Is Drop Shipping Helpful or Harmful?

by Shirley George Frazier on July 1, 2009

show appreciation today to increase your gift basket sales tomorrowEvery October, gift baskets are one of the main topics in Florists’ Review magazine.

The editor asks me about the trends in drop shipped gift baskets, a service that can be advantageous to gift basket designers and florists.

The benefits are numerous depending on your situation.

1. You cannot make gift baskets due to state restrictions on home-based businesses, so drop shippers provide you with a way to make money without breaking the law.

2. Your inventory is broad, and you cannot buy another thing, so drop shippers who stock alternative products fulfill orders with items you do not carry.

3. You are so overwhelmed with orders that in order to satisfy customer demand, you’re forced to outsource the overflow to a drop shipper.

On the flip side, many designers have little use for drop shipping because their clients prefer the unique appearance of customized gift baskets. They view ready-made designs as cookie-cutter replicas that have no place in their customers’ hands.

What’s your take on drop shipped gift baskets? Do you swear by the service or swear at it?

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{ 3 comments… read them below or add one }

Mireya July 1, 2009 at 8:31 am

Helpful but can nbe harmful. I mean it is a great low cost on inventory and you can consentrate on the marketing aspect of the business. Working with a drop ship company like gift fulfilment subjects me to follow their prices and some are high for this economy’s situation. But I have decided know to branch out with custom designs. I will offer only two designs, thank you and get well that I will create. The drop ship I will use as a means to capture the gifts my business clients will need for their everyday gift giving needs.

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Mireya July 1, 2009 at 8:33 am

I forgot to mention one more thing. My business goal is to do one thing and do it well. I want to put my efforts on creating thank you gifts and get well gifts. I dod not want to burn myself out creating all types of gifts.

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Shirley George Frazier July 1, 2009 at 5:50 pm

Your goal is commendable, Mireya, though you may find your customers requesting gifts and baskets outside of the get well and thank you themes (and you’ll be able to do it because of your inventory or drop ship arrangement).

Some designers, because of the state in which they do business, have no choice except to drop ship products. I know they’d love to be in your shoes, Mireya, designing products that are uniquely created for their customers.

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