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    1. SmartInvestor is offline

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      #1

      What Is IPD Shipping? Can I Use It With Dropshipping?

      Hi all. I needed to find out what is IPD shipping? It is being touted as some kind of miracle cure for all shipping problems but Im not sure how it works.

      Plus, can I use it with drop shipping? Or should I not?

      Please advise.
      Buy the cheapest wholesale and dropship
      goods sold at up to 95% off Retail Price!

    2. Marketguru's Avatar
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      #2
      IPD shipping is basically short for FedEx International Priority Direct Distribution. It is a contractual service that allows a reseller to ship many different pieces from a single location in the origin country to multiple recipients or addresses in another single destination country. It is essentially the term used for the electronic consolidation of multiple shipments from one shipper to many different recipients. Some of the many benefits of this system include:

      1. Economies of scale for all concerned.
      2. Lower risk of inventory obsolescence.
      3. Each shipment can be easily tracked from point of origin to destination.
      4. Better control over warehouse and inventory management
      5. Lower warehousing costs
      6. Reduced transit time due to streamlined procedures.
      7. Simplified documentation and packaging
      8. Better customer service and broker support.
      9. Lower customs costs and delay due to consolidated clearance
      10. Better reliability and productivity all around.

      To answer your second question, IPD shipping can be combined with drop shipping. The drop shipper will simply add the fedEx charges to their own fee structure. Make sure to negotiate the best rate possible.
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    3. Lewis 23 is offline

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      #3
      FedEx priority distribution service is greatly used in combination with drop shipping.

      I think it’s overall, a great consolidated distribution system that provides a time definite door to door, full solution service. Which in turn gives the seller complete peace of mind not to mention time to focus on other more productive tasks. The first time I tried it, I realized that it translated to a huge cost saving because it is a clean replacement using multiple distribution channels and the headache that goes with it. The best thing is that you no longer have to work with any kind of cost estimates. You know exactly how much the whole operation will set you back by since you get a quote before you start.

    4. Hugh's Avatar
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      #4
      IPD shipping is also a whole lot faster than shipping each piece individually. This reduced cycle time can be a great source of competitive advantage. Plus sellers are free to explore new markets without the risk of running into financial overruns and other unpredictable roadblocks since some expert has already done the math. You basically get to leverage the power of a giant like FedEx – piggy back on their distribution might so to speak.

      This, coupled with the inherent advantages of drop shipping – no inventory risk, no logistical hassles can be a great recipe for success.

    5. Avtarguy is offline

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      #5
      I think IPD shipping is a very clean, very elegant service that is worth every penny is costs. I feel so much more in control knowing that one vendor is coordinating everything. Instead of speaking to 10 different people in 10 different time zones, I just have to stay connected to one single point of contact. Let me put down some specific benefits that I have experienced:

      1. As an individual reseller, this service has freed up a lot of my time that went waste in chasing up deliveries or following up on customs clearance.
      2. I have been able to simplify my complete order management to delivery cycle and am seeing huge savings.
      3. My customers have all been very happy with the delivery time and service in the past month since I have started using IPD shipping.

      Using IPD shipping in combination with drop shipping can take up your costs to quite an extent. You usually need reasonable scale to make that kind of arrangement viable; I would advise going over the financials once to see how much profit you are left with.

    6. SmartInvestor is offline

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      #6
      Are there any disadvantages in this kind of arrangement? I mean why doesn’t everybody do it?

    7. Marketguru's Avatar
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      #7
      If your volumes are small, the expense may not be justified. It also takes away some amount of personalization not to mention control from your hand which many people are not totally comfortable with.

      Also using IPD shipping with drop shipping makes sense if the cost to you is less than the sum of the parts. Once you have paid the drop shipper a certain fee to take care of the shipment, adding an IPD shipment cost from your pocket may not always make sense.

      Large enterprises with huge consignments benefit more from this kind of arrangements because they get economies of scale. To give you an example, shipping 10 packets to 10 cities is not 10 times more expensive than shipping 1 packet. The difference in cost between 5 and 10 packets is not perfectly proportionate, in cases it may be very small – You need to see if the benefits are worth the costs.

    8. Lewis 23 is offline

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      #8
      I don’t see any disadvantage in using either drop shipping or IPD shipping provided you don’t make a loss. Even if you stay marginally profitable, delegating such low value jobs to professionals allows you to expand your real value work as well as work towards furthering your customer satisfaction scores.

      Resellers should focus on maximizing volume / revenue as long as they are making money.

    9. Avtarguy is offline

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      #9
      But you need to have x packages to send to x locations without that it is really of no use. Hence it makes sense only if you find yourself in a situation requiring multiple deliveries.

      In any case my suggestion would be to speak to your drop shipper and work out the rates depending on the shipping method that they are using. A simple UPS should cost less while IPD shipping will probably be estimated differently. Ultimately it is a business decision.

    10. Hugh's Avatar
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      #10
      I have another point to add. Shipping delays and non receipts are said to be the number one cause of complaints by customers. These are the very issues that cause low feedback scores and negative comments. No single individual is capable of dealing with multiple shipments without goofing them up. IPD shipping is not an extra cost – it is actually a saving over what you or your drop shipper would spend otherwise.

      My suggestion would be to not compromise on quality / time of delivery to customer. Quick delivery can give a serious competitive edge in the marketplace.

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