Drop shipping

Term from Retail industry explained for recruiters

Drop shipping is a retail business method where stores don't keep products in stock themselves. Instead, when a store sells a product, they purchase it from a third party who ships it directly to the customer. It's like being the middle-person between suppliers and customers, but without handling the physical products. This approach has become very popular with online stores because it requires less upfront investment and no warehouse space. Think of it as running a store without actually storing any inventory – the supplier handles storage and shipping while the retailer focuses on marketing and customer service.

Examples in Resumes

Managed an online store using Drop shipping model with $50,000 monthly revenue

Established relationships with Drop ship suppliers across multiple product categories

Implemented Drop shipping operations for company's e-commerce platform

Coordinated with Drop shipper partners to ensure timely order fulfillment

Typical job title: "Drop shipping Managers"

Also try searching for:

E-commerce Manager Drop Ship Coordinator Supply Chain Specialist Online Retail Manager E-commerce Operations Manager Fulfillment Coordinator Retail Operations Specialist

Example Interview Questions

Senior Level Questions

Q: How would you handle scaling a drop shipping operation from 100 to 1000 orders per day?

Expected Answer: A strong answer should cover supplier relationship management, automated order processing systems, customer service team expansion, and quality control measures across multiple suppliers.

Q: What strategies would you implement to manage supplier relationships and maintain product quality?

Expected Answer: Should discuss supplier vetting processes, performance metrics, quality control systems, and communication protocols for handling issues like out-of-stock items or shipping delays.

Mid Level Questions

Q: How do you handle customer service issues specific to drop shipping?

Expected Answer: Should explain approaches to managing shipping delays, product quality issues, tracking multiple suppliers, and maintaining good customer communication despite not having direct control over fulfillment.

Q: What systems do you use to track inventory across multiple suppliers?

Expected Answer: Should describe experience with inventory management systems, supplier integration methods, and processes for preventing overselling of products.

Junior Level Questions

Q: Explain the basic process of drop shipping from order to delivery.

Expected Answer: Should be able to outline the basic flow: customer places order, retailer forwards order to supplier, supplier ships to customer, and how tracking and updates are managed.

Q: What are the main differences between traditional retail and drop shipping?

Expected Answer: Should understand key differences like inventory management, shipping responsibility, and the role of the retailer in the process.

Experience Level Indicators

Junior (0-2 years)

  • Basic order processing
  • Customer service management
  • Understanding of e-commerce platforms
  • Basic supplier communication

Mid (2-5 years)

  • Supplier relationship management
  • Inventory tracking systems
  • Order fulfillment optimization
  • Problem resolution

Senior (5+ years)

  • Strategic supplier partnerships
  • Large-scale operations management
  • Team leadership
  • Business development

Red Flags to Watch For

  • No experience with customer service or order management
  • Lack of understanding of shipping and logistics
  • Poor communication skills
  • No experience with e-commerce platforms or retail operations