EDI Drop Ship
Drop shipping has quickly become a preferred order fulfillment approach for online merchants. The practice enables web-based retailers to pass orders and shipping data directly to manufacturers or wholesalers for fulfillment, which eases inventory, warehousing, packaging and shipping costs. The order can then be sent directly to the end consumer.
Accurate order communication and product location visibility are necessary for reliable drop ship programs. Sellers test customer loyalty when inventory data is incorrect or unavailable, which could result in lost sales opportunities. Other factors that can negatively impact the customer experience are inaccurate transaction detail exchanges, order status updates, return merchandise authorizations and packing slips.
Get the most out of drop shipping with EDI services from CovalentWorks, an EDI supply chain service provider for companies of all sizes. EDI, or electronic data interchange, reduces errors and costs associated with manual data entry while expediting the process of sending and receiving information. It’s a significant benefit to merchants and suppliers using drop shipping because it fosters accurate and timely communication.
Get the most from drop shipping
Optimize your drop shipping capabilities with MyB2B from CovalentWorks. With our My B2B solution, you can easily connect to any trading partner around the world.
MyB2B is an affordable but complete web-based EDI software solution for small businesses, entrepreneurs or newcomers who need fast compliance with their larger-company customers. It includes web-based software, barcode labels, VAN and technical support available from our United States of America-based solutions team. Operated entirely on secure web servers and not requiring EDI software or hardware, an Internet connection is the only thing you need. There are no hidden costs, and monthly fees are as reasonable as a mobile phone bill.
Benefits of MyB2B include translating inbound EDI transactions into easy-to-read documents viewable on any device and improved customer communication. You can generate, edit and send purchase order acknowledgements, prepare advanced shipping notices and create, modify and submit invoices without hassle.
Here are ways you can leverage EDI to maximize drop shipping relationships with CovalentWorks’ MyB2B solution:
- Utilizing the EDI 846 inventory inquiry or advice transaction set, suppliers can keep trading partners informed of specific item quantity levels without obligating them to make a purchase. This electronic document enables online retailers to accurately show customers the number of in-stock items at point of purchase. Online merchants can also request an EDI 846 inventory inquiry or advice transaction set to obtain up-to-date item stock quantity levels.
- The EDI 855 purchase order acknowledgement transaction set enables manufacturers, wholesalers and suppliers that drop ship on an online merchant’s behalf to confirm whether they can meet the terms of a previously submitted purchase order. This electronic document enables both parties to communicate, and if there’s an issue, for the online retailer to inform the customer quickly.
- Some orders require long lead times due to myriad factors, which can include custom fabrication and build-to-suit applications. The EDI 870 order status report transaction set enables vendors or suppliers to send a status update for an in-progress order to the retailer. This electronic document generally contains vendor information, order identifying information and an order status code and explanation. Vendors also use this form to keep customers updated on shipment schedule and delivery dates, which they then pass on to the end buyer.
- For orders with long lead times, large quantities or many line items, immediate fulfillment is not always an option. Manufacturers, wholesalers and suppliers can submit the EDI 856 advanced shipping notice and manifest transaction set, which includes tracking numbers and other shipment information. Retailers can use this information to keep online order statuses up to date and send email notifications to their customers.
Online retailers depend on EDI to move merchandise efficiently, which keeps their business model profitable. Communication with the manufacturers and suppliers of products sold online is one facet of EDI. It reduces manual labor and order turnaround time, which enables faster and more accurate order processing. Another benefit to EDI, however, is the ability for online merchants to have a customer-focused approach. Keeping customers informed creates a better user experience, which can generate even more orders.
Improve your drop shipping capabilities with the MyB2B solution from CovalentWorks.