Key functionalities of the B2B platform for dropshipping wholesalers

Table of contents:

• What is Dropshipping?
• The two sides of dropshipping - how the process works
• Why should wholesalers consider dropshipping?
• Building a dropshipping-ready B2B platform - what to include?
• Scale your online sales with a dropshipping platform

Selling online comes with a host of responsibilities – from managing your sales platform and customer service to marketing, logistics, and inventory management. Does this mean you have to handle everything on your own? Not necessarily. Dropshipping is a business model that allows you to focus on what you do best – whether it’s selling or logistics – and streamline the entire process by collaborating with partners. If you’re a wholesaler looking to expand your business by partnering with dropshipping sellers, discover how a B2B platform designed for dropshipping can support your strategy and help grow your business. Read the article for practical insights and tips!

Dropshipping is a sales model that has grown in popularity alongside the rapid development of eCommerce. Its key feature is that the seller does not need to maintain a physical inventory of products. Instead, they sell goods stored in a wholesaler’s (supplier’s) warehouse. How does it work in practice?

When a customer places an order on an online store, the seller forwards the transaction details to the supplier. The supplier is responsible for packing and shipping the order directly to the customer. This arrangement allows sellers to focus on running their business, marketing, and customer service while suppliers benefit from scaling up sales without the need to run their own online store or engage in marketing efforts.

In the dropshipping model, two key players are involved in the sales process: the seller, who owns the online store, and the supplier. For the end customer, this division is entirely invisible – they place an order on the store’s website, and the product is shipped directly from the supplier’s warehouse. From the customer’s perspective, the process is no different from any other online purchase. This division of roles optimizes the sales process by leveraging the strengths of both parties:

• The seller (online store owner) - the seller’s main role is to promote products, run marketing campaigns and create a shopping experience that attracts customers. Sellers don’t have to worry about inventory or logistics, enabling them to expand their product offerings quickly by adding items from various suppliers. For small businesses, dropshipping offers a low-investment way to start, while for larger online stores, it provides an opportunity to diversify offerings and test new products with minimal risk.
• The supplier (wholesaler or warehouse Owner) - the supplier is responsible for storing products, managing inventory, and fulfilling orders, handling all logistics. After receiving order details from the seller, the supplier prepares the package and ships it to the customer, ensuring quality and timely delivery. By partnering with multiple sellers, the supplier can significantly expand their market reach and boost revenue.

The dropshipping model creates a perfect balance between these complementary roles, allowing both parties to scale their operations while minimizing costs and risks.

Dropshipping allows you to focus on your core strengths and turn them into an additional source of revenue. For suppliers, this means managing your warehouse and logistics effectively. Partnering with online sellers enables you to scale your business without having to handle retail sales, marketing, or customer service. This model maximizes profits while minimizing risk and additional investment. Here are some key benefits for suppliers:

• New sales channels and diversified revenue - dropshipping opens opportunities to collaborate with multiple online sellers, allowing your products to reach a broader customer base through various stores. This reduces reliance on individual clients and stabilizes your income.
• Reduced costs - in dropshipping, marketing, sales, and customer service are the responsibilities of the sellers. This frees you from the need to invest in advertising campaigns or hire staff for customer support, significantly reducing operating expenses.
• Increased margins - suppliers can charge additional fees for services like product storage, packing, and shipping. Additionally, offering value-added services, such as product customization (e.g., adding a seller’s logo to packaging), allows sellers to differentiate themselves in the market while providing suppliers with an additional revenue stream.
• Efficient use of warehouse resources - dropshipping allows suppliers to fully utilize their existing assets, such as warehouse space and logistics systems. Fulfilling additional orders in a dropshipping model requires minimal investment and relies on effective management of current infrastructure.

As a supplier operating in the dropshipping model, investing in a B2B platform tailored to the specific needs of business collaboration is crucial. Such a platform not only streamlines product and order management but also facilitates seamless integration with sellers' systems. With a flexible engine, like Magento (by Adobe), the platform can accommodate advanced customization and automate processes efficiently. Key features to include in your B2B platform:

• Custom pricing - the ability to assign individual prices to different sellers is critical. This flexibility allows you to adjust terms based on order volumes and contractual agreements.
• Seller management - the platform should enable you to manage relationships with multiple sellers, including partner registration, order tracking, and sales performance analysis. This strengthens business relationships and helps address partner needs quickly.
• Support for bulk orders - a dropshipping platform must be equipped to handle large, wholesale orders efficiently. Features like bulk cart management, quick order processing via CSV/XML files, and cost summaries simplify the execution of larger transactions.
• Advanced product management - integrating a Product Information Management (PIM) system, such as Pimcore, allows for streamlined product data updates, including mass edits to descriptions and attributes. This ensures all data remains accurate and consistent.
• Data security - a B2B platform must prioritize data security, particularly for sensitive information like wholesale pricing, contract terms, and order details.

Additionally, an intuitive user interface and seamless navigation are essential to ensure a positive user experience for both suppliers and sellers.

A B2B platform designed for dropshipping enables you to fully leverage your resources – products, warehouse, and logistics – to scale your business dynamically. Features like seamless integration with sellers’ stores and tools for managing inventory and orders streamline operations and drive growth. In conclusion, a dropshipping-enabled B2B platform simplifies daily operations, fosters long-term partnerships, and enhances your competitive edge in the eCommerce market. Thinking about incorporating this solution into your business? Contact us – we’ll help you bring your vision to life!