Drop Shipping 101

Drop Shipping 101

How It Works

Drop shipping is when a seller ships its customers' orders direct from its supplier's warehouse AKA making your life a whole lot easier. No more investing in shipping supplies, printing labels, packing orders, or hunting down tracking numbers. 

The traditional Drop Ship model entails shipping out orders to each individual customer, but there are also ways to split large shipments between multiple addresses or drop ship multi-product corporate gift sets to everyone on your staff. We'll break down the 3 different drop shipping options, but first here's an overall idea of how it works: 

Drop Shipping Options

Single Distribution

Garments individually packed & shipped out to each user.

$1.50 per unit + $0.50 per additional item (pricing does not include postage)

**If we are holding inventory for you, pricing is $2.50 per unit + $0.50 per additional item.

Single Distribution is perfect for anyone running pre-sales selling merch for their album release or clothing brand (see Timed Campaigns for more info).

Single distribution is most successful when a store is fully integrated via API, this way all orders & addresses come in without manual entry. We are able to connect our shipping software to your store prior to launching your products/sale. 

If the sale has already ended and you still would like to utilize drop shipping, you can provide us with a spreadsheet that contains all order information (customer names, addresses, e-mails, product orders).

Download our CSV spreadsheet here.

 

Multi-Location Distribution

Same garment going to multiple addresses.

$5.00 per box (pricing does not include postage)

In the instance that you have an order of t-shirts that need to go to a few different retail locations, event venues, or company offices around the country. 

Distribution is created in Stokkup order module by Brand Coordinators. Shipping is done via Stokkup.

 

Multi-Product Kits

Multiple products assembled in a box and shipped directly to each recipient.

$2.00 per unit + $5.00 per box (pricing does not include postage)

Multi-product kits are ideal for employee/corporate gifts or merch bundles. You provide us with a spreadsheet with all recipient names, addresses, and apparel sizes and we take care of the rest. 

 

Holding Inventory

Typically with Drop Shipping, we only produce the amount of orders that came in then ship directly to the customers. However, this does increase the amount of time your customer waits to receive their order since the products are not sitting in a warehouse ready to be packed.

The solution? We can hold inventory for you at our facility and immediately ship out orders as they come in. 

Requirements:

*72 units per box

*1 design per box (ex. if you have 3 different t-shirt designs, each style t-shirt will need its own box)

*$5 per month/box

*Minimum of 5 boxes to store inventory with us

*Postage (the cost of us shipping out each package for you) will be billed at the end of every month. 

 

Shipping

Costs

We will always utilize the most cost effective options when shipping your merchandise, unless otherwise instructed. Tees and lightweight items like hats typically ship First Class (under 1 lb) and heavier items like sweatshirts or orders with multiple products ship Priority (over 1 lb).

 

USPS

1) First Class

Most affordable option for lightweight items up to 15.99oz.

2) Priority

Quicker than First Class and allows sending packages up to 70lbs.

3) International

Self explanatory - for shipping packages out of the U.S. borders.

 

UPS/FedEx

1) Over 10 locations - we ship via our shipping software.

2) Under 10 locations - we ship via our order management system, Stokkup.

 

Hot tip: Charge your customers for shipping based on their zone vs flat rate shipping. Charging flat rate shipping (ex. $5 shipping for all orders no matter the weight or location) will eat away at your profits. If you want to offer customers free shipping, factor this into the price of your products. 

 

Time frame 

Due to COVID, weather, and other delays it's hard to give an exact time frame for shipping turnaround, but here are the estimated windows of when you can expect customers to receive their packages based on delivery method. International Shipping is virtually impossible to predict due to borders and customs.

 

Spoilage

What happens when 100 customers ordered t-shirts, but after production there was 1 misprint? To avoid this from happening, we always add 3% overage units for every size to account for any spoilage that may occur.

Example: An order of 100 units may be billed for an additional 3 units (3% surplus) for a total of 103 units. 
Of course, we always do our best to ensure good quality with no mistakes for all merchandise but due to automated machinery spoilage is sometimes unavoidable. If there were no misprints and all orders were shipped out, we will ship the remaining overage units back to you. 

 

Packing Slips 

Customize packing slips with your logo, address, and even a thank you note to your customers. Even though it is shipping from our facility, the customer will never know. 

Are you a smaller business without headquarters or mailing address? No problem, we will list our facility address but replace the business name with yours. 

  

Have more questions?

Reach out to connect with a dedicated Account Manager who can set up Drop Shipping for your brand.

sales@culturestudio.net

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