Online buying and selling today has grown rapidly. The online sales system has also been divided into dropship and reseller. Actually, the difference between dropshipper and reseller is very clear, but in fact there are still many who don’t know.
Even though information about the differences between these two systems must be understood immediately, so that later it can be sorted out which one is better. So if you are going to start selling products, you can clearly classify which system to run.
For that reason, in this description, we will explain the differences between these two selling systems thoroughly. There are at least seven points of difference that will be used as a basis. To find out all the lists and explanations, see the following details:
1. Capital to be Expended
The first point of difference between dropshipper and reseller lies in the capital. So, there is already a very clear difference between these two systems in terms of the capital that must be spent.
Arguably, this difference is the most obvious. So if someone becomes a dropshipper, then there is no capital to spend. Be it for stocking goods, renting a place, or other capital needs.
So this system, will be suitable for beginners who are still struggling with capital. As for resellers, of course there must be capital spent. Later, this capital will be allocated for the process of stocking goods and other needs. The amount itself will be adjusted to the type of goods to be sold.
However, both dropship and reseller will both market products from suppliers. But because there are already clear differences, the selection process will be easier and the capital preparation will be more focused.
2. Stock Items
The second difference between dropship and reseller lies in the process of stocking goods. This is also related to the system that runs between these sales processes. In addition, this difference is also related to the capital points that have been described. If someone chooses to become a dropshipper, then there is no need to stock even one type of item.
The party that needs to stock goods is the supplier. Meanwhile, dropshippers only need to market their products. If there are buyers who are interested, then the dropshipper can directly inform the supplier. Later, the goods will be sent from the supplier directly.
So the process of stocking goods is not needed. Then for resellers, of course, it will use a different system. Suppliers must stock items for all types of products sold. If someone makes a purchase, then the item can be immediately handed over to the buyer.
3. Marketing Strategy
The marketing process required for these two types of sales will also be different. For dropship, the marketing process will be carried out entirely with an online system. So the dropshipper does not have to make direct offers. This is in line with the stock system that is not needed.
Because there are no goods available, the bidding process can be done online only. Thus the process can be considered very efficient. As for resellers, the marketing strategy will be much more complex. Usually it will be run with an online system and also directly or direct selling. This system is certainly inherent in the reseller model.
By utilizing this complex marketing strategy, the process of getting buyers will be easier. Moreover, there are already goods that can be handed over to the buyer, so this strategy can be implemented immediately.
4. Advantages
Another point of difference between dropship and reseller lies in the benefits. Dropship, which does not recognize stock items, will benefit from sales commissions. Every time someone buys an item, there will be a commission given. So the more items that are successfully sold by dropshippers, the more commissions will be given.
Each supplier, of course, will apply a different commission amount and not necessarily how many percent per item.
Then for resellers, the profit can be obtained from the difference between the supplier’s price and the price for the buyer. All resellers have certainly received special prices from suppliers, so they can be sold at different prices again. When compared, the benefits of dropship and reseller will be different.
The reseller system can provide greater profits. Therefore, it is not surprising that many choose the reseller system to start running.
5. Risk
Then from the aspect of risk, of course, there is also a very clear difference. When compared, resellers will be much more risky than dropshippers. This is because, resellers must always stock items that are not necessarily sold. If it is not sold and is not attractive in the market, then the one who will bear the risk is the reseller.
The goods certainly cannot be returned to the supplier, because the purchase and delivery of goods has been made. Meanwhile, the dropship system will not be too risky because there is no stock of goods that will not be sold.
But that does not mean that this dropship system is also free from risks that might occur and be felt. If the marketing process is not on target and does not use the right method, then the number of buyers of the goods will be small. If the buyers are few, then the profits earned will also not be much and this will be very risky.
6. How it works
The next difference between dropship and reseller is in the working system. Dropship will use the marketing system as its spearhead. The dropshipper, can directly market goods with photo capital and a clear structure of item descriptions. If there is a buyer, the order and payment process will be made to the dropship.
Meanwhile, the delivery process will be carried out by the supplier directly. So in this way of working, the dropship only works until payment. Then for resellers, the way it works is not much different from conventional trade.
Resellers will buy goods from suppliers as stock items. If there is already a stock of goods, then the new reseller can do marketing and sales to buyers. When there is a buyer, the payment process will be made to the reseller and the process of delivering the goods is also carried out by the reseller. Thus, it is certain that the reseller must complete the sales system to completion.
7. Service to Consumers
A dropshiper certainly cannot provide services independently to consumers. This is because the packaging process until the delivery is in the hands of the supplier. So dropshippers cannot check or improve their services. As for resellers, the service process can be done independently.
This allows resellers to customize the type of service and carry out the improvement process. So for this service aspect there is also a clear difference. That’s a complete explanation of the differences between dropship and reseller as a whole.
The seven points of difference must be well understood so as not to cause confusion. All points have been added with explanations so that they are easy to understand.
If you already understand the difference, then you can easily choose which system to run. Meanwhile, if you don’t understand the difference, then the process of running the system will be haphazard and undirected.
