Chapter 2 – Dropshipping Supply Chain Process


Dropshipping is actually a supply chain model and understanding this is close to understanding the dropshipping process.

Supply chain is a process that starts with manufacturing and ends at delivering to the target audience. To understand this in the context of dropshipping there are four major parties that work as the foundation of dropshipping supply chain.

Manufacturer – The one who manufactures the product
Wholesaler – The one who sells to the retailer
Retailer – The one who sells to the consumer
Fulfillment – The one who delivers the product to the consumer

Before understanding these foundation let me remind you dropshipping one more time. As a dropshipper, you do not manufacture, retail or fulfill the order. You just connect the dots to provide the product to the end consumer.

A basic supply chain model works in this way

Manufactures —>  Wholesaler  —>  Retailer—>   Buyer

In dropshipping supply model, there is a couple of additional channels

Manufactures —>  Wholesaler  —>  Retailer —>   Dropshippers —>   Buyer

This means that as a dropshipper, either you get the suppliers in the form of the manufacturer, retailer or wholesaler, who would deliver the product directly to your customer or in other words they would provide fulfillment services for you.

Here is the illustration of how dropshipping supply chain works.

dropshipping-supply-chain-process

 

In other cases; you get the product and deliver it via fulfillment service or you tell the supplier to ship the products to fulfillment center.

 

dropshipping-supply-chain-process-2

Manufactures  —>  Wholesaler —>  Retailer  —>  Dropshippers —>  Fulfillment Service  —>  Buyer.

I hope the dropshipping supply process must be clear now 🙂

Bilal Uddin

Bilal is a passionate content creator and digital marketing enthusiast who loves to find hacks and synergize to produce prolific outcomes in strategizing content. Bilal is also an avid reader who has a firm believes in this quote; “If A is a success, then A = X+Y+Z. Where X is Work; Y is Play; and Z is keeping your mouth shut."

Comments are closed.