Dogzily.com – What Is The Difference Between eCommerce and Dropshipping? Online business is now increasingly mushrooming. One of the most popular types of online business is buying and selling through e-commerce.
When talking about e-commerce, it will not escape the work or services of a reseller and dropshipper. Although there is a difference between reseller and dropship, not many people know the difference in detail.
Especially for people who are just starting an online business. Therefore, let’s look at dogzily.com review of the differences between resellers and dropshippers below.
Lets Find Out What Is The Difference Between eCommerce Reseller and Dropshipping
Knowing the difference between reseller and dropship is very important, you know, as basic knowledge in the online buying and selling business. Later if you want to start selling, you can choose which system best suits your abilities.
The following is the difference between eCommerce and dropshipping in general in the scope of buying and selling online through e-commerce.
What Is The Difference Between E-Commerce Reseller & Dropshipper?
Reseller on eCommerce and Dropshipping, both are jobs that people do by selling goods from suppliers. However, there is a fundamental and significant difference between reseller and dropship. The first difference between resellers and dropshippers is in terms of stock of goods.
A reseller generally must have stock of goods for sale. Although some suppliers allow their resellers not to take stock first if no one has ordered. This is different from dropshippers who don’t need to stock up on goods at all.
The second difference between reseller and dropshipper lies in the capital. Because resellers generally have to buy goods first as stock, resellers tend to have initial capital to sell.
Meanwhile, a dropshipper whose job is to focus on sales and dealing directly with consumers, generally does not require stock so you can start even without capital.
The third difference is in terms of marketing or marketing. Marketing and promotion can be done by a reseller flexibly because generally the reseller holds the goods directly. While this does not apply to dropshippers.
Because dropshippers do not hold stock of products and goods, dropshippers can only sell through the marketplace or social media with promotional materials that have been provided. Still in terms of marketing, resellers are usually facilitated by more complete promotional media than dropshippers.
Fourth, in terms of shipping, there is a difference between eCommerce and dropshipping. Resellers work in addition to finding consumers, they also need to package and deliver their own goods using trusted expeditions until they reach the buyer (if the reseller stocks the goods).
While the dropshipper system works only on marketing and offering products to customers. Dropshippers don’t have to bother with packing goods, shipping goods, and all things physically related to products.
Dropshippers only need to send order details to the supplier and then the supplier sends the product directly to the consumer.
What is Dropshipping System?
After knowing the difference between a reseller on eCommerce and a dropshipping, it is now important to discuss the dropship system. The dropship system is basically more consumer-oriented or customer-oriented.
Well, to understand it, you need to pay attention to the flow of the dropship business activity itself because the way dropship works will refer to that flow.
The flow is a dropshipper who gets an order for goods from a consumer through an online store waiting for the consumer to complete the order until the process of giving the address and paying for the product.
After the consumer completes the payment, the dropshipper will contact the supplier to provide the ordered goods or products. After that, the supplier or goods provider will prepare the ordered goods as well as carry out packing or packaging.
The supplier will also take care of the delivery of goods to the consumer’s address through his own expedition or an outside expedition that is trusted so that the goods reach the consumer’s address.
Later, the dropshipper will get a commission directly from the supplier, the amount depends on the agreement. The system is very easy and practical, yes! Therefore, the dropship business is loved by many people in the current digital era.
Next, so that you can run the dropship system smoothly, do some dropshipper strategies.
These strategies include choosing the right product and product business partner or supplier, creative online business branding, and mastering digital devices so that you can get up-to-date notifications from purchases.
What is E-Commerce System?
So what is a reseller system and how does it work? Reseller work system can be classified into several models. This division is used to be more efficient in carrying out its role in online business. Here are the models in the reseller system.
First, is the profit sharing model. In the profit-sharing model, as a reseller, you and the supplier will get a fifty-fifty profit, or each will get 50% of the profit from product sales.
This system can also basically be done by a dropshipper, it’s just that the difference is in the system of providing goods or stock. The second model is the guarantee model. In this second reseller model, the supplier will withdraw some money from the reseller which serves as collateral.
This means, the supplier is minimizing the possible losses that may be obtained if the reseller is not trustworthy or irresponsible. If at any time the reseller violates the mutual agreement, the security deposit will not be returned.
This model is widely used, especially if the reseller is considered untrustworthy for the supplier. The third model is the replica web model. This replica web model makes resellers entitled to a kind of web replica for sales promotion from the supplier.
The web system will monitor if the reseller succeeds in making a sale which will later be exchanged for a commission. With this system, resellers are asked to create an account on the supplier’s official website or they can also be asked to download certain applications.
The next model is the web alone model. This model, as the name implies, means that resellers are given the freedom to manage their own website for selling them.
However, this website is still under the control of the supplier, because later the supplier will give a lot of discounts to resellers who manage to achieve certain sales targets. Lastly, is the buying and selling model. In this model, a reseller is required to first buy goods at a certain price.
