For years there’s been a growth in small webstores who’d rather not store their own products. As a result, a commonly asked question to suppliers was whether they could ‘ dropship’, directly delivering their products to the customer. Because of this question a big part of professional wholesale businesses and brands altered their logistical processes to be able to ship directly to the final customer.
In the last few years the online sales shifted from small niche webstores to big marketplaces like Amazon, Bol.com in The Netherlands and Cdiscount in France. Most stores sell their products on multiple marketplaces and automatically send their orders to their suppliers who ultimately ship the products. In this process the small dropship webstores hardly add value. The wholesale businesses do all the work, they own and ship the products.
Due to this change, a lot of wholesale businesses decided to connect their own e-commerce or ERP system to the different marketplaces. This way, they are able to optimise the margin and leave enough room to pay the marketplace commissions. By cutting out one link in the supply chain the profit rises and the wholesale businesses are now in full control of their product placement.
This approach can also be used, for example, to quickly get rid of overstock stock products or to increase the sales volumes for specific product groups which adds to the purchasing power resulting in better margins. In our experience an increase number of wholesale businesses turned out to be really successful selling their whole collection of products in on international marketplaces.
Sometimes they directly connect their system to every single marketplace, which requires a technical implementation and maintenance for their own IT system for each connection. It also takes a lot of time, patience and precision. This is where an integrator platform like ChannelEngine comes in. ChannelEngine offers the possibility to link products to multiple marketplaces in a few steps. With endless selection possibilities, wholesale businesses can easily set business rules to determine want products to sell on each marketplace at which price. The stocklevels, pricing and orders are automatically synchronized and updated to the marketplaces of their choosing. International billing and value added taxes are correctly handled which offers a wide range of international choices in marketplaces.