As you might heard the term dropshipping before, this online business allows you to sell products without stocking any inventory. As a dropshipper, you purchase the items from manufacturers, wholesalers, and/or suppliers then fulfill orders from customers.
You don’t need to stock items you sell, provide place to store items, or ship items to the address. Once customers buy an item, complete the transaction, you will able to fulfill their order to be processed by manufacturers, wholesalers, and/or suppliers that ship directly to the customer. In a word, dropshipper doesn’t have to handle the items directly.
What is the difference of reseller and dropshipper? Term of reseller is defined as someone who purchases items, stores them, and deliver (selling) directly to customers. A reseller required to stock and store items before sell them. At the same time, reseller business allows you to create your own brand.
Both allow to be profitable, reseller set higher markup than suppliers charges, while dropshipper set higher prices based on suppliers charges product cost. The difference between the price charged is their cost advantage.
Different from reseller has to tie up huge amounts of capital purchasing inventory, dropshipper don’t have to purchase a product and run the business with very little money. When it comes to dropshipping, you are required to provide product photos and specification. You can also use available photos from suppliers to make things much easier.
Dropshipper surely sell vary items (products) from different manufacturers, wholesalers or suppliers, but you need to make sure you are staying current with best products people need. Identifying your target market, choose a specific one that has potential to buy your products.
Besides, picking the wrong manufacturers, wholesalers or suppliers is the main reasomn for your dropshipping business to fail. For the most part, issues with orders, delay in delivery, bad packaging, slow response and other common issues put your reputation on a bet.
Therefore, survey is a good start to find right manufacturers, wholesalers or suppliers. Understand pricing, quality, and quantity decision. Also make sure they provide quality courier service that more aware of timelines of deliveries that help increase customers satisfaction.