This website uses cookies. Cookies remember your actions and preferences for a better experience of using the site. We do not share information with third parties without your knowledge. By continuing to use this site, you agree to our public offer and privacy policy.
Blog - Dropshipping. For seller and supplier
How to open your own shop without paying rent for a warehouse? How to sell goods and not have to make deliveries? How, without spending a huge amount of money, to make a profit and check the demand?
It's quite simple. Dropshipping is a sales scheme where the seller makes a profit by selling goods they don't have in stock. The supplier is responsible for the delivery of the goods, as well as their quality.
Dropshipping is a low-risk business model that allows you to avoid freezing your money in goods and fearing that they may be spoiled or unclaimed.
This model is popular with both those who want to try out the business and those who want to check out a niche or increase the range of their online shop. At the same time, it doesn't have to deal with its stocking and shipment.
It's quite simple. Dropshipping is a sales scheme where the seller makes a profit by selling goods they don't have in stock. The supplier is responsible for the delivery of the goods, as well as their quality.
Dropshipping is a low-risk business model that allows you to avoid freezing your money in goods and fearing that they may be spoiled or unclaimed.
This model is popular with both those who want to try out the business and those who want to check out a niche or increase the range of their online shop. At the same time, it doesn't have to deal with its stocking and shipment.
The dropshipping chain
The dropshipping sales chain involves the end consumer (customer, buyer), the dropshipper (seller of goods, trades on their own behalf) and the supplier (manufacturer, retailer, wholesaler) who is responsible for the quality of the goods and their delivery to the end consumer.
Finance
The financial relationship between supplier and dropshipper can either be based on the dropshipper retaining his percentage after the buyer pays for the order. Or, if the supplier receives payment for the goods, he transfers a percentage of the transaction to the dropshipper.
Dropshipping from the supplier's perspective
The dropshipper is a good deal for the producer and the supplier. He does the work of the sales and marketing departments: he looks for customers, promotes the product, invests his time and finances in its advertising. It is profitable!
The more dropshippers sell the supplier's goods, the faster the goods turn over, the more popular the brand becomes and the bigger the presence on the market. The dropshipper has his own online shop, social media accounts, he is interested in sales and customers. Thus, the supplier's goods are offered by several marketplaces, and experiments with promotion and advertising costs do not concern him. In a highly competitive niche, the goods are presented online by different companies. This is profitable!
At the same time, in order to avoid dumping in the network of its dropshippers, the supplier has to control and recommend prices below which they should not go. This is a disadvantage.
The dropshipping sales chain involves the end consumer (customer, buyer), the dropshipper (seller of goods, trades on their own behalf) and the supplier (manufacturer, retailer, wholesaler) who is responsible for the quality of the goods and their delivery to the end consumer.
Finance
The financial relationship between supplier and dropshipper can either be based on the dropshipper retaining his percentage after the buyer pays for the order. Or, if the supplier receives payment for the goods, he transfers a percentage of the transaction to the dropshipper.
Dropshipping from the supplier's perspective
The dropshipper is a good deal for the producer and the supplier. He does the work of the sales and marketing departments: he looks for customers, promotes the product, invests his time and finances in its advertising. It is profitable!
The more dropshippers sell the supplier's goods, the faster the goods turn over, the more popular the brand becomes and the bigger the presence on the market. The dropshipper has his own online shop, social media accounts, he is interested in sales and customers. Thus, the supplier's goods are offered by several marketplaces, and experiments with promotion and advertising costs do not concern him. In a highly competitive niche, the goods are presented online by different companies. This is profitable!
At the same time, in order to avoid dumping in the network of its dropshippers, the supplier has to control and recommend prices below which they should not go. This is a disadvantage.
Dropshipping from the seller perspective
The dropshipper is a good deal for the producer and the supplier. He does the work of the sales and marketing departments: he looks for customers, promotes the product, invests his time and finances in its advertising. It is profitable!
