You must have heard of drop shipping, its basics, and working procedure. Modern drop-shipping techniques and methods are not the same as before and have changed a lot in recent years. In today’s world, drop shipping is one of the most sort after e-commerce business models.
But did you know how and when it all started? Most people do not know how this model came about. I attempt to unravel the drop shipping model, how it grows, and how it becomes one of the most sort after ecommerce start up model in the world today.
How was Drop-shipping before internet days?
It all started when the Internet wasn’t even invented in the 1960s and ’70s. Drop shipping begins its life in mail order catalogs. These catalogs were used for advertising a wide range of items. You have to select the favorite item from the catalog and order it through your phone, and the company will deliver it directly to you.
First, mail order companies like JCPenney & Sears are beginner to use this method. This method was very profitable, but they were unable to meet customer demand. At that moment, when they find the need for another efficient way to deliver the customer’s order.
At that time, JCPenney & Sears came up with a fulfillment warehouse idea. They knew that with a growing business, they need a fast and efficient way, and warehouses can help them in the process. The main reasons for these warehouses were to store inventory in bulk. Another advantage of these warehouses is that all items can be easily located and shipped to customers.
At that time, a company called Compucard thinks about taking advantage of these huge warehouses. They list all the products available in the warehouse in their own mail order catalog and start selling them at a markup price.
Whenever a customer gave them an order, they buy it from the fulfillment center and let the warehouse deliver the order to the buyer’s address. That was the first drop-shipping entry-level model, and it was great. This drop shipping model is the same as the Amazon FBA (Fulfillment By Amazon) warehouse.
Drop shipping starts from the 60s, but from that time to now, it is one of the quickest and easiest ways to store inventory in bulk and also the easiest way to ship the order to the customer. Almost all companies like Amazon, e-bay, Ali-express are following this basic drop shipping model.