Focalprice, Retail Stores After Bulk Sale On Dropshipping
Dropshipping has emerged as a concept in the internet retail world getting popularity leaps and bounds
. All the famous ecommerce business-to-consumers (B2C) ventures like Focalprice, ebay, etc. take advantage of this idea materialized by the partnership of two independent businesses working for the similar objective: bulk sale. There is no limit on the numbers of dropshippers. A business can team up with many of them at the same time.
Is it ethical? Many wholesalers advocate of the fair trade practice that they say dropshipping follows. In a bid to regain declining market share, wholesalers in the U.S. first introduced the concept that still is a best means to strengthen the supply chain management.
In its present form, dropshippers supply products to their customers like retailers. These products may consist of assortments of consumer electronics, games, fashion cloths, utensils, kitchen items, etc.
In some cases, wholesalers despite using their distribution channels authorize dropshippers to determine independent price structure without interference in line with the market dynamics. Typical online catalogues follow the model to give a boost to sales.
Focalprice, for example, gives its dropshippers independence in formulating marketing strategies. The Chinas leading online store having 70,000 items across 100 categories has free delivery arrangement for consumers in 200 countries. Its best deals save buyers substantial money as they put up with 10 to 70 per cent discounts.
Its dropshipping agreement means free delivery, no price tagging, and hidden source to enable dropshippers to maintain identity, retain customers, and set own prices.
This last fact stirs the minds of consumer rights activists. The practice does not sound fair since someone seems to be running businesses or racking up profits because final consumers are unaware of the real price or hot deals cropping up out of their sights.
Unlike wholesalers who dont deal with the end-users, online retail directories or b2c enterprises have no restriction on single purchase. A buyer can, for instance, buy anyone of the HP brands from such online shops. And, when some daily deals are flickering there he/she can lay hands on them then and there.
So, the simple reservation is on the price disparity that appears without justifiable reasons. The businesses that extend services of original sellers do not need to make upfront investment, manage inventories, and hold warehouse in most of the cases. They are the marketing channels to promote products far and wide. Generally, products are delivered from the warehouse of online stores only after the orders are placed.
The defendants of price disparity justify it with the marketing efforts dropshippers render in attracting customers. But, how this can legalize charging high prices or depriving uninformed consumers of price concessions they deserve. The instances have been reported in which prices of a product have 50 per cent differences.
On the other hand, commission-based dropshipping understanding is quite feasible since it compensates services that internet companies put forward in the course of attaining bulk sale objective in addition to ensuring uniformity in rates across the internet retailer world for all and sundry.
by: Tariq Saeedi
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