5 Difference between Reseller and Dropshipper You Need to Know
As online shopping trends continue to develop, more and more business opportunities can be exploited, for example selling online with a reseller and dropship system. Both of these business systems do not require large capital and are relatively easy to be done by anyone.
Although it looks similar, but both have quite contrasting differences. Here are the 5 differences between resellers and drop shippers that you need to know about.
1. Different Ways of Work
The first thing that distinguishes between a reseller and a drop shipper is of course how it works. Resellers can be said to be almost the same as conventional traders, which requires you to stock an item first before selling it to consumers. Resellers usually obtain goods from a supplier or distributor.
While the drop shipper, more emphasis on the marketing process. After a successful marketing process, you will usually receive orders as well as payments from consumers. After that, the order must be forwarded to the supplier. After the supplier receives the order, they will send the item to the customer’s address using the name of your store.
2. Issued Capital
Judging from the way they work above, of course, the capital needed is also different. Resellers need greater capital because they must have a stock first. While the drop shipper can be said to have almost no need to pay for anything other than marketing activities. Even with the dropship system you can receive payments and take advantage in advance.
3. Benefits obtained
Talking about profits, of course, many factors influence. However, if we depart with the assumption that both of them conduct transactions in the same amount, then the reseller is more profitable. Why?
Resellers usually buy stock in an amount not small, so the purchase price obtained will also be cheaper than the purchase price of the unit. Whereas the drop shipper only purchases goods after there is an order from the consumer. In other words, the purchase price obtained from the supplier is the unit purchase price. If both of them sell at the same price. Resellers are more profitable.
4. Assured Risk
Every business model, whatever its form, has risks, including resellers and drop shippers. The risk of a drop shipper does tend to be smaller than that of a reseller. One of the most common risks from a dropshipper is that no customer is interested in the product you offer. In other words, the costs you have spent on advertising or marketing do not get any results.
Resellers also have almost the same risk, but at a relatively greater level, because in addition to marketing costs, a reseller also incurred costs to buy product stock. Thus, if the product is not sold in the market, the loss will be greater than the drop shipper.
5. Services to Consumers
The last thing that distinguishes the two is how to provide services to consumers. After receiving an order, the reseller needs to pack and deliver the goods themselves. Whereas the drop shipper only forwards orders from consumers to suppliers. The supplier will then send the order to the customer’s address.
Dropshipper only acts as an intermediary, i.e. accepting customer orders and forwarding them to suppliers without the need to bother thinking about the packaging and shipping process.
Thus the discussion about the 5 differences between resellers and drop shipper you need to know. And don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target the marketing target you want and gives you many choices for marketing your product.