Difference Between Reseller and Dropshipper: Which One is Right for You?

Running a business without having a physical store is now not impossible. Two business models that are in high demand are resellers and dropshippers. Both offer convenience for anyone who wants to start a business from home. However, although they sound similar, there are actually quite fundamental differences between resellers and dropshippers.

Understanding these differences is very important so that you can determine which one best suits your business conditions and goals. This article will discuss the definition of each model as well as the differences between resellers and dropshippers in terms of stock, capital, and product delivery systems.

What is a Reseller?

A reseller is a person or business actor who buys products from suppliers or manufacturers at wholesale prices, then resells the products to end consumers at retail prices.

Resellers usually keep their own stock of goods, carry out quality checks, and take care of the packaging and shipping process.

This business model is suitable for those of you who have initial capital, storage space, and time to manage stock. The advantage is that resellers can better control product quality and speed up delivery to consumers because the goods are already available.

What is a Dropshipper?

Dropshippers are business people who sell products owned by suppliers without needing to keep stock.

When there is an order from a consumer, the dropshipper only forwards the order information to the supplier. Then, the supplier will pack and ship the product directly to the consumer's address on behalf of the dropshipper.

This model is suitable for beginners who want to start a business with minimal risk and without large capital. However, the challenge is that dropshippers cannot control the stock and quality of the product directly.

Difference between Reseller and Dropshipper

To make it clearer, here are the differences between resellers and dropshippers from several important aspects:

Product Stock

Resellers are required to purchase and store product stock. This means the need for storage space and the ability to predict which products will sell. Meanwhile, dropshippers do not need to store stock because all products will be sent directly by the supplier.

Initial capital

Resellers need more capital because they have to buy products in advance and store stock. Packaging costs and shipping costs are also the responsibility of the reseller. On the other hand, dropshippers can start a business with very little capital because there is no need to buy products in advance.

Product Management and Delivery System

In terms of product management and delivery, the difference between resellers and dropshippers is very pronounced. Resellers must manage inventory, package products, and arrange shipping themselves. This gives them the flexibility to ensure quality and speed of delivery.

Dropshippers, on the other hand, rely heavily on suppliers for the packaging and shipping process.

The risk of delays or errors in delivery can occur if the supplier is not reliable. Therefore, both resellers and dropshippers must work with trusted shipping services so that the product distribution process to customers runs smoothly and professionally.

Each business model has its own advantages and challenges. If you have capital and want to control the quality of the product directly, then becoming a reseller can be the right choice.

However, if you are just starting out and want to avoid big risks, becoming a dropshipper is a smart move.

Whatever your choice, the success of an online business cannot be separated from an efficient delivery system. Pos Indonesia is here as a trusted delivery partner, supporting the needs of resellers and dropshippers with various services according to needs.

Such as Pos Sameday for instant delivery within the city, Pos Nextday for fast delivery between cities, to Pos Reguler and Pos Kargo for national delivery. For the international market, there are also services such as EMS and Pos Ekspor which are ideal for both novice and developed business actors.

With the support of the right and trusted delivery services such as Pos Indonesia, both the differences between resellers and dropshippers can build a professional business reputation and increase customer satisfaction.