Dropshipping is a fulfillment process where dropshippers buy products from suppliers and ship them directly to the consumers.
Dropshipping b2b is an online business model where the transactions occur between two business parties; rather than between a business and end-user.
The B2B dropshipping facilitates the trade between manufacturers and wholesalers ( and wholesale distributors).
If you are willing to start the dropshipping b2b business, you can get through this article. Our dropshipping expert provides you the basic guideline.
- What Is B2B Ecommerce?
- What Is B2B Dropshipping?
- How Does B2B Dropshipping Differ From B2C Dropshipping?
- Why Dropshipping With B2B Ecommerce?
- How To Select B2B Dropshipping Suppliers?
- Where To Find B2B Dropshipping Suppliers?
- FAQ For B2B Dropshipping
- How Leeline Sourcing Help You Find Best B2B Dropshipping Suppliers
- Final Thoughts about B2B dropshipping
What Is B2B Ecommerce?
B2B e-commerce or business to electronic business commerce is an online sales portal. Here the sale of services and products takes place.
It is different from the B2C, which describes the online business transacted between business and individual customers.
Business to business e-commerce is an online transaction where both the parties involved are businesses. In other words, when the company sells its services or products to another company – which is its customer, it is a B2b transaction.
B2B e-commerce comes in different shapes, sizes, and levels of complexity. They can span many business models and sectors, starting from services like accounting, legal, digital to physical products like machinery, consumer goods, equipment, and many more.
What Is B2B Dropshipping?
With the rise of B2B dropshipping, the market has become more competitive, so retailers have to focus on building their brand and providing an excellent customer experience to stand out from the competition.
Dropshipping is a very successful business and is growing day by day. Dropshipping is a supply chain where the reseller will not keep the goods and will transfer them to B2C orders and shipments to the supplier, also known as the drop shipper. The drop shipper will send all the products directly to the private customer.
Dropshipping is a great business solution, and it allows small businesses to make a more significant profit and scale accordingly.
B2b dropshipping enables companies to save money on the packaging and shipment and still builds a brand that customers like to buy and use.
How Does B2B Dropshipping Differ From B2C Dropshipping?
B2B eCommerce is an online business, refers to a business transaction between two companies. Generally, b2becommerce facilitates online transactions between the manufacturer and wholesaler or between a wholesaler and retailer.
In the b2b ecommerce, the transaction occurs between two businesses, while in b2c ecommerce, the sale happens between business and consumer.
In the b2c business model, the seller provides the goods directly to the consumer. I ship products for both B2B and B2C business models. Here are the areas where these 2 differ from each other:
1. Different Purchasing Clients
The primary difference between b2b eCommerce and b2c ecommerce is the customers. Both of these customer types have different needs, requirements, and the way they product sourcing.
In business to consumer purchase, the buyers or individuals make the decisions. The individuals can buy either for themselves or for someone else.
The b2c ecommerce involves one-off transactions and short term relationships with the consumers. It offers a large number of customers with broad marketing messages. The purchase is always small and mostly happens one time.
As compared to b2c, in the b2b ecommerce, many individuals make the buying decision. And it can affect many people at a time, and it offers multiple contact points within the company. As a B2C drop shipper, your target audience is the end-user.
The long term relationships are developed between the two parties or dropshipping businesses. It involves a smaller lead pool, which means more defined marketing and accounts to sell. In the b2b business, the purchases can be in the millions of dollars.
2. Different Purchasing Process
In b2c business, consumers buy products or services for personal use. While in b2b ecommerce, the buyers purchase the goods or services for their companies.
In B2B eCommerce, the purchasing process is very complicated. The decisions making groups include members from the technical, financial, business, and operational departments, depending on the type of purchase.
The person selecting the product may have the authorization to purchase or may not have the responsibility for making the final decision. The large capital purchase may require approval at the board level.
3. Different Marketing Strategies
In this regard, B2B marketing strategies seek to offer educational and in-depth product information. With a B2C dropshipping business, your target market is often individual consumers or end-user. Depending on your target market and product niche, you could use either model exclusively or combine them to optimize your revenue.
The b2b and b2c businesses have a fair share of marketing. It is to be noted that what marketing techniques will be beneficial for each type of business.
