What is B2B Dropshipping and its Advantages?

DropShipping is a great option for B2B sellers

B2B businesses are seeking innovative ways to grow and satisfy customer expectations as the retail industry shifts to digitally driven. Dropship is a proven method to increase supply chain strength and manage inventory cost-effectively to get products to consumers.

Here’s a look at 7 ways the drop-ship opportunity can benefit B2B.

Meet customer expectations. Dropshipping allows sellers more inventory and selection which increases loyalty and generates incremental revenue.

Reduce inventory exposure. With multiple suppliers on tap via the drop-ship model, distributors are ready for spikes in volume, while keeping the customer experience intact.

Reduce supply chain risk. A seller’s ability to deliver products directly from a supplier directly to the customer or to a branch, lowers supply chain risk and helps customers get their items faster.

Strategically expand product range. Identify eligible product categories and work with capable suppliers and manufacturers that align to increase the assortment of sellable products.

All B2B channels can be used to expand your assortment. Dropshipping can be extended to all B2B selling channels, beyond the ecommerce site. You can also use electronic data interchange (EDI), punch-out, and other forms for electronic order entry.

You will gain a competitive edge. An expanded assortment drives more revenue, keeps existing customers from looking elsewhere to meet their needs (increasing wallet share), and helps acquire new customers as they search for products.

Conserve capital. Dropshipping is a very capital-efficient model for B2B companies. Dropshipping offers all the operational and competitive advantages of a wide assortment without the associated costs.

Drop-Ship Works For B2B

Dropshipping is a powerful tool for maximizing your return on investment. Some of the most successful distributors such as Staples and Grainger have relied heavily on dropshipping. Dropshipping can be seamless and aligned with the brand of your company and the buyer’s expectations.

Dropshipping, when well implemented with an experienced partner like CommerceHub, can arm distributors with a powerful weapon in the ongoing competitive battle for buyers’ attention, while simultaneously enabling the delivery of an exceptional customer experience.

Do you wonder why dropshipping products should be offered at B2B pricing? Keep reading to find out why.

Dropshippers were able to make a lot of money by buying products at B2C from Chinese platforms and then reselling them at higher price on their websites. Dropshippers have seen high profits over the years because this system worked.

Today, however, this strategy is no longer profitable due to the increased competition in the dropshipping sector and How do you arrange the fulfillment of your orders? This would include sending to your suppliers a file containing all of your orders each day and providing tracking numbers to clients. If you have hundreds of clients daily, this can take a lot of time.

If you have multiple suppliers, you will need to repeat the process for each one, and ensure that you share the correct file. You should also keep in mind that suppliers may not be able to respond to your inquiries within the same time zone. This could cause delays in fulfilling your orders. This could easily lead to clients complaining.

Dropshipping Products at B2B Prices with Yakkyofy

You don’t want your business to be a burden. Find a reliable supplier who will help you with your daily tasks as well as assist you in times of need. Once you have found your best-seller, you should be able make the item cost less, increasing your margins.

Yakkyofy is your ideal partner if you want to make dropshipping a success and avoid the above problems.

Yakkyofy will offer you products at B2B rates. You will receive a price quote for one item. This is usually lower than what you can find on Chinese marketplaces. We also offer a discounted price for items that exceed the minimum order quantity. If you ship all of your orders after you reach this quantity, the system will apply the discount price automatically.

If your business expands, you can request a stock quote and pay less. We will store your stock in China free of charge, so you don’t have to worry about shipping your dropshipping orders.

There’s more! Yakkyofy guarantees you a reliable, secure, and traceable shipping experience. You can also contact our customer service team at any time to resolve your issues and get things back on track.

Product assortment dramatically expanded

Drop-shipping to B2B distributors is a great way to increase the number of products that you sell. This is one of the greatest benefits of customer-centric approaches. B2B sellers need to be strategic about expanding their product ranges.

Distributors need to identify eligible product categories first, then find suppliers and manufacturers. The seller must assess the potential revenue growth opportunities and competitive advantage of each category, as well as how well a wider range can be met by key customer requirements. To make the most out of drop-ship programs, it is crucial for sellers to establish strong partnerships with manufacturers and suppliers.

Before being included in a B2B drop-ship network, suppliers must be ready to invest in the program and make a commitment to do so. As digital selling becomes more mainstream, there are many qualified and motivated suppliers who can drop ship.

For every 10% increase in the number of unique SKUs, the average revenue growth is 12%

Drop-shipping is available for all channels

Dropshipping can be extended to all B2B selling channels. Dropshipping can be used by sellers to leverage other types of transactions, beyond the ecommerce site. A robust drop-ship network can support EDI, punch out, and other electronic order entry forms. This allows buyers to make better product selections and purchases.

Drop-shipping can be a very cost-efficient model for B2B companies. Drop-shipping offers all the operational and competitive advantages of a wide assortment without the associated costs.

This can help level the playing field against players who differentiate with large assortment breadth (e.g. Amazon Business), and it gives distributors the opportunity to reallocate capital for other areas.

Drop-shipping is a way to eliminate or reduce the need to have a large network of distribution centers, vast inventory positions across many product categories, and a large number of distribution centers. Companies can focus on their strategic goals and make deeper investments in digital transformation initiatives to ensure long-term viability.

A proven competitive edge

Drop-ship models offer the best opportunity to increase product selection and drive growth, with comparable ROI characteristics and time to market advantages.

Drop-ship programs provide a competitive advantage. An expanded product line drives higher revenue, keeps customers satisfied (increasing wallet shares), and allows you to acquire new customers by allowing them to search for products.

Forrester Research found that 90% of B2B buyers use the internet to find suppliers. This expands the reach of search engines and gives sellers more coverage. Distributors can “stay in business” and increase market share by doing this.

This model is being used by new entrants to the B2B market as well as growth-driven leaders such as Grainger to increase revenue and win business from established leaders in many vertical markets. Distributors must be able to demonstrate the availability of more products to keep their business thriving in digital-first age B2B purchasing.