In an era that is now undergoing digitalization, buying and selling activities can also be done online. No wonder, nowadays we often hear the term dropship and reseller. Both the dropship and reseller sales systems sell goods that have been produced by other parties. So, are the dropship and reseller systems just different terms? Of course not, because the dropship system and the reseller system have the following differences.
1. How it works The dropship system is actually a business that proposes online marketing so that businesses in this field don’t need to think of a place to store their stock of sales items. If there is an order, then a dropshipper contacts the vendor and asks him to send the ordered items to the customer’s address. Meanwhile, resellers run their business by reselling products, both goods and services from distributors.
2. Inventory When we become a dropshipper, we don’t need to buy goods from suppliers because we only become third parties between buyers and suppliers. Therefore, the most important thing for a dropship businessperson is finding customers, helping with the ordering process, and ensuring the delivery process is done. Unlike the case with a reseller who buys goods from a supplier and then makes the goods in stock sales.
3. Capital Because there is no need to buy goods to sell, a dropshipper does not need to prepare capital. At the very least, what is needed is a stable internet connection so that it can communicate smoothly. Another case with a reseller who needs to prepare capital to buy goods that he will later offer to buyers.
4. Marketing Strategy To offer products to prospective buyers, a reseller can do it directly because he knows how much stock he has. However, a dropshipper cannot do the same thing, because he does not know how much inventory the supplier has. This also makes dropshipper more advised to promote their products through social media and instant messaging.
When compared, a dropshipper and reseller certainly has different challenges. There are those who can offer products directly, but there are also those who can run businesses with minimal capital.