Fulfillment services VS Drop-shipping services

Free Member
preston_pilgrim
Posts: 7
Joined: 24 Sep 11
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25 Sep 11 04:23:57 am
Hey guys,

Just wondering what the differences are between these two services? I herd that Drop-shipping is a good starting point for beginners in the E-commerce business world, but i was wondering if Fulfillment services are a good idea when first starting as well? I was also wondering what the price differences are?

Any information provided will be very helpful

Thank you in advance


Site Admin
fudjj
Posts: 5912
Joined: 27 Jul 07
Karma: 
25 Sep 11 08:11:24 pm
A fulfilment service provides storage and distribution, larger ones will offer picking and packing as well. So if you are buying a large volume of products, but are perhaps not geared up to hold the stock or you are in another country and don't want to import, then this is where a fulfilment service is of value.

Of course the bottom line is they are dealing with your stock, so it's stock you have to purchase up front. A drop shipper requires no cash outlay for stock up front, at least that is in most cases. Some may charge membership fees or other type fees.

So with drop shipping you are advertising the product, then when you sell it you place the order with the drop shipper, and they ship it direct to your customer after you pay them.


Mark (fudjj)

Community Manager
SaleHoo.com

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Free Member
preston_pilgrim
Posts: 7
Joined: 24 Sep 11
Karma: 
26 Sep 11 05:42:47 am
Thank you for the information it is very useful.

Full Member
t0psales
Posts: 383
Joined: 25 Jun 08
Karma: 
26 Sep 11 06:26:11 am
Very Risky one that one.

Free Member
preston_pilgrim
Posts: 7
Joined: 24 Sep 11
Karma: 
26 Sep 11 07:17:04 am
Very Risky one that one.


What do you mean?

Full Member
t0psales
Posts: 383
Joined: 25 Jun 08
Karma: 
26 Sep 11 07:37:04 am
you purchase all that stock and leave it with the fulfillment company only for them to sell it for themselves and debunk with the money.

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