common eCommerce Fulfillment Issues

While problems and slight hiccups are inevitable in any industry, it doesn't mean you shouldn't do your part to help prevent or resolve these issues. The shipping and logistics industry is no exception because, even though rare, there are common challenges that many shipping providers and carriers experience. This article might pique your interest if […]

Read More
Stallion x Wonderment Partnership

Another integration request unlocked based on clients’ feedback! With our team keeping up with the rapid pacing of the eCommerce industry, Stallion Express has teamed up with the creators behind an application that’s helpful in your tech stack to reduce customer support queries.  We are thrilled to share our latest collaboration with Wonderment, a post-purchase […]

Read More
Stallion May 2023 Recap

We’re excited to wrap up this month full of surprises! These Stallion highlights will provide enough information on announcements worth checking out.  General Updates Stallion Economy Air launch Our latest domestic service, Stallion Economy Air is available for shipments originating in Ontario and B.C. regions, which offers faster delivery through air shipping. This revamp is […]

Read More

Join the Stallion Newsletter

You’ll receive the best tips, strategies, and news on Canadian ecommerce.

Read More

Canada to US: Common eCommerce Fulfillment Issues

While problems and slight hiccups are inevitable in any industry, it doesn't mean you shouldn't do your part to help prevent or resolve these issues. The shipping and logistics industry is no exception because, even though rare, there are common challenges that many shipping providers and carriers experience. This article might pique your interest if […]

Stallion x Wonderment Partnership

Another integration request unlocked based on clients’ feedback! With our team keeping up with the rapid pacing of the eCommerce industry, Stallion Express has teamed up with the creators behind an application that’s helpful in your tech stack to reduce customer support queries.  We are thrilled to share our latest collaboration with Wonderment, a post-purchase […]

Stallion May 2023 Recap

We’re excited to wrap up this month full of surprises! These Stallion highlights will provide enough information on announcements worth checking out.  General Updates Stallion Economy Air launch Our latest domestic service, Stallion Economy Air is available for shipments originating in Ontario and B.C. regions, which offers faster delivery through air shipping. This revamp is […]

Hear what online sellers in Canada are saying

"Stallion Express is a game changer for small business owners like myself. My online store wouldn't be where it's at today without the Stallion Express team."
Dorothy Wong
"Outstanding service. Delivery is always on time. Accessible location. Expert staff. There's nothing else I could ask for."
Norma Joseph
"Stallion Express has been fulfilling my shipments with excellence for the longest time. With their quick actions and unparalleled customer service, they are the best shipping company."
Lena Hulsey
Stallion Express
Ship faster, smarter, and 
cheaper with Stallion Express
© 2022 Stallion Express  |  Legal
Ship faster, smarter, and cheaper with Stallion Express
Stallion Express 2020  |  Legal
menuchevron-downcross-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram