Definition
A B2B business arrangement between dropshipper and dropship agent for a product to directly ship from dropshipper (distributor or manufacturer) to dropship agent’s customer.
OR
An alternative wholesale method by supplier to dropship products directly to dropship agent’s customer.
Terms Involved
B2B = Business to Business
Dropshipper = A supplier/retailer which arrange product to sell and ship to customer, normally distributor or manufacturer
Dropship Agent = A business owner that sell dropshipper’s product to customer
Introduction
If you ever want to start your own online business, but trying to avoid to handle some hassle tasks like sourcing products, setting up warehouse, inventory arrangement, manage confusing shipping method, then dropshipping is your choice.
Dropshipping allow you to sell quality products on your own chanel like website, social media or blog at your own profits.
Although this dropshipping can be a huge boon for internet entrepreneurs, but you should know the advantages and disadvantages before started.
Advantages:
1) for those who have worry on inventory, dropshipping can help you save a lot in this matter. If you are someone that start from a low cost, saving on stock or inventory can help you a lot in your internet business.
2) No inventory mean no left over. Let say if the product sell is outdated or untrendy, then there will be a lot of stock storing in the warehouse, causing lot of space used. also many online retailers will need to offer discounts in order to clear out the stock, they will be taken a huge loss in profit in order for new inventory come in.
3) You can add in product in website instantly. This is because you no need worry about time taken for stocking.
4) Dropship is same as wholesale but can help you dropship to your customer at wholesale price. so basically dropshipper is also your supplier.
Disadvantages:
1) Too many dropshippers in the current market and too many competitors for you reasonably to successful in.
Suggest Spend some time to research the products you like to sell. Make sure the products are in demand but not too much in the market. Then, set up arrangement of dropship with your choice of dropshipper(supplier) of the products you want to sell. Whenever your dropshipper or supplier agree to help you dropship to your customer and success in the 1st deal, and you satisfy with them, continue to use their dropship service.
2) Unable to control the inventory condition
Some products may outdated after selling a period and may be withdraw from dropshipper/supplier websites. Or some products may sold out fast in some days. or new products bring in by supplier.
Suggest follow dropshipper/supplier newsletter, facebook, G+ in order to get updated news.
Offer
what will be the dropshipper/ supplier offer to you?
1) at wholesale price
2) Handle shipping for you
3) Use your company details in shipper section of delivery waybill so that your customer recognize the parcel is sent from you.
Awareness
Dropshipping is just another alternative wholesale method for those whose suffer in the financial problem when restocking inventory. It help you to ship from supplier warehouse A.K.A dropshipper to your customer under your business or company name. The supplier will be charge on your business or company Not on your customer. so basically dropshipper only deal with your company. Your customer will not even know dropshipper/supplier existence because your customer directly deal with your business/company. Please know that your dropshipper/supplier is your business privacy and no one outside your company should know about.
How Taobao/Tmall/1688 take part in dropshipping?
For those online business owner like to use taobao/tmall/1688, these online shopping sites with huge resource, you can just directly find your prefer products and get their URL link, send this link to your choice of taobao agent malaysia and place order.
Your taobao malaysia agent will help you check with your URL link sellers.
Do let your taobao malaysia agent know that you want dropshipping to your customer and you like to put your company details in the international shipping waybill during dropshipping.
Check with them their dropshipping service offer for taobao/tmall/1688.
