Ideas and Validation October 23, 2020

How to structure B2B dropshipping?

rab

I'm looking to set up a "Fulfilled by Merchant" B2B service (aka dropshipping, where business customers order though us and orders are fulfilled by one of our signed-up merchants).

Does anyone have experience, opinion or advice on this?

Contractually it sounds less work & less liability for us if customers place purchase orders directly on our merchants.

All payments would flow through us.

  1. 1

    Hi Rab,

    In a previous venture I've built an automation platform for dropshippers.
    It sounds like you are trying to build a marketplace (like Amazon - the biggest dropshipper in the world) for B2B.

    1. 1

      Hi. Thanks for replying. It's the choice I'm currently debating (whether to make it dropshipping or marketplace). Seems there could be less liability on us if marketplace but a potential partner I am talking to is leaning towards dropshipping. Trying to identity pros and cons to make decision.

      1. 2

        If you the one who take the payments than you are the one responsible for the product, if you drop ship and the item fail to arrive to the client, you will have to issue a refund and also pay the chargeback fees...

        1. 1

          Yep dropshipping looking ever less attractive. Amazon seems to.manage this in part by refund admin fees which could be used for chargebacks.

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