Dropship is a business model where a seller does not stock the products in its store. So, when an order gets placed from its online store, someone else ships the product to the customer.
In dropshipping, the customers purchase the products and makes the payment on the web store, but the order is fulfiled by another merchant, wholesaler or a supplier.
In the dropshipping method, the store owner will never handle the product on its own, only list the products on the webstore.
The store owner asks for the catalogue of products from the suppliers who are holding the inventory to update products accordingly on their website. The store owner has the products virtually but the physical products are stocked at the supplier’s warehouse only.
And, as any order gets placed, the store owner then purchases the product from that supplier and transfer them all the order, shipping details and have them ship the products directly to the customer.
If a customer places an order for a t-shirt, then storeowner after taking the profit margin from the transaction will transfer all the order, shipping details to the supplier who is holding inventory for the order placed & then supplier ships the order directly to the customer.
Opencart is a complete shopping cart platform, it is widely popular and used by thousands of merchants worldwide.
But before we proceed, we need to first convert the basic Opencart store into a multi-seller or multi-vendor marketplace. This requires Opencart Marketplace Extension.
Further, to have drop shipping feature, you need to use Opencart Dropshipping extension also.
All you just need to contact the supplier as soon as you receive the order and transfer the details to the supplier, who in turn will process the order and ship the order directly to the customer.
Now, as we know the growth of E-Commerce industry leads to the demand for faster delivery of services. And in order to meet the challenges store owner are looking to modify their supply chains.
The transformation seen in this industry is biggest if, we are talking about the warehouses or fulfilment centre. In order to full fill the maximum number of orders, investment is to be made in the warehouses.
That is more warehouses more numbers of products which in turn full fill more delivery of orders, like Amazon, Flipkart, Alibaba, is among the growing number of providers which are offering online marketplaces that have the capabilities to fulfil retailers orders.
FBA is among the best online marketplace fulfilment centre, in which seller can use the giant Amazon warehouse infrastructure, to store their inventory and utilize the best in service of packing and shipping the orders to the customers by providing them with the world-class expertise of Amazon and there trusted customer services.
In Amazon fulfilment centres sellers will stock their goods which will be taken care of by the Amazon and they will only pick, pack & deliver the orders directly to the customers. Which in turn help the sellers to manage their sales and eventually help them to increase their online e-commerce business further.
If you are looking to integrate your e-commerce website based on opencart with the Amazon store, then you can use our Opencart Amazon Connector extension which would help you to import/export products, orders, and customers from Amazon to opencart and vice-versa.
When you are doing drop shipping business, the customer places an order, you will transfer the order details to the supplier who will then process the order accordingly and ship the order from his warehouse directly. This method of running a business requires much less investment.
But if we are talking about fulfilment the order from Amazon, which in general involves sourcing products in bulk, and then usually spend resources to store them until a customer places an order which will increase the investment.
In Dropshipping business as there is no need to maintain the inventory for the products by the store owner as the order is shipped by the supplier directly from there own warehouses. So there is no need for the store owner to pay fees for storing the products.
But if we are talking regarding the Amazon fulfilment centres here the store owner who has stocked there products with Amazon need to pay fees for stocking their products in Amazon Warehouses.
Whether you are making the profit by your sales or not you have to pay money to store your products.
In Dropshipping business you can use your marketing strategies rather not to depend upon some else workflow. You can choose from multiple Suppliers instead of going with one, for different or same products.
And if we look into the case of FBA, Amazon solely manages its strategies, you depend upon there rules when it comes to marketing, storing & shipping of products.
But by using our Opencart Dropship Management Module, the store owner will be able to import products from Aliexpress to his own store online and can start selling those products within his own store very easily.
You can easily place orders for the products which have been imported from AliExpress, that get ordered at your webstore just by clicking a button at your Opencart store.
As a customer places an order the details are then shared with the nearest warehouse depending upon the customer location and from there the order gets directly shipped to the customer.
Dropship do not involve the store owner in delivering or shipping process the concern will be of only the suppliers.
You can easily add our Open cart Dropship Management module with your existing or New E-Commerce website and can manage multiple warehouses for products with specific quantities.
And along with this can add respective shipping details for different warehouses using CSV Files. The Shipping charges will be based on the distance between the warehouse and the customer location.
As if, you have integrated your E-Commerce website with our Opencart Dropship Management Module by this store owner can set the pricing rules for the store products as well for the products which are imported from the Aliexpress.
The store owner can charge commission on every order placed whether the product is existing or imported product from Aliexpress.
That’s all for this case study & I hope you all get the idea about how to start a Multi-Vendor Dropshipping business. You can use our Open cart Dropship Management module in order to easily manage your Multi-Vendor Dropshipping business.
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