In b2b, keep in mind that potential customers are looking for a great deal of expert-level information. At the same time, b2c buyers are not interested in lengthy marketing materials. They would like the benefits presented to them simply.
In B2B marketing, everyone tends to use business terminologies to showcase business expertise. In contrast to it, business to consumer marketing involves the use of simple language, which can understand by a wide range of customers.
In, i.e., b2b and b2c businesses, at least one business community needs search engine optimization. Search engine optimization helps new customers find b2b or b2c companies.
4. Different Communication With Buyers
The B2B aims to develop long term relationships, which demands one to one communication. They often use the marketing tools to nurture leads across the course of the lengthy sales funnel.
The b2c business offers to provide the platforms where they can communicate with the suppliers and give them feedback about the quality of the products.
This type of business does not demand long term relations with the retailers; that’s why instead of focusing on communication, they try to get the customers who can buy from them.
The seller only tries to get positive feedback or review, which helps to generate leads and attract potential buyers.
5. Different Purchasing Quantities
The first and most significant difference between the b2b and business to customer e-commerce is purchasing quantities.
In b2b, the company supplies the goods to other companies in large numbers. In the b2c, the company provides the products according to the needs of the consumers. And therefore, order volume in b2c is quite small as compared to the b2b ecommerce.
According to the current statistics, the money transfer in B2B trade is twice the company to customer’s capital flow.
The report of Forbes depicts the valuation of the B2B eCommerce market will reach up to $6.7 million by 2020.
Why Dropshipping With B2B Ecommerce?
Dropshipping is a well-known ecommerce business, which is growing tremendously. You can start the dropshipping business with small startup costs and earn substantial profit margins.
Furthermore, there is no need to store the inventory. The supplier delivers the products directly to the buyer’s or consumer’s address. Making drop shippers our most typical clients in our freight forwarding business.
The following are the features of dropshipping with B2b eCommerce:
· Better Brand Loyalty
In business to business e-commerce, brand loyalty is a crucial factor for the sales process. The companies tend to achieve long term commitments when they get engaged with other companies. They also try to attain foster partnerships that can generate a good portion of their revenue.
· Lower Prices Upon Buying Higher Quantities Of Products
It is a fact if you buy the products in bulk, it will reduce the per piece price. Therefore, if you order thousand or more pieces at a time, it will offer you more profit margin by lowering the per-item cost.
Besides, the shipping cost decreases as you order the goods in large numbers. That’s why; it offers you a huge profit margin.
a) The More Products You Purchase, The Less You Pay
There are many sites or stores, which decrease the purchase price you buy a specific number of objects. In B2B drop shipping, you have to buy products in bulk; therefore, you can get many discounts, which will increase your profit margin.
b) The More You Buy, The More Your Supplier Will Value You As A Client
If you are buying a large number of products, it will enable you to offer a wide range of goods as the seller. And it will enhance your value as the best supplier.
c) You, Will, Have More Bargaining Margin On Prices Your Supplier Quotes To You
You can discuss the prices of the products with the supplier. You can also ask for concessions or discounts. It will help you to get Chinese goods at the lowest or economical rate.
· More Stability In Shipping Times
The shipment charges and shipping timings are two crucial factors that can ensure the success of your business. It does not matter you have a b2b or b2c marketing, and the client will always ask for on-time delivery of goods. If you want to keep the consumers happy and satisfied, supply them their parcels on time.
Well, as you know, the b2b ecommerce is happening between two dropshipping businesses. Therefore the supplier business tries to fulfill all the orders on time. And it helps the supplier to get positive feedback and helps in the growth of the market.
Retailers are dependent on suppliers to fulfill orders and manage inventory. If the supplier experiences stock shortages, shipping delays, or quality control problems, it can impact the retailer’s ability to fulfill customer orders and damage its reputation.
Suggested reading:Professional Packing & Shipping Service
How To Select B2B Dropshipping Suppliers?
The dropshipping supplier is an essential factor that can determine the success of your business. If you are interested in starting a business and do not have enough money, dropshipping is a good option.
But to ensure the success of your business, try to choose a reliable and trusted supplier. In dropshipping, the drop shipper does not online store the inventory. Instead, the supplier directly ships the products to the buyers.
