Understanding Dropship And Reseller With A Complete Explanation Of The
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Title : Understanding Dropship And Reseller With A Complete Explanation Of The
Difference
link : Understanding Dropship And Reseller With A Complete Explanation Of The
Difference
Understanding Dropship And Reseller With A Complete Explanation Of The Difference
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What Is Dropship And Reseller - Over time the world market is getting ahead. And now is the golden era of the global market. The global market that we know today is open and free, this is certainly not free from the influence of technology. With the convenience of shopping for products that we want with just one click, a successful transaction with the buyer. In the world of online marketplace selling techniques there are terms of dropship and reseller.
Then what is the meaning of dropship and reseller, what's the difference between the two? In this post, Wak Jamal will discuss it all along with a complete description of dropship and reseller.
Definition of Dropship and Reseller
1. Dropship
Dropship is an online trading system where the perpetrators do not need any material capital. The dropship technique, hereinafter referred to as dropshipping, guides the culprit to search for consumers of a product being marketed, while all the product rights are in the hands of the supplier or distributor. Only with skill and honesty in one's business can be a dropshipping agent. Dropshipping is also called a dropshipper.
The advantage that a dropshipper gains from dropshipping is from the profit sharing of goods sold based on the profit percentage agreed with the supplier. As for suppliers, it can capture a wide range of customers and products are also known to the public.
The convenience of dropshipping is that you don't need a place to hold stock. And you also do not need to send the product ordered because it is entirely the responsibility of the supplier or distributor. Your job is only to focus on finding target buyers and serving customer questions.
Dropship business process
The step by step of the dropshipping business is as follows:
1. The first step, we look for suppliers or distributors who open dropship. Search for the reliable can be seen from the testimony of dopshipping that had been. Know the product targets and make a profit sharing agreement.
2. If there are buyers who want to buy our dropship products, record the number of items ordered, contact with the buyer's address. Offer the price of goods (For example: Shoe products priced at 300 thousand). If the buyer is interested, the buyer will transfer money to you according to the value offered.
3. After that, immediately contact the distributor of goods, then give the address of the consumer earlier. The procedure, we first transfer the money to the supplier according to the price determined by the supplier itself (For example: 250 thousand). Later distributors or suppliers send goods to the buyer's address from us earlier.
4. Now, from the price difference that we offer at the price of the supplier, that's the benefit that the dropshipper can get. Sometimes the dropshipper sets its own price, but in other cases the selling price of the dropshipper is also regulated by the supplier, for example on electronic products.
In the calculation of the dropship business is minimal risk, but there are other obstacles that sometimes complicate the process of dropshipping. The constraint is the limited amount of inventory, there are product defects and complaints from consumers because all of that has a direct relationship to us.
Therefore we must know the reputation of the supplier. Can be seen from the catalog of products sold and buyer testimonials. Furthermore, only our ability to market these products. No need for qualified marketing knowledge. If you are studious, consistent in promotion, friendly to consumers, and build good communication with suppliers or distributors, then you have the capital to become a great dropshipper.
2. Reseller
Resellers are slightly different from dropship, if the dropship does not require any capital at all, the reseller system is required to have an inventory of goods to be resold to consumers. The initial step in undergoing a reseller is to contact the manufacturer of a product and then buy goods in large quantities or wholesale.
Also Read: Want Extra Pocket Money? This Is A Business That Can Be Applied in School Time
In terms of process, resellers are simpler than dropshipping. There are only two processes in the reseller technique, namely buying goods in bulk at large quantities, then reselling to consumers. We as resellers will do customer service directly without intermediaries. Our substance is as a reseller, as a final-level retailer who sells goods individually.
Comparison of Dropship and Reseller
And this is the core part of the post, what are the comparative dropship and reseller techniques and their presentation.
1. Dropship does not require capital while the reseller certainly buys goods as capital.
2. Resellers directly carry out transactions directly with consumers. Whereas the dropshipper is only as an intermediary then the process of transaction and delivery of goods is carried out by the supplier / distributor.
Therefore the dropshipper must always maintain a good relationship with the supplier because his business is very dependent on the supplier.
3. Resellers are free to arrange the inventory of goods with adjusted capital. As for the dropshipper This is the obstacle, the dropshipper does not know fully how much stock is available and how detailed the condition of the goods is.
4. Dropship techniques can only market products online, why is that?
Because the dropshipper usually doesn't have a place / store in the real world, so sales effectiveness is only in cyberspace. Whereas resellers easily introduce goods to the public both in the real world and in cyberspace.
5. The risk of loss is smaller for the dropshipper than the reseller. Because of the capital requirements I mentioned above earlier.
6. Dropship is usually found in small or brand new products such as snacks, clothes, accessories, cosmetics or household appliances. While resellers are certainly only big products such as electronic devices, smartphones, funiture, clothing, and other products. Hi, this certainly does not happen absolutely, it could be other things that you encounter.
7. Resellers will become a long-term business if they are engaged because resellers naturally have a place, loyal customers, and brands. Whereas dropship is usually only used as a sideline. But in other cases many successful people start from dropshipping and finally have their own shop.
Thus posting the Dropship and Reseller Differences along with a Full Explanation from Wak Jamal this time. As for all things that are useful, hopefully can become knowledge and provision as a dropship or reseller. And for those who just want to know what dropship and reseller are, hopefully they can give a satisfying answer.
Finally, I thank you for visiting and enjoy your activities.
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