In the previous article—What’s Better: Dropshipping or Full Dropshipping? Part 1/2 (#001)—we began to explore the differences between two sales models in e-commerce. Specifically, this involves dropshipping and its more advanced form, Full dropshipping. We revisited the genesis of this sales method. We illustrated and learned about the nature of dropshipping sales and outlined the steps necessary to start selling in e-commerce based on this business model. Today, we have another dose of knowledge on this subject.
What is the difference between dropshipping and full dropshipping?
As a reminder, in the full dropshipping process, the seller can focus on sales, meaning marketing activities aimed at bringing in as many customers as possible. The more customers in your online store, the greater the profit you can expect for yourself.
And here’s another paradox. In typical dropshipping, we engage in marketing activities, which bring more work, but not necessarily more profit. Why? If we have more orders, we usually need to hire someone to help, who needs to be paid.
Therefore, profits do not grow proportionally with the number of orders and turnover. This is the paradox of increasing dropshipping sales.
In the Full Dropshipping sales model—signifying nothing else but certain support for the entrepreneur—on the contrary. The more we sell, the more we earn, as it does not generate more work for the entrepreneur. The entrepreneur simply does not deal with things that occur in dropshipping.
This stems from the fact that in e-commerce, we have created a formula that allows everyone to focus on marketing, conduct their sales activities, and increase the number of orders. Here we can focus 100% on these advertising activities.
Other things, like customer service, negotiations with wholesalers, after-sales care, and complaints are taken care of by us. We have a team of specialists who continuously improve their skills and abilities to perform certain processes, including order fulfillment processes, as quickly and efficiently as possible, because that’s where we start.
What does selling in the Full Dropshipping system entail?
Shifting marketing and sales to the sellers.
The primary premise of this sales model, similar to dropshipping, is to shift sales and marketing to the sellers. There’s also what’s called role division. The difference is that the seller truly only focuses on sales, but without its handling and marketing, to ensure a larger number of customers who may be interested in purchasing.
What happens when an order is placed?
If an order appears in your store or on one of your accounts on a given Marketplace, you don’t have to worry about it. Our order department will take the order, contact the wholesaler or manufacturer, make a financial transfer as part of our cooperation, and actually redirect the package to the customer.
The logistical process begins. You also don’t need to follow it or check if everything is correct. Our logistics department will verify if the process is successful and if the package reaches the end customer on time.
We usually order goods from places where we can receive them quickly and adhere to ensuring that the package is with us within the specified time. So, this is handled by logistics specialists.
After-sales service in Full Dropshipping.
Meanwhile, we additionally handle after-sales service. When a customer contacts us with questions about where their package is, when it will be sent, or if they want to cancel the shipment, we take care of it and try to solve the arising challenge.
You don’t need to respond to these; customer service specialists will answer every question of your buyer, whether by email, chat messenger, or phone. All of this is managed by ECAT e-commerce. The entrepreneur can rest easy, as they can continue to focus on promoting their stores.
Complaints are a nightmare for entrepreneurs in dropshipping.
For entrepreneurs in dropshipping, complaints are a big problem, but not in Full Dropshipping. Regarding the complaint process, specialists from ECAT eCommerce for complaints will also respond to claims.
What’s very important is that our specialists are highly developing to stay up-to-date with all regulations and legal rules. They need to know what needs to be done in specific issues according to the current regulations or law. And this is quite a challenge.
It often happens, and there’s a smaller group of specific consultants who try to exploit this ignorance. This is such a beastly practice by consumers. And also, it’s necessary to know how to deal with it. Consumers often abuse this benefit, like what Allegro offers, allowing the posting of unfounded negative comments.
Consumers have learned to give negatives lately because they count on, for example, receiving 50-100 PLN, a box of chocolates, and even a handshake from the president of the company that did not sell the products. And now it’s important to know how to deal with such cynical actions by consumers today.
You don’t have to learn this; simply, when you operate in dropshipping, it’s all on your side. You need to know how to react in a given situation, what to do to cope with such things as customer inquiries or such unfair practices by consumers.
In Full Dropshipping, you have people who do this for you, performing excellent work, as they have the right competences, trained over many years on how to deal with customers or how to handle difficult situations in which our business finds itself.
Besides saving time, it’s very important to note, saving nerves for the entrepreneur, because really such actions and conversations with such customers can, if we are not accustomed and trained in this area, simply burn out and exhaust anyone. Everyone has their limits of endurance.
Complaints and returns.
Another aspect is complaints and returns. And here, in the case of traditional dropshipping, these returns end up at your home, apartment, or warehouse, if you have one.
In Full Dropshipping, returned goods ordered go back to ECAT eCommerce. We have prepared many options that allow us to quickly resell the returned goods. Firstly, it is immediately made available in our internal warehouse, where delivery is the next day, and the price is reduced, as it is returned goods.
Additionally, we make it available in our brick-and-mortar stores. Within the next five years, there will be about 400 such stores across Poland, in larger cities. This allows us to quickly advertise the goods and simply sell them.
As a seller in such a return case, you lose nothing, as you don’t have it at your home, so it doesn’t take up space and freeze your funds. In your account, in this case, profit from the sale is not added, which is very important, as it protects your wallet, and the sale is treated as if it didn’t happen.
Wondering where the catch is?
We operate on a WIN-WIN basis.
You might be wondering if there’s a catch? Note that we earn when you earn, the more you earn, the more ECAT eCommerce earns. Simply, we share the earned profit, i.e., the amount that goes to you and to us, not from the entire sale, but from the profit itself.
Currently, this is a promotional distribution at a ratio of 10% to 90%. This means that 90% of the profit stays in the seller’s pocket, 10% goes to the ECAT eCommerce company for the actions I mentioned. Eventually, this distribution will be in the ratio of 30% for ECAT eCommerce and 70% for the operator.
You don’t need to sign contracts with wholesalers; we’ve already done that.
I mentioned this already in the first article of this series, and it’s a very important thing for you. In traditional dropshipping, everyone must sign a contract with a wholesaler or manufacturer, whereas at ECAT eCommerce, we have signed contracts, currently with over 200 wholesalers, which are already connected to the system, and another 200 are still in queue.
Currently, we have goods from 200 wholesalers, which you can freely use. You really choose which wholesaler you want to cooperate with and what products you want to choose and place in your store or any Marketplace connected to our Manager. 748 thousand products are waiting to be listed by you, as we hope you will be our future business partner.
Summary of the article: Full dropshipping is the perfect solution in e-commerce.
Full-dropshipping is a unique business that focuses on cooperation not only with customers but also with business partners, and that is probably what distinguishes ECAT eCommerce among various companies, where you can create your own dropshipping business today.
We do this business on fantastic win-win terms, which say, we only earn when you earn, and our goal is to help you earn as much as possible. If you earn a lot, we also earn more.
Another important element is that we handle comprehensive customer service, from the moment they place an order to delivery, after-sales service, handling complaints, and returns, should they arise. This is undoubtedly very helpful for every entrepreneur, who can then devote all their attention to marketing and focus on one thing: marketing.
I invite you to part three of the article.
In the next part of the article, we will address the issue of Full Dropshipping itself. We will indicate how it looks with us and possibly compare some issues to illustrate the differences between dropshipping and full dropshipping, as well as point out the perspectives that arise for you when you start cooperating with us.
Dołącz do społeczności ECAT eCommerce i wystartuj w biznesie.
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