Have you ever heard of Dropshipping, how it works and what are its advantages for your digital business?
In this article we will try to explain to you in a nutshell what is this new and powerful sales technique and why more users are interested in it every day to set up their own businesses on their websites and also how we get involved in it… for you.
What is Dropshipping?
Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.
As in retail business, the majority of retailers make their profit on the difference between the wholesale and retail price, but in this case the retailers earn an agreed percentage of the sales in commission and paid the difference automatically to the wholesaler when the final client makes the purchase.
How exactly does the dropshipping work?
If you currently own an eCommerce or you are thinking that you need one, by creating agreements and negotiations with owners and/or developers of digital products, you will be able to sell your digital products or services from your own web store.
Then, at the time that the end customer buys any of these products and/or services in your Web store, the owner and/or developer would also receive a notification, so that it is he who sent those customers such products.
What benefit does each party?
- The business for the retailer or reseller is that he can sell third party products and win a commission on the price of the original owner.
- The advantage for the dropshipper is that will be able to promote and sell more products on the Internet without having to worry about generating their own products and sending them because they will be responsability of the wholesale store.
EDD Dropshopping Server & EDD Dropshopping Client
A few months ago, starting from this idea we proposed, with our team, a development for Easy Digital downloads focused directly on the Dropshipping.
To get this to work we made two addons. These addons have been developed separately but work together as server and client, allowing users with the EDD Dropshipping server to use their site as a product server, and users who own the EDD Dropshipping client replicate the sale of these products to sell on their own websites in order to generate revenue through sales commissions.
Take a look at these new addons and all their features and benefits. We are sure you’ll like them.