After that the supplier will provide various benefits and sales facilities including membership. The advantage of this model is that resellers can freely sell their products with various facilities that have been obtained.
In addition, resellers also have the opportunity to get various bonuses and discounts. Very interesting, yes!
Advantages of Being a Reseller on eCommerce
Do you know what a reseller is? After knowing The Difference Between eCommerce and Dropshipping, next we will discuss the advantages of being a reseller.
It is undeniable that there are many advantages to being a reseller that you are very sorry to miss. For that, let’s look at some of the profit points that you can get if you become a reseller below.
1. No need to leave the house, just use the internet
The first advantage of being a reseller is the flexibility you can feel, namely the time and place of work.
To be able to become a reseller, you don’t need to leave the house because all work can be done only with a mobile phone and internet network. Make sure that your internet network is adequate and that internet quota is available, OK!
2. The required capital tends to be small
The next advantage is that the capital required tends to be small. Generally, resellers will be given special prices or discounts so that they are cheaper.
Especially if you buy goods in large quantities, the discount given is also getting bigger. You can even become a reseller without any capital if you don’t stock up on goods.
3. Able to Determine Competitive Prices
The next advantage is the opportunity to determine competitive prices more freely. As a party who resells goods from suppliers, you can set your own prices by looking at market competitors around you. The selling price of goods and products is also more competitive and can attract more buyers.
4. Flexible Stock and Sales Arrangement
If you have understood the meaning of eCommerce and dropshipping agents correctly and can tell the difference, then you will find it easy for you to manage stock and sales to be more flexible.
Because you can feel this advantage if you become a reseller who really understands the knowledge well.
5. Products sold are varied
Another advantage is that you can sell a variety of products at once provided you have enough free time to list all the products and manage your finances.
You can work with many suppliers at once so that the products sold are varied. Currently selling a variety of products is possible with the ease of technology and internet network.
6. Potentially Earn Additional Commission
If you become a reseller and get a good business partner as a supplier, then it is not impossible that you will potentially get a lot of additional commissions from sales. It should be noted that this commission takes various forms. Some are in the form of cash, or also valuables. Very interesting, yes!
7. Promotions can be adjusted to be more effective
The next advantage is in terms of promotion. By becoming a reseller you can gain experience to develop your own promotional strategy with the ideas and creativity you have. Of course, with a fun promotion, sales will be effective, right?
8. Sales System Can Be Combined
As previously mentioned, there are several models of reseller sales systems that you can do. When you become a reseller, you can combine various sales systems with a record of getting approval from the supplier.
Advantages of Being a Dropshipper
After knowing the advantages of being a reseller eCommerce, it is also important for you to know the advantages of being a dropshipper in dropshipping.
Because there are differences between resellers, dropships, and affiliates (marketing with commissions), the profits will also be different. Well, here are some advantages if you are in the dropshipper business:
1. Don’t Need A Lot Of Capital
You can start a dropshipping business with any capital. Because you don’t have to stock up on stuff. With only internet and cellphone quota, you can sell. But if you want your sales to be more massive, you can pay a small fee to pay for advertising on the internet.
2. Location and Working Hours As a Flexible Dropship
The next advantage of the dropshipping business is its very flexible location and working hours. You can work anywhere at any time you want.
The difference between reseller and dropship with other office work is what makes many people interested in starting an online business, especially during the pandemic.
3. Easy and Efficient Sales System
The dropship sales system is also very easy and efficient because everything can be done using mobile phones and the internet.
Again, the difference between reseller and dropship with other common jobs is what makes many people want to start this business. Because without having a certain degree or skill, everyone can learn this easy dropshipping system.
4. Various Products Sold
Dropshippers can sell many items with various variations at once. You can collaborate with many suppliers so that your products are also diverse. Again, you can sell these diverse products without capital.
5. Able to Reduce Overhead Costs
In running a business, there will be many challenges and unexpected things that often require unexpected costs. Well, these costs are called overhead costs.
By working as a dropshipper, you will be able to reduce overhead costs, because the dropship system is very minimal risk, no need to stock up on goods, and no need to go out of the house to work.
6. More Energy Saving when Becoming a Dropship
The advantage of being the next dropshipper is that it is more energy efficient. This job is perfect for those of you who don’t like to work hard. Dropshippers only do work in front of a cellphone or laptop screen without the need to leave the house.
7. The Profits Are Tempting
Finally, you need to know that the benefits of being a dropshipper are very tempting.
In addition to profiting from sales of products purchased by consumers, you also have the potential to get additional bonuses from suppliers when you get consumers with a large number of product purchases.
With little capital, a flexible work system, and not spending a lot of energy, you have the opportunity to get all the benefits above.
So, now you know What Is The Difference Between Ecommerce and Dropshipping and how they work? Then you can choose which work system is most suitable for you. Also think about the potential benefits and abilities of yourself in running the business.
You can do some research first before actually getting into it. Come on, visit Dogzily Blog for more quality financial content!