Dropshipping v Marketplace
by rabWould you rather create and run a B2B dropshipping company or a B2B marketplace?
What are your reasons?
Trending on Indie Hackers
💯 users 💯 days
How to fight back against Google FLoC
💪 A story about perseverance, success and the proper mentality for it.
Building in Public for the first time!😲
Personally, I think the drop shipping model is a bit risky.
I know there are many that do it, but knowing what I know after running an online B2C business for the last 12 years, I wouldn't personally do drop shipping.
That said, I do like the idea of a marketplace better, because you're just facilitating a transaction btw two parties. You're not involved, other than hosting the platform, and driving traffic to it. If there's an issue with the transaction/purchase, it's between the buyer and seller -- and you're out of it.
There are several marketplace SaaS services available, and I suppose you could utilize those for B2B or B2C marketplaces.
I'm contemplating adding a B2C marketplace on one of my sites, so I'd vote for the B2B Marketplace.
Thanks @iammike.
Interesting you're considering to implement. Agree marketplace host is distanced in involvement, liability & reputation (verses dropshipping which needs watertight suppliers).
We've assumed commission-based payments with money flowing through us, so will need some involvement especially for refunds. Have been looking at Amazon FBA and FBM as reference.
B2B Marketplace, because there is more long-term value:
But, B2B Marketplace is hard to launch and it take a long time to grow.
So I guess depends on what your goal is.
Thanks @farez. Goal is to become "one stop shop" in niche. Reputation & liability flow from dropshipping suppliers is a concern. Perhaps there is a path from dropshipping with hand-picked suppliers to marketplace if sufficient buyers and sellers found. Thanks for your thoughts.