Ways of selling your products Flashcards
Dropshipping
dropshipping is the process of shipping eCommerce orders directly to your customers from a third-party supplier without a step in between like having them in your store or warehouse. Normally most businesses store products until a customer orders them and then package them and ship them to the customer. With dropshipping, when the customer orders a product, you pass the order information to a dropshipper who packages the goods and ships them directly to the customer. The dropshipper charges you a price for the product sold, usually wholesale plus a delivery fee. Dropshipping is very common for small eCommerce businesses just starting out. Why is this? Storage, packing, picking and delivery is very labour intensive and costly.
White label
an eCommerce store works with a manufacturer to create a product with their brand or logo on it. Other brands can sell similar products, but this one has your name on it. With private labelling, the product is exclusive to your eCommerce store.
Arbitrage
buying products that are reduced or on clearance elsewhere and selling them for a higher price on a different eCommerce channel. There is even an eCommerce model where an eCommerce seller lists products on Amazon, and then when it sells, buys the same product cheaper from another seller on eBay for a cheaper cost and then ships it to the customer on Amazon. Not for the faint-hearted!
Craftsman’ or ‘handmade’ eCommerce
This is where you make your own products such as jewellery, furniture, candles or clothing. You - as the owner and maker - are directly involved in the design and manufacturing of these products as well as selling directly online. Besides selling direct on their own eCommerce store, these sorts of products also work very well on marketplaces such as Etsy.
Subscription box eCommerce
An eCommerce store that sources different products in bulk and repackages them as a box of goods - and charges a subscription for them.
