Dropshipping agents and third-party fulfillment are often confusing. Undoubtedly, both will help you deliver your order, but which one to choose? Know yourself after going through this blog:
What is Dropshipping?
Dropshipping is a business model for online sellers to sell products without maintaining inventory. They purchase the needed inventory from third-party suppliers, and the suppliers deliver the products directly to the customers. Perks of Dropshipping
Here are good reasons to choose to dropship:
● Eliminates Inventory Management
Everyone knows inventory managemnt is how cumbersome task, but the dropshipping model eradicates it. The prominent advantage of dropshipping is that seller does not need to maintain stock. Neither is there any hassle of arranging storage space nor staff to keep records.
● Minimal Cost for Startup
Startups usually have stringent budgets, so dropshipping becomes a nice escape because it does not require startups to buy products until customers pay for them. Furthermore, it gives the advantage of low overheads as no inventory or warehouse management is involved.
● Experiment with Variety
Online sellers can deal with various products to know which one best suits them for growing their business. This is only possible because there is no inventory to sell before switching to a different one.
Disadvantages of Dropshipping
Why most businesses face trouble in growing business with dropshipping-
● Unsatisfactory Customer Service:
When customers get damaged or incorrect products, it becomes hard to answer them. Even worse, tackling their infuriation becomes nearly impossible when their parcel goes missing. The real problem is not combating the customer problems but their reviews that impact the reputation of the whole business.
● Ban on Account
If there are huge customer complaints or hostile remarks, then eCommerce and Ad platforms may ban dropshipping accounts as it negatively impacts online selling.
● Limited Branding Opportunity
Since the product is designed and supplied by a supplier, it looks similar to other competitors. Creating distinction is only possible with robust branding, which is not adequately available.
● Dependent on Supplier
Online sellers have no control over the whole process; they can just hope that everything goes smoothly. Suppliers have all the stock, and any mistake from their end can severely hurt the goodwill of online sellers.
● Challenges in Shipping
When working with multiple suppliers, shipping often turns complex as the online seller will incur separate shipping costs for sending each product.
Third-Party Fulfillment – To Eliminate Issues in Simple Dropshipping
The most significant difference between dropshipping and third-party fulfillment services is that in the latter one, you need to buy only a few stocks and store them in a third-party dropshipping fulfillment warehouse.
Features of Third-party Fulfillment Service
● Entirely in control of the online seller
● Facilitates improving customer satisfaction rates
● Offers flexibility in shipping solutions
● Give a chance for proper branding
Perks of Choosing Third-Party Fulfillment
Here are the advantages of choosing a third-party fulfillment service over simple dropshipping:
● Increased customer Satisfaction
Customers get faster and more reliable delivery, boosting their satisfaction and loyalty. Ultimately it leads to repeat business and speedy growth in the future.
● Proper Packaging and Branding
Online sellers get a chance to do proper packaging and branding that helps in establishing a distinct identity. It assists in beating down competitors and standing apart in the market.
● Complete Control
Third-party fulfillment service allows complete control over the whole process. The online seller can fulfill the order satisfactorily and deliver quality customer service.
To scale your business, don’t go with simple dropshipping. Choose Alleasy, the most renowned name among e-commerce fulfillment companies. With our reliable services, you can enhance your customers’ satisfaction and watch them become regular customers.