Therefore the drop shipper does not touch even a single product. And rely on the reliable supplier for the quality of goods.
If the supplier sends products of good quality, the consumer can be satisfied. Still, if the buyer fails to get the required items, it can be an alarming situation for your business. Therefore, it is highly recommended to choose the supplier wisely.
Before you select a supplier for your business, it is highly recommended to do research. You can visit the trade shows to get a supplier or find them online too.
Best before you contact a supplier and give them your first order, you need to compare all the dropshipping suppliers.
You need to select the one who will provide you with high-quality goods at the lowest price and ensure you on-time delivery. We’ve worked with many suppliers who offer free shipping and discounts. So, try to ask around for freebies as well.
a) Raw Material Sourcing
The manufacturing process starts with the selection of raw materials. The quality of goods is affected by the quality of the starting materials. Therefore, try to select materials of high quality. So, you can get the best products with the required quality.
b) Delivery Times
The delivery time is a crucial factor. The on-time delivery of goods makes the consumers happy and lets them shop with you again.
Therefore, try to deliver the goods as early as possible. You can also offer a discount or, if possible free shipment of the goods. It will give you more potential buyers for your online store.
c) Service Potential
Communication is vital. Try to communicate in a better way.
· Contact Suppliers
After getting the first order, you will have to contact the supplier. And ask the supplier to start the manufacturing process, so you can make sure the online delivery of goods.
· Order Samples
The quality of products is always an issue, so to make sure the quality of goods, you can ask for a sample. It will help to determine the quality of goods. If you feel the products are not up to the mark, you can cancel the contract.
Where To Find B2B Dropshipping Suppliers?
There are many ways to get b2b dropshipping suppliers. For instance, you can get them on the trade show or can search them online.
From my experience, trade shows are the best place to interact with dropshipping suppliers. You can meet them face to face and inspect the product quality simultaneously. Hit 2 birds with one stone!
Consider the minimum order requirements of potential suppliers. Some suppliers may require a minimum order quantity or a minimum order value, which can impact your cash flow.
· Chinese Factories Indirect
You can also visit the Chinese factories directly. Many product sourcing companies offer you a factory visit, and Leeline Sourcing is one of them. You can seek the supplier through the sourcing companies and get the best reliable, and trusted suppliers.
If you are not willing to visit the factory, the company is present there and will do a factory audit in place of you.
· China Dropshipping Agent
There are many dropshipping agents ready to provide you their services. You can contact any one of them according to your needs and requirements.
Leelinesourcing is one of the best Chinese companies, which offer its services to all traders from all over the world.
The Leeline Sourcing Company provides you a trusted and reliable supplier. The company can also inspect the goods and even visit the factory to offer you the most authentic products.
Suggested reading:Best Dropshipping Agent in China
· Best Chinese B2B Websites
The b2b wholesale website is a shift from physical stores towards online business.
The traders find it a better option as the total cost and other charges are quite low in the long run.
Therefore, you can see exponential growth in b2b ecommerce.
The following are the best wholesale marketplaces, which host hundreds of sellers and buyers from all over the globe.
Alibaba was founded in1999 and began as a way to connect the Chinese manufacturers with the buyers overseas. It has grown to be one of the most successful companies on the planet.
On the 17th of June, 2017; its market cap had grown up to the $360 billion. The founder Jack Ma is doing something right. Alibaba offers a platform to the other B2B ecommerce dropshipping businesses to learn from them.
Alibaba is one of the most significant platforms for getting the required products. Though they do not sell in small quantities, you can contact them if you are willing to buy a huge amount of products.
Also, you can call them if you want to purchase products that are custom made for you or branded to your business, and then it can be a viable option for you.
They make take weeks to months to deliver the products. Before you buy the bulk products from the Alibaba, you need to contact the AliExpress.
As you can get similar products from AliExpress, and then compare the prices to get the best products at lower prices.
Alibaba.com and Alibaba’s b2b market place connects the Chinese suppliers to overseas buyers. They are now opening the platforms for the small and medium-sized sellers in different regions of the world to expand their business at the global level.
The international business to business site connects dropshipping suppliers with the buyers across the world on the single marketplace platform.
