The mechanism of dropshipping
You might have heard about the term dropshipping. It is a method whereby a vendor acts as an intermediary between the customer and the supplier in business operation and it’s broadly used on online platforms like Shopify. The vendor or drop shipper does not store nor produce any product. Goods are manufactured and shipped by the supplier directly to the customer.
Primarily if your own a business, in the form of an e-commerce shop or a local store, where punctuality and the quality of your deliveries are essential, ordering your goods through a drop shipper can bring a certain amount of risks with it.
Let’s take a closer look to first understand how dropshipping works and where problems might occur.
The Dropshipper as a middle man!
The dropshipper acts as a messenger where he forwards the requirements of the customers’ purchase directly to the supplier, which is often, automized and without any real human interaction. He or She then is dependent on the response of the supplier. This means only the supplier decides with which priority and timeline the products are manufactured.
Limitations in daily execution
In modern globalized markets, language barriers and cultural differences can play a significant role in response time. Often enough dropshipping vendors have only limited experience with the supplier market. A small problem can lead quickly to a chain of misunderstood conversations and result in immense delivery delays.
Limited Communication and Access
Another important aspect might be that the merchant or a dropshipping vendor himself does not have any direct access to the production process and only very little chance to check samples during production. This adds a certain degree of insecurity. Often the single pre-purchased product sample is flawless, but commodities of actual productions exhibit failure rates of over 30%. Reflecting on the often high losses that come with it, receiving flawed products can be a real downside.
How to avoid difficulties?
No matter if you are just starting your reseller career or if you have been a long time in the business, we can not stress more out to do thorough research beforehand. Take a very close look at the purchasing- and delivery conditions your wholesaler offers you. Knowing the framework right from the beginning is essential, especially in tense situations like warranty claims or delayed delivery dates.
Making good choices
Try to not rely just on the low-priced offers. Dropshipping products are often rather low priced. This comes with the model of dropshipping. At the very first moment, it might look more profitable for you. Considering the before mentioned difficulties, in fact, it often turns out quite the opposite. This happens because delivery delays and quality control issues might force you to lower your price as well. This makes your planning unpredictable and minimizes your final profit margin.
Choose established Wholesalers
Try to abvoid dropshipping vendors with insuficient experince or conditions. Look for established wholesalers and global sourcing companies like Anchorbird S.A.S. They often offer products from handpicked suppliers with whom they have been working together for several years. This enables them to have a direct influence on production cycles and the ability to check on samples during the manufacturing process.
On the safe side!
Anchorbird S.A.S. goes even a step beyond and has employees on location, which makes communication and quality control even more reliable and streamlined. Furthermore, the shipment of your goods is directly executed and supervised by Anchorbird S.A.S. itself, which enables the avoidance of delays or any kind of problematic situation during this process. Lastly, we fluently speak the languages of both the supplier and the customer, allowing us to avoid miscommunications and offer you the most accurate answers possible.
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