What Is A Partial Shipment?
Partial shipments are one of the most exciting developments in e-commerce. They allow you to ship partial orders to customers as they’re needed, rather than waiting until the placement of an entire order. Partial shipment is the delivery of a specific order in more than one shipment.
Benefits of Shipping Partially
Partial shipments provide multiple benefits to each company. Specifically:
- Partial shipments are a cost-effective solution
- They decrease the chances of overstocking and understocking. Specifically, they help in reducing the risk of out-of-stock items. When orders are filled in partial batches instead of one large batch there is less risk that the entire order will be lost due to overstocking or understocking.
- Partial shipments also help you avoid storing large amounts of finished goods or raw materials. If there’s no need to store, you don’t have to worry about paying for extra space, employees, equipment, and insurance. This can be especially helpful in countries with high taxes and expensive utilities.
- They are also a great way to improve cash flow. That’s because you can use the money you receive from the partial shipment to pay for other products before they’re shipped. This can help you in reducing the amount of capital sitting in inventory.
Disadvantages of Shipping Orders Partially
Partial shipments are a great way for customers to get the products they need before the end of the quarter, but there are some disadvantages to this practice. Here are some of them:
- Partial shipments may be confusing for customers. A customer may not know how much is left in the order. A partial shipment might be confusing because of the number of orders in a given time period or because they’re coming from different locations.
- Partial shipments add up over time and can affect your bottom line if you’re not careful. If you’re sending partial shipments on a regular basis, then it could be costing you money. If you have several orders that are being shipped out in separate boxes or even just different parts of one box, then it can add up quickly and cause problems with shipping costs as well as storage space requirements.
- Shipping costs might be higher than expected. Especially when you send partial shipments that involve multiple destinations and each destination has its own set of rules regarding shipping rates and regulations.