The presence of the internet today makes it easier for various activities. One of them is buying and selling activities that are currently mostly done online. Before deciding on an online business, first know the difference between a reseller and a dropshipper.
These two terms for some people must be very familiar to the ears because they are often used in buying and selling online. Unfortunately this is not the case for others, especially for those who are just starting to get to know the online buying and selling business.
The Difference Between Reseller and Dropshipper
Before starting an online buying and selling business, it’s a good idea to first identify the differences between a reseller and a dropshipper. Although these two terms are closely related to online buying and selling activities, they actually have different meanings.
To make it easier to know the difference between these two terms, you should understand what the two terms mean. Then what is meant by reseller and dropshipper?
Reseller is the activity of buying a product or goods at a certain price then the goods are resold at a higher price. Thus, this price difference is an advantage for the reseller.
While what is meant by dropshipper is a third party that cooperates with producers to market products or goods produced.
When this dropshipper gets an order or order, it will forward it to the producer or product owner. Then the owner of this item or product will prepare the order for delivery to the customer.
Here’s the Difference Between Reseller and Dropshipper That You Know Before Starting Selling.
Actually, between resellers and dropshippers, they are both types of work that are not bound. Therefore, both reseller and dropshipper can be done as a side job to increase income.
Also read: Examples of Promotional Words Collections
So that anyone can join as a reseller or dropshipper in an easy way, the important thing is to have determination and will. For those who are interested in pursuing this profession, it is necessary to know the difference between a reseller and a dropshipper.
1. Have a Different Working System
The first difference between resellers and dropshippers is in the working system. Resellers have a work system that is almost the same as offline merchants. Therefore resellers must provide stock before selling goods to consumers.
Then how does dropshipping work? The dropshipper’s work system is different. with resellers because they focus more on product marketing. So if there is a product order, the dropshipper must process everything himself.
2. Type of Service Used
The second difference between resellers and dropshippers is in terms of the type of service used to serve customers. Resellers provide direct services to consumers from packaging to the delivery of goods.
Meanwhile, dropshippers use this type of service to consumers indirectly. The dropshipper will only forward this order to the distributor. Then it is this distributor who provides direct service to consumers.
3. Marketing Strategies and Methods
The third difference between resellers and dropshippers is in the strategies and marketing methods used. Usually, resellers do marketing directly to consumers by offering the products they sell.
Meanwhile, dropshipper’s marketing strategies and methods usually use social media. These include Facebook, Instagram, Twitter, WhatsApp and others.
4. Stock Availability
Furthermore, the difference between a reseller and a dropshipper lies in the stock of goods. For resellers, the stock of goods to be sold is mandatory. Usually direct resellers will get direct stock of goods at competitive prices.
As for dropshippers, the availability of stock is not necessary because the dropshipper only focuses on marketing products or goods. For other processes will be forwarded to the distributor.
5. Amount of Capital Used
The difference between resellers and the next dropshipper lies in the amount of capital used. For resellers, the capital used must be greater than the dropshipper because the reseller must provide stock of goods to be sold.
While dropshippers usually only use relatively small capital, such as for purchasing quotas or credit. Becoming a dropshipper can also not need to spend capital. This is because dropshipping only markets its products.
6. The amount of profit received
The next difference between resellers and dropshippers is in the amount of profit they receive. Usually, resellers will get a bigger profit because they have stock of goods at lower prices.
While the profits received by dropshippers are usually smaller because the focus is on marketing, not sales. Thus, if there are questions, it’s better to be a reseller or dropshipper, of course, they will choose a reseller.
7. Possible Risks that Must Be Accompanied
The difference between resellers and other dropshippers lies in the amount of risk that must be borne. The difference in terms of risk is that resellers are likely to experience greater risk because there is stock of goods.
Meanwhile, dropshipper in terms of risk is actually safer because it does not provide stock of goods. So the possibility of risk that must be borne is also much smaller than the reseller.
Choose Reseller or Dropshipper?
Some of the differences that have been described above can be the basis for making choices, which way of buying and selling online to use. As a reseller or dropshipper. The choice depends on the wishes of each.
Although there are some differences between resellers and dropshippers, the most basic difference between the two is the issue of stock availability.
In addition to stock availability, don’t forget the work system used is also very influential which needs to be taken into consideration. Because this will determine the amount of profit obtained.
What are the advantages and disadvantages of resellers and dropshippers?
To determine the type of choice for this online buying and selling business, in addition to paying attention to some differences, you should also consider the advantages and disadvantages. What are the advantages and disadvantages of these two methods?
1. Advantages and Disadvantages of Resellers
There are several advantages and disadvantages of buying and selling online business by choosing to become a reseller. What are the advantages and disadvantages? Here is some information and an explanation about the advantages of resellers.
- Has a stock of goods to facilitate the availability of goods to be sold
- Knowing in detail about product information or goods to be sold
- Sales system can be done directly and indirectly
Apart from having the advantages of being a reseller, of course it also has some disadvantages. What are the shortcomings of this reseller, let’s look at the information and explanation.
- Must have a large capital
- It’s more complicated because you have to do the shipping process yourself
- Possible risk is greater
2. Advantages and Disadvantages of Dropshipping
There are several advantages and disadvantages of online business by choosing to become a dropshipper. What are the advantages and disadvantages, let’s look at the following reviews about the advantages.
- Capital does not have to be large, even without capital
- No hassle
- Possible risk is very small
In addition to some of these advantages, there are also disadvantages of an online buying and selling business by becoming a dropshipper. Here are some of the drawbacks, let’s look at the information.
- The profit is small
- Incomplete item information
- Focus only on marketing the product
Use iREAP POS to Manage Business!
Thus the difference between reseller and dropshipper that must be known as a consideration before deciding on an online buying and selling business. To consult about business please visit our main page.
And don’t forget to always use the iREAP POS application to manage your reseller and dropshipper business. So, you no longer bother managing your business finances.
Hope it is useful!