In the past few decades, the number of entrepreneurs in Indonesia has increased greatly. With the help of the Internet, it is easier for domestic products to compete in the international market. In the world of online business, he is certainly no stranger to the terms dropship and reseller. Both are responsible for promoting products, but both dropshipping and resellers have their own advantages. then between dropship vs seller, which one is better ?
What is Dropshipping?
A dropshipping business is a way of selling that allows shop owners to avoid keeping inventory. So that when the customer comes to buy, the shop owner can directly order it from the supplier or the provider of the goods. The supplier ships the ordered product directly to the customer.
In the dropship system, both the product owner and the customer know that the person responsible for the dropship is actually an intermediary. With this openness, the price increase offered will not be too high. Generally, the product owner gives a price limit to the dropshipper who sells their product.
Dropshipping business steps
Of course, the steps to be taken between dropship and reseller are different. The first thing you will do as a dropshipper is to determine the items you want to sell. In addition to determining the product to be sold, you must also determine the target market. If you want to sell a custom case with an on-demand photo, choose the youth-to-adult market.
After determining your product and target market, it’s time to look for an online store that sells custom cases. The chosen online store cannot be just any online store, choose a store that accepts dropshipper services. You can send a message to register as a dropship agent for the online store.
After finding an online store that suits your needs, you can create a case design and upload it to your online store. When a customer wants to purchase a product, you can place an order directly through the supplier by requesting direct shipping of the ordered item to the customer.
Advantages of Dropshipping business
With a simple and practical system, this dropship business is very popular. There are many benefits that can be gained from a dropship business, but the first one is that as a dropshipper you don’t need to offer stock. So that you, as a shop owner, don’t need to invest millions of rupees, just to prepare the warehouse and store infrastructure.
In addition to being more efficient, dropshipping is also easy to do. In dropship vs reseller, both of them have their own convenience, but dropship is more convenient for those who don’t know about the business world. Store owners don’t need to learn the warehousing system, they don’t need to do the packing or shipping process, so they don’t need to take full responsibility when the goods are delivered wrong.
In case of non-delivery of the goods, the person who should be responsible is the owner of the goods. Because the person who is responsible for the delivery problem is the owner of the product, so dropshippers will not be responsible or know anything about the process of sending the product.
What is a Reseller?
The reseller business system is similar to the regular business system, but the dealer system uses the help of the Internet. This means that a reseller is a person who resells or resells a product to consumers at a price difference that is profitable for the seller.
Basically, the seller takes some stock from the distributor or product owner and sells it at a higher price. In general, distributors price the product much cheaper than the market price, so sellers take advantage by raising the price during resale.
Sales agent business steps
The steps taken between dropship and reseller are almost the same, i.e. determining the product to be sold. The first thing you should do is to research the product you are going to sell in advance. This research is how many potential buyers will buy the product and also the estimated profit. Once you get what you want, you can open your shop.
From the number of items you sell, order the right amount of items based on previous research. This means that when item A is in higher demand than item B, then order more stock of item A. The percentage of goods ordered through distributors should match the potential buyers.
If there are customers who will buy the product, prepare the packaging and send it directly to the buyer. In becoming a seller, it is the seller who handles the sales process until the goods are delivered. When you become a reseller, it’s easy, you get some inventory items from a distributor and then resell them and ship them directly or through a delivery service.
Commercial benefits of sales representatives
Between dropship and reseller, the benefits are definitely different. The advantage of a selling business is that business people can make more margin, seeing the price it sells for is an increase in the price you can set yourself. Being a seller means you can determine the benefits for yourself. Therefore, it is possible that the margin percentage is even higher.
With the reseller system, you can quickly expand your business. This is because a seller can have a vehicle to sell goods. When you are good at starting a sales business, you can quickly expand your business.
The expansion of business here can be in the form of increasing the stock of goods so that it is possible for consumers to order more. With the increase of these consumers, the number of sales of your online store will also increase. You can also sell goods in different markets with the knowledge you have gained from sales experience.
Difference between Dropship and Reseller
There are significant differences in understanding, steps, and benefits gained by each system. The most obvious difference between dropship and reseller is in the sales system. If the dropship doesn’t need to provide stock, then a reseller must provide stock just like the original seller owner.
Margins obtained by dropship and resellers are also different. For dropship, the margin is actually small, because the owner or distributor of the product determines the markup. But not with the sellers, in the sellers they are free to determine the increase in the price of the goods being sold.
which one is better ?
In fact, there is no one system that is the best, because each system or method must have its own advantages and disadvantages. If you don’t know about business problems, becoming a dropshipper is definitely the right choice.
As for sellers, of course, it is very suitable if you really want to be serious in the business world. Being a seller has its problems, almost like launching your own brand, but sellers are still helped because it is not difficult to find a brand name or image. Even by becoming a reseller, you can determine the benefits you want to get.
In today’s online business world, a Dropship Not the seller It is in high demand because both dropship and resellers provide benefits to distributors. Even if they have a similar task, i.e. selling or promoting a product from a supplier. However, these two methods have different advantages. After knowing these benefits, are you interested in becoming one of them?
