Advisory Services
Audit
Consulting
ESG Advisory
RBI Registration
SEBI Registration
IRDA Registration
FEMA Advisory
Compliances
IBC Services
VCFO Services
Growing
Developing
ME-1
ME-2
EU-1
EU-2
SE
Others
Select Your Location
With the ongoing frenzy in e-commerce[1] marketplace, Dropshipping is an ultimate guide to merchants, traders & retailers who are willing to sell the goods worldwide & establish a brand for them. Read the full story on Drop Shipping In E-Commerce Market Place
Due to its low cost & simplistic approach to setting up a business model in the worldwide arena, it is highly being used by many budding merchants. It has revolutionized the traditional retails & wholesaler concept.
Table of Contents
It means you need to list items for e-commerce from a wholesale distributor based on the products they have in their warehouse. So in this case, if an order is placed with you, instead of getting that product from warehouse to your shelf, the wholesaler ships the shipment directly with your details on the package to the ultimate consumer.
Here, the wholesaler acts like your own warehouse. You have to partner or execute a Supplier’s Agreement with a Wholesaler & list the merchandise for sale. The customer is not aware of the fact that is being supplied from the wholesaler’s source.
E.g.: If you have purchased any product from e-commerce sites like Amazon, you don’t know but that particular product can be drop shipped as well. Many more drop-ship items can be even sold on shopping cart platforms for websites like Shopify, Big e-commerce, 3D Cart, Volusion, etc.
Many online merchants use a combination of both marketplaces sales & sales from their own e-commerce websites.
If you are setting up a Dropshipping business in the US then following things need to be kept in mind:
Order submission of any particular e-commerce sites can be done via any method suitable for the retailer i.e. Phone, Email, and Fax but needless to say, a proper record should be generated and sent forthwith with the same. XML Feeds or CSV File process can also be executed for bulk orders.
After you put forth the order, the order has been registered. Now the Supplier will ship the product before the cutoff date. The order is confirmed along with a delivery slip which shows Tracking Code for that particular consignment.
Also, Read How to Start e-Commerce Business in India.
The customers have to be charged shipping from e-commerce which will bear the cost of Suppliers. The payment can be arranged through Credit/Debit VISA or MasterCard.
However, shipping drop ship consignments internationally can get expensive & complex due to a multiplicity of documentation, factoring, customs & duties involved. It is highly recommended in such cases to find a supplier in that particular country & focus on sales to customers directly over there.
Also, a well-drafted return & payment policies should also be mentioned on the website of the retailer which should coherently match with the supplier’s policies.
In 2009, it was stated that 31% of Amazon’s sales came from marketplace sellers – which is basically a large drop-ship operation. However, most major retailers also “blind drop ship” orders, so no trace of the seller/manufacturers is shown.
Henceforth this particular concept has been gaining momentum, largely due to upscale digital marketing & global synergy.
Also, Read License Required for Starting an E-Commerce Business.
Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
Are you human?: 9 + 2 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Non-Banking Financial Companies or NBFC plays a vital role in India’s financial system. However, the Government h...
04 Feb, 2020
A bond is an instrument via which the investors lend money to an entity (corporate or government) and earn income f...
19 Mar, 2019
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!