What is the Difference Between a Dropshipping Store and a Dropshipping Company?
Indeed, what is the difference between a dropshipping company and a store? As soon as you ask that question, it immediately becomes apparent that there is a difference, and here is what it is: a dropshipping store is a retailer, an online retail store pitching their products to consumers. Of course, they neither manufacture nor warehouse those products, and that is where dropshipping companies enter the picture. These companies may or may not manufacture goods, but they will be looking to amass warehoused stock and looking to the dropshipping retail store fraternity to buy their goods.
The difference can be depicted as that between wholesale and retail, like a farmer who grows thousands of cabbages and distributes them between Pick n Pay, Checkers, and Spar. Those three retail grocery stores are the equivalent of a dropshipping store. The farmer is the dropshipping company. While both strata in the shipping model have their pros and cons, one is far more complex and challenging than the other – the dropshipping company. Moreover, these companies cannot deal in cabbages only, metaphorically speaking. As a company, you are expected to be all things to all people, and that means a diverse and substantial stock holding that is also vetted against the essential metrics of online sales.
First and foremost of those metrics is quick-moving. No one is going to make any money when stock sits on the shelves, and so it is incumbent upon dropshipping companies to do extensive market research to see what is selling, and why. Secondly, a company needs to price its goods just right, in order to fit in between diverse manufacturers and the retail dropshipping stores. Price too high? No sales. Price too low? No profit, no sustainability.
Although the same can be said on the last point about any business, online or not, dropshipping companies really have to get their sums right, in order to successfully supply stores and still make enough money to stay in business. What this phenomenon has exposed is that you cannot do both. Researching, liaising, and actually securing good quality bulk stock for resale takes all of your time.
A Gold Mine for Stores
Finding a great local dropshipping company as a dropshipper is like discovering a gold mine. All the hazards of sourcing are eliminated for the dropshipper, and that includes proper scoring of marketplace reception for goods, dealing with the potential for exorbitant shipping costs, monitoring the quality of diverse products, often from diverse manufacturers, and ensuring the consistency of supply. Seen from that point of view, a good company can become fairy godmother for dropshippers, it is true!
These companies have made their decision and occupied their niche. They do not sell to the public as their core business – that is your gig. They sell to you, and the best will have low minimum orders, very reasonable pricing that allows you to mark up fairly to retail prices, and they will exude a commitment to being around with the same or better goods whenever you knock on their door. They have made a meal out of all of the grisly bits of doing dropshipping alone, and packaged just what you need – quality goods – to stock your shelves and make consistent sales.
Ecomstock Takes the Sting Out of Shipping
When you contact Ecomstock as a South African dropshipper, you will find a large range of categorised goods, all quality, all priced wholesale, and all ready to be shipped at a moment’s notice. Your business success is our business, and we are a legitimately geared company that you can trust.
We are neighbours, we are wholesalers, and we like great gear, just like you. If that sounds good, let us show you that it is actually great! Call us or mail us, or simply shop online – we are here to serve you and make your store a resounding success.