Alibaba.com has launched many new features to help dropshipping suppliers from all over the globe with onboarding and marketing.
Multiple suppliers and manufacturers and sell the goods in bulk to the buyers for inventory for their companies. This company also operates other related e-commerce sites, including Tmall, Taobao, and AliExpress.
Sellers can join the site without paying any charges. The membership on Alibaba severely limits the number of goods for display and access to the promotional tools, rendering it functionally to the most companies hoping to expand.
For the vendors, it is mandatory to visits the market so that they can get an idea about the audience for the said product. Alibaba already helps to export products from China.
Suggested reading: Is Alibaba Safe and Reliable? Is Alibaba legit? : Free Guide
Suggested reading: Alibaba vs Aliexpress
ECVV is among the top market places for the B2B business, and a lot of traders rely on them for their business. The e commerce platform was launched in 2003, and since then, it has facilitated the thousands of B2B companies.
The site tries to create a closer relationship with global suppliers and buyers. Beside it, the site also offers the best business to business marketing plans. So, they can generate a strong online presence.
The website has more than 2.5 million registered users and helps the business deals from almost 220 countries. In 2011, the annual trade volume of ECVV was recorded more than $5 billion.
The Shenzhen Government and the American International Business Council have recommended this B2B platform.
The websites are the most popular B2b platform and deal with many products like electronics, pulse managers, Bluetooth speakers, and many other fashion accessories like watches and sunglasses.
You should dropship with the ECVV because
- They assure you about the excellent quality of products
- Their price list is cost-effective, as compared to other marketplaces
- They offer you a safe and effective method of payment
- They also provide the shipment tracking and prompt delivery
Suggested reading: Shenzhen Electronic Market Guide
DHGate is present at the 1069 position in the global rankings. The Chinese company is one of the best and leading Alibaba competitor’s operation to promote local businesses online. DHGate has more than 30 million products to choose from.
The site aims to help the Chinese manufactures and suppliers so that they can connect with traders at the international level. This market leader has helped 5 million users from more than 227 countries.
China is a massive nation, and you cannot rely on the supply of local clients. So, to grow your business, you need an entry into the international grid. DHgate is a good option to start an interaction with foreign buyers.
The site has launched the app for all iOS and Android users. Just like TradeKey, the company also had to go through a phase where their services were being called scams.
Well, their product quality services helped them to recover and manage to walk past that time.
At this website, the consumers can buy electronic products, clothing, christmas decorations, summer clothes, decorative stuff, sports items, garden furniture and many more.
The company provides more than 30 million products in over 226+ countries. The company serves almost 5 million customers and is currently listed among the 2100 most visited sites.
DHGate is well known online marketplace which deals with the goods being manufactured in China. It offers a wide range of products at an economical price. So, in this way, the sellers can earn a considerable profit margin.
The following are the main features of the DHgate.
- The company has a buyers protection plan
- They offer a secured refund policy
- They provide you express delivery
- And lastly, you can also get the shipment tracking facility
Suggested reading:Top DHgate Alternatives: Websites Like Dhgate
Suggested reading: Alibaba vs Dhgate
Suggested reading: Dhgate Shipping Time
Suggested reading: How to apply for a refund on Dhgate?
e) Global Sources
Global sources stand among the first B2B online marketplace places. The e commerce platform was launched in 2000. It is based in Singapore, and it runs to attract the sellers and buyers from the all-region of the world.
Every year thousands of online marketplaces pay a lot of money and get their brands featured on this site. Global sources offer a comfortable and friendly platform to the traders so that they can get connect.
It is the best competitor of the Alibaba and offers a director filled with the leading Chinese manufacturers and suppliers.
Furthermore, it is affiliated with the International Trade Fairs of Hong Kong. It is a trade event in which all the leading traders from China, Hong Kong, and Taiwan participated.
One of the best things about the site is that all the users are authentic and verified. That’s why if you are searching for high-quality brands, this platform is the best choice for you.
The site serves as a directory comprising of suppliers and manufacturers from all parts of the world. Several numbers of Chinese businesses are available on the Global sources.
According to statistics, about 95 out of 100 retail chains in this world use Global sources for collaboration with manufacturers and suppliers.
