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Drop Shipping & Third-Party Logistics

If you are selling physical products you will need to warehouse, and eventually ship your products to your customers. Alternatively, you can have suppliers or manufacturers fulfil orders on your behalf (drop shipping) or utilize the services of a third party logistics provider (3PL).

Drop shipping

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the supplier or manufacturer for fulfilment.

Neto makes drop shipping easy by supporting multiple drop ship suppliers per order, automatically splitting orders for multiple drop ship suppliers and delivering drop ship orders by email, FTP or a web service. Drop ship suppliers can also login to your Neto supplier portal to process orders on your behalf.

Benefits of Drop Shipping

  • Low setup costs
  • Low ongoing costs
  • Fast implementation

Negatives of Drop Shipping

  • Loss of control
  • Traditionally lower margins due to handling fees and inability to buy stock in bulk

3rd Party Logistics (3PL)

A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a company that provides a one stop shop service to its customers of outsourced (or “third party”) logistics services for part, or all of their supply chain management functions. This includes warehousing products, picking, packing and sending orders on the merchants’ behalf.

Neto integrates with a number of 3rd party logistics providers and also offers its own 3PL service through its partner, Cellnet Logistics ( This complete logistics service is ideal for businesses of any size and allows you to focus on selling, while we focus on delivering your products to your customers for the best possible price.

Benefits of Cellnet’s 3PL Service

  • Automated integration with your Neto back-end
  • Complete scalability
  • Economies of scale
  • Peace of mind
  • Reliable delivery
  • Simple cost structure
  • Flexible & customised solutions
  • Transparency
  • Specialised reporting
  • Best practice inventory control
  • Importing or sourcing assistance
  • Increased speed to market
  • Professional customer experience
  • Industry expertise

Setting up dropshipping

See our guide on setting up dropshipping on Neto.

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Last Modified: 29/09/2017 Neto Version: 6.3