5 Difference Between Dropshipping and Multi-Vendor

I am currently learning Magento. I would like to create a multi-vendor Magento application where vendors can add their products to the sale. When I search for multivendor extensions in Magento I get dropshipper module results. I would like to know the differences between multi-vendor extensions and dropshippers. Could you please explain it?

This discussion is more about semantics and terms than Magento. Multi-vendor is a website that sells products made by other vendors. This distinction is obvious to most people. Dropshipping allows customers to think they are buying directly from you, but in reality, you only handle the order and it is handled by third parties.

To elaborate:

  1. Dropshipping is where you sell products that are actually managed by third parties. After you handle the order process on your website, you will forward it to the third party. They will send the order. Most of the time, the client ordering does not know about this. The package is sent by a third party under your name, along with your logo.
  2. Multi-vendor websites allow customers to choose from multiple vendors. Etsy and eBay are two good examples. They offer a variety of small shops that are run by many people.

The most important thing about a drop-shopping site is that it is managed by one person or company. You combine products from different vendors and’sell’ them on your site. Multi-vendor sites require you to manage a store for each vendor and provide logins to their individual stores.

Multi-vendor app using Magento. This means that either seller or vendor can log in to magento and upload their product, manage inventory, manage orders, and manage to ship. There are many types of multi-vendor marketplaces. For example, sellers can add new products or old products. Or sellers can select the product from the global catalog.

Even with advanced concepts, marketplace vendors can ship their products using dropshipping. For example, the admin can assign a particular vendor to dropshippers and order and delivery management will be done from the dropshipper

Dropshipping with Magento – In this scenario, you don’t need to create a marketplace. What will happen is that you start your own store but don’t want to keep a product warehouse. In this case, dropshipping can be very useful. Dropshipping is the process of having an order shipped to your site and fulfilled by them.

Dropshipper must be added by admin. Admin can also add shipping methods dropshipper offers. Buyers can then choose their shipping method during checkout. Dropshipper will handle all delivery. Your store will function as a front-end where the buyer can choose their shipping method.