The more dropshippers sell the supplier's goods, the faster the goods turn over, the more popular the brand becomes and the bigger the presence on the market. The dropshipper has his own online shop, social media accounts, he is interested in sales and customers. Thus, the supplier's goods are offered by several marketplaces, and experiments with promotion and advertising costs do not concern him. In a highly competitive niche, the goods are presented online by different companies. This is profitable!
At the same time, in order to avoid dumping in the network of its dropshippers, the supplier has to control and recommend prices below which they should not go. This is a disadvantage.
Dropshipping is not perfect and has its pitfalls.
The seller relies entirely on the 'purity' of the supplier. Even after you have tested the product, you never know what or how to send it to your customers. It is difficult to tell whether a product's quality matches its description and whether it is real just by looking at the product catalogue. You have to trust the information provided by the provider. This is a risk.
It is advantageous to work directly with a product manufacturer or dealer. However, you will often run into middlemen who are not responsible for the quality or the apparent availability of the goods in stock. The earnings of dropshippers are minimal because they buy back the goods. This is a disadvantage.
Image losses are undesirable in any business. The dropshipper has no control over the delivery process. If the supplier makes a mistake, sends the wrong product, packs poorly, or delays delivery, a dissatisfied customer is unlikely to return to the seller's website. This is a disadvantage.
Running a business
Starting a business and managing it are two big differences. To start an e-commerce business based on dropshipping, it is first of all worth doing extensive research: check the competitors' market, find suitable products, study suppliers.
Over time, you will have to take on issues: marketing, search engine optimization (SEO), online shop visibility, product quality and customer support.
By focusing on the expansion and development of the business, the dropshipper gets a smooth increase in profits with a small investment.
LLC «Tradittex Solution» is dedicated to finding profitable niches for its partners and customers. Tradittex Solution's marketers analyse the competitive environment and develop business-specific marketing plans.
The dropshipper is a good deal for the producer and the supplier. He does the work of the sales and marketing departments: he looks for customers, promotes the product, invests his time and finances in its advertising. It is profitable!
The more dropshippers sell the supplier's goods, the faster the goods turn over, the more popular the brand becomes and the bigger the presence on the market. The dropshipper has his own online shop, social media accounts, he is interested in sales and customers. Thus, the supplier's goods are offered by several marketplaces, and experiments with promotion and advertising costs do not concern him. In a highly competitive niche, the goods are presented online by different companies. This is profitable!
At the same time, in order to avoid dumping in the network of its dropshippers, the supplier has to control and recommend prices below which they should not go. This is a disadvantage.
Dropshipping is not perfect and has its pitfalls.
The seller relies entirely on the 'purity' of the supplier. Even after you have tested the product, you never know what or how to send it to your customers. It is difficult to tell whether a product's quality matches its description and whether it is real just by looking at the product catalogue. You have to trust the information provided by the provider. This is a risk.
It is advantageous to work directly with a product manufacturer or dealer. However, you will often run into middlemen who are not responsible for the quality or the apparent availability of the goods in stock. The earnings of dropshippers are minimal because they buy back the goods. This is a disadvantage.
Image losses are undesirable in any business. The dropshipper has no control over the delivery process. If the supplier makes a mistake, sends the wrong product, packs poorly, or delays delivery, a dissatisfied customer is unlikely to return to the seller's website. This is a disadvantage.
Running a business
Starting a business and managing it are two big differences. To start an e-commerce business based on dropshipping, it is first of all worth doing extensive research: check the competitors' market, find suitable products, study suppliers.
Over time, you will have to take on issues: marketing, search engine optimization (SEO), online shop visibility, product quality and customer support.
By focusing on the expansion and development of the business, the dropshipper gets a smooth increase in profits with a small investment.
LLC «Tradittex Solution» is dedicated to finding profitable niches for its partners and customers. Tradittex Solution's marketers analyse the competitive environment and develop business-specific marketing plans.
Ukraine, 61070, Kharkiv region, Kharkiv city, Akademika Proskury Sstreet 1, office 207