Post by ShapanMBV on Nov 8, 2023 21:27:32 GMT -8
Some companies prefer to produce goods directly while others prefer not to have warehouse stock. To meet the different needs of those who sell, there are different business models, each with its own peculiarities. 1. Dropshipping It is perhaps the simplest and most common form of eCommerce. This model requires the merchant to sell a product to the end customer, without owning the product. In this way, the seller is exclusively concerned with the marketing of the products, without the related tasks related to the production, packaging and shipping processes which are, instead, the responsibility of the supplier.
Once the transaction has been completed, the seller will transmit the order to the supplier (dropshipper), who will ship the product directly to the buyer. The eCommerce platform, therefore, has the sole purpose of web designs and development service processing the payment and acting as a bridge between the customer and the supplier, transmitting the purchase order to the latter. In this model there are no production, warehouse, shipping and packaging costs. However, the actual profit may be small as suppliers often set sales prices that limit offers and discounts. Furthermore, as we have no control over shipments, should there be a delay or mix-up.
On the part of the supplier, adequate customer assistance will need to be provided. Even if a large initial investment is not required in terms of purchasing the goods, both economic and time investments must be made for marketing and promotional activities and above all for finding the right suppliers. This business model can be indicated both in the startup phase and when you want to start marketing products not yet present in the reference market, using a supplier from another country as a dropshipper. In the latter case it is a good idea to check the international regulations on the importation of goods.
Once the transaction has been completed, the seller will transmit the order to the supplier (dropshipper), who will ship the product directly to the buyer. The eCommerce platform, therefore, has the sole purpose of web designs and development service processing the payment and acting as a bridge between the customer and the supplier, transmitting the purchase order to the latter. In this model there are no production, warehouse, shipping and packaging costs. However, the actual profit may be small as suppliers often set sales prices that limit offers and discounts. Furthermore, as we have no control over shipments, should there be a delay or mix-up.
On the part of the supplier, adequate customer assistance will need to be provided. Even if a large initial investment is not required in terms of purchasing the goods, both economic and time investments must be made for marketing and promotional activities and above all for finding the right suppliers. This business model can be indicated both in the startup phase and when you want to start marketing products not yet present in the reference market, using a supplier from another country as a dropshipper. In the latter case it is a good idea to check the international regulations on the importation of goods.