For the purposes of this guide, we don't need to get quite so detailed in the definitions of the Suppy Chain Management. You simply need to understand the three most applicable players that make up the dropshipping supply chain: manufacturers, wholesalers and retailers.
Manufacturers create the product and most do not sell directly to the public. Instead, they sell in bulk to wholesalers and retailers. Buying directly from the manufacturer is the cheapest way to purchase products for resale, but most have minimum purchase requirements you'll need to meet. You'll also need to stock and then re-ship the products when selling them to customers. For these reasons, it's often easier to buy directly from a wholesaler.
Wholesalers buy products in bulk from manufacturers, mark them up slightly and then sell them to retailers for resale to the public. If they do have purchasing minimums, they're generally much lower than those required by a manufacturer. Wholesalers will usually stock products from dozens – if not hundreds – of manufacturers and tend to operate in a specific industry or niche. Most are strictly wholesaler operators, meaning they sell only to retailers and not directly to the general public.
A retailer is anyone who sells products directly to the public at a markup. If you run a business that fulfills your orders via dropshipping suppliers, you're a retailer.
If you opt for the dropship service, we at Uniqbe will execute the Order Fulfillment on your behalf. We will ensure that your goods are packed correctly and shipped out to the correct address as well as track the package as it is delivered. Our shipping operation is well oiled and experienced in the fulfillment process and we understand how sensitive pricing can be on a daily basis. So a quick-turnaround from Order to Shipment is critical for your business.