With the Covid-19 lockdown, you will notice that many of the wholesale hair suppliers are advertising that they will ship directly to your customer. That is nothing other than drop shipping.
Drop shipping has been around for ages and is a well-established supply chain management method but has really come to the forefront now with the Covid-19 lockdown in place. With drop shipping, the retailer (i.e. you – the salon owner) receives an order from your client (i.e. the end user) but instead of fulfilling the order yourself with stock that you’ve pre-bought, you transfer the order to your wholesaler (i.e. the supplier) for delivery and shipment directly to your client.
How it works:
- Your customer places an order with you.
- Your client pays you at retail price for the products and shipping, if applicable.
- You send the order to us (via WhatsApp, phone, email or via the website).
- We invoice you at salon price for the products and shipping, if applicable.
- You pay us.
- We prepare the order.
- We deliver directly to your customer.
What are the advantages of drop shipping to you as salon owner?
- You do not have to pre-buy any stock. This will alleviate the burden on your cash flow dramatically and you will have more cash available for other obligations, such as wages or rent.
- You do not have to carry any stock. This will free up space in your salon for service stations. Furthermore, you do not have stock to insure, thus a further saving on insurance in case of fire or theft.
- You do not have to struggle to recover money from your clients as shipment will not occur before payment is received. No payment, no delivery, no risk to you later on.
- You can now earn an income from anywhere, anytime and is not restricted to your salon. So whether you are at home for the lockdown or on Christmas vacation, drop shipping is available to supply your customers immediately.
- You never have to handle stock yourself. No packaging costs, no tracking of orders.
- With drop shipping you can offer clients a bigger selection of products since you do not have to buy the stock upfront with limited cash resources available.
How we do drop shipping differently:
- You earn your profit immediately… before shipping. Your client still pays you directly at retail price. You only pay us salon price. Your profit is immediately yours and you do not have to wait for the wholesaler to calculate and pay out any commission that is due to you.
- We do not compromise your margin. The same retail and salon prices applies as if you pre-bought the stock from us. No extra subscription, handling or administration fees are charged.
- You can place orders via any means you choose (i.e. WhatsApp, phone or email) and is not forced to place orders on our website. The latter does hold the advantage that you will immediately be able to see whether any products are out of stock. That feature is not available if you place orders via WhatsApp or email.
- As we are a professional haircare range, we do not sell directly to the public. You register your salon on our website and place the order on behalf of your client, using their address as the delivery address. Except for delivering the products to your client, we have no further dealings with your client. He/she remains your client at all times and we cannot poach them from you.
- We provide you with electronic or online product catalogues and product information. But you decide yourself which products you want to market to your clients. No forced bulk purchases or combo deals from us. Let us know if you want us to send you product catelogues and pricelists by emailing email@example.com.
- Our normal rules for shipping applies. We ship free on all orders over R1000. For orders under R1 000 as shipping fee of R100 applies. It is totally your choice as to whether you want to absorb this cost yourself or on-charge it to your client.
- We have no minimum orders or opening order quantities. If your client wants to order 1 shampoo we will deliver 1 shampoo. Normal freight rules apply.
Everyone is switching to drop shipping. Maybe it is time that you do to.