Dropshipping brings together three players: the customer, the reseller, and the dealer (ตัวแทนจำหน่าย which is the term in Thai) (wholesale). The customer, when he wishes to buy a product, goes to an e-commerce site or an online store.
With dropshipping, the reseller can offer him products that he does not have in stock. This is the big advantage of drop shipping; working without stock does not involve the mobilization of goods or heavy logistics management.
Finding The Right Supplier Is Essential
The reseller must be convincing enough to establish a contract with the various dropship agent (ตัวแทน Dropship which is the term in Thai). It is important to choose products that are not very present on other websites to limit competition and present a real advantage for the supplier.
He must honor the sale since the contract was concluded between a customer internet user and the reseller. For the buyer, the supplier does not exist. The relationship of trust with the supplier is, therefore, essential.
Large e-commerce sites have been using dropshipping for many years. This is the case of Amazon, eBay, and many others. These sites have contracts with brands, companies, manufacturers to sell their products on their websites. In return, they receive a commission on sales.
The Advantages Of Dropshipping
Dropshipping allows you to get started in e-commerce without having significant funds. The key is to find a trusted supplier. This technique makes it possible to increase its turnover via online sales. It avoids the management of stock. It is not necessary to have many products or to have to store them.
It is a solution if you want to market new products for your business but without mobilizing stock and first by testing their popularity. If you already have a successful e-commerce site but have a limited range of products, dropshipping may be the solution. You can also start an e-commerce site based solely on dropshipping by selecting one or more suppliers around a range of specific products.
The reseller does not support stocks or logistics, which is a real work in itself, but it is entirely dependent on its supplier (s). Since he has no stock, he must rely on the wholesaler’s strategy. This dependence is also present at the level of the price set by the supplier.