I titled this post Vendor to Vendor shopping because of the variety of vendors involved. It’s not an e-commerce platform for multiple vendors (although related). Vendor to Vendor shopping is a sales platform whereby you assist different vendors in selling their products on your e-commerce store without you physically owning or having the product.
Easy as it sounds, let’s dive in.
How does this happen?
- An e-commerce shop owner goes to the vendors and gets the images of their product (with or without the consent of the vendor).
- He/She uploads these images into their store and attach a price tag to them (with their own profit included). For example, if the vendor sells the product for $20, he/she could sell it for $25 or $30 and make a $5 or $10 profit.
- Share/advertise it on social media such as Facebook, Instagram and Twitter for people to see.
Yes, you don’t need to own this product, you just act as a middle man between the vendors and their end-users.
How does one make sales?
- A customer makes an order and pays.
- You use the money from the order to make a purchase of the product from the vendors.
- Send the shipping address of the customer to your vendors for them to make the delivery to them.
- Change order status on your store and then notify the customers so that they’ll be ready to receive the product when it arrives.
- Keep track of the products being shipped to make sure it reaches your customers.
- When the customer gets the order, you mark order status as delivered on your store.
Now, your VENDOR is happy for making sales. Your CUSTOMER is also happy and satisfied in receiving his/her product. While you the STORE OWNER is of course, happy, for you’ve made your own profit too.
You don’t have the product, but you have the money in an EASY * CHEAP and CONVENIENT way.
PROS AND CONS
Here are some things that will help you to make your decision whether to make use of Vendor to Vendor shopping or not.
- Easy to build and set up an e-commerce store
- Easy to manage store
- No physical product needed (even if you sell physical products)
- You handle less risk
- You handle a great variety and range of products (you can’t sell as much product as you want since you don’t have them)
- You make your profit on a daily basis
- Little or no control of inventory i.e customers product may be out of stock by the time they make payment for the order.
- Consistent tracking of order to make sure it gets to the customer.
- Little or no quality assurance.
- Vendors may not respond on time when the customer makes the order.
Conclusion / verdict
Vendor to Vendor shopping is a must-have for new business starters but it should not be seen as a long-term solution. This is because the system may get overwhelmed in the long run, thereby not satisfying your customers the way you would want to. Though it has its cons, it’s pros are also something to consider. Get products from the vendors you trust, not just any kind of vendor and most of these cons can be avoided.
Thanks for reading!