What is Dropshipping

Dropshipping is an order fulfillment model where sellers receive orders from buyers and have third-party suppliers fulfill those orders. This way, sellers don’t need to store, handle, or ship any products, and earn the difference between wholesale and retail prices.

Shipping Process

1. The customer places an order and pays, and both the seller and the buyer receive order confirmation information;

2. The seller sends the order information to the supplier, who will charge the wholesale price for the product;

3. The supplier (or consignor) processes the order and sends the goods to the customer;

4. The drop shipper will provide the seller with an invoice and tracking number, and the seller will forward it to the customer.

Return Process

1. The customer contacts the seller and requests a return;

2. The seller asks the supplier to provide an RMA (return material authorization) code;

3. The customer returns the product to the supplier, and the address bar is marked with the RMA code;

4. The retailer returns the payment for the wholesale products to the seller;

5. The seller gives the customer a full refund.

advantage

1. The required funds and costs are relatively small;

2. Rapid scalability and more product options;

3. Save time and not be restricted by geographical location;

4. Increase repurchase rate.

defect

1. The accuracy of the delivery date cannot be guaranteed;

2. Small profit margins;

3. Failure to ensure product quality;

4. Need to deal with subsequent after-sales issues;

5. Logistics and transportation are more complicated;

6. The seller may suffer damage to the company’s reputation due to the supplier’s mistakes.

New Model

Jiemai is a new e-commerce model derived from drop shipping. It means that retailers use pictures, descriptions and other information to achieve zero-purchase sales, and suppliers use channels to achieve small-order sales. This model was first created by Jiemai.com.

Jiemai.com is an online trading platform that gathers products from Chinese suppliers, providing online sellers with one-stop e-commerce solutions from product procurement, product quality inspection, supplier management, inventory management, warehouse management, order processing, sales channel management to global logistics and distribution. At the same time, based on the massive global online retailer resources, Jiemai.com provides Chinese manufacturers with one-stop e-commerce distribution channel services from warehouse management, inventory management to order distribution.