The business offers a wide range of choices for both suppliers and manufacturers. Therefore, the site has risen from the bottom to the top.
And now, it is known as the best business to the business platform in China. You can get home appliances, industrial machinery and many more goods here.
The site offers you the following advantages:
- The site provides reliable suppliers
- You can meet the suppliers at the trade show
- The company supports the buyers in case of any dispute
- The site owns top 94 stores of the world
The company is one of the best b2b marketplaces. It was launched in 1966 by the Focus technology. The b2b Chinese market is a competitor of Alibaba, so that you can trust the site.
The main objective of launching this e commerce platform at the international level was to encourage local small and medium-sized companies with foreign buyers.
Made in China is a well-known organization, and it is well famous for its ability to offer high-quality products. The company also helps small scale businesses to get fame at the international level. The site also helps the other traders to get their products listed in a top 10 list.
Made in China is a step eCommerce store. The sellers can get the packaging and printing services there. Beside it, the company also provides the manufactured products for a wide variety of product lines.
They present themselves as one of the few wholesale distributors that excel at the value addition for the products that they deal with.
The following are the attractive features of the Made in china:
- They give you high-quality labeling, packaging and printing solutions
- Their products are focused on the innovations
- The end products aim at protecting the environment
- Made in chine provide free of cost shipment within China
Suggested reading:Made in China vs Alibaba: Which one is better?
FAQ For B2B Dropshipping
While dropshipping from China, you may encounter many questions. All the possible problems with the best possible answers have been given below.
What are the pros and cons of dropshipping?
Dropshipping pros By outsourcing inventory management, businesses can reduce storage , handling , and administrative costs . Businesses can also lower their financial risk , particularly regarding damaged products.
Choose a platform that integrates well with your suppliers’ systems and offers features such as inventory management and order tracking.
What Is The Best Dropshipping B2b Website?
The business to a business website is a marketplace that is designed to sell products and services to the other companies and not the retail consumers. The sites www.oracle.com, w www.uline.com, and ww.cat.com are the best examples of the B2b websites.
The b2b ecommerce describes the online transactions between different dropshipping businesses. The orders are processed digitally, and the buying process is improved for the wholesalers, manufacturers, wholesale distributors, and other types of sellers.
The b2b ecommerce has shown rapid growth during the past few years. The b2b business has surpassed the $10.6 trillion in revenue.
· Is Amazon A B2B Or B2C?
Amazon does b2b marketing when they sell the products to the customers. B2c marketing occurs when sellers well to the end-users or consumers. Amazon also does b2c marketing. Amazon sells digital products like eBooks, videos, and mp3.
Suggested reading:How to Start Dropshipping from Amazon to eBay
Can I Use Dropshipping Automation Software?
Yes. Dropshipping automation software can help you automate many aspects of the dropshipping process, such as order fulfillment, inventory management, and shipment tracking. Popular dropshipping automation software includes Dsco and Inventory Source.
What Is The B2B Strategy?
B2B marketing is referred to as marketing strategy or content which is geared towards the market. The company sells services or products to other companies or organizations rather than the end-users or customers.
How Do You Target B2B?
The b2b is growing day by day and to stand out and built yourself, and you will need to have a solid customer base. Here you will target the people who will benefit you with their services.
It is effortless to think that you will target only those who are interested in your products. But it is not possible to resonate with each person, especially when you are a smaller business up against the well-renowned brands.
In this way, you can compete with the famous brands by targeting a particular class or section of the market. You can attract potential customers to buy identifying the target market.
Depending on your target market, B2B dropshipping can be an advantageous sales strategy for your dropshipping businesses. Here are some of the scenarios when B2B dropshipping is a feasible business model: Seasonal Products and Seasonal products are the items that mainly relate to a specific season, such as a festive period.
The following are the points you need to keep in mind while determining your target audience.
1. Find out the need for your products or services
2. Analyze your current customer base
3. Research about your competitors
What Is The Purpose Of B2B Marketing?
The B2B marketing targets interests and needs of individuals who are making purchases on behalf of their organizations, and thus making the organization a customer here.
Why Use Specialized Software?
Using specialized software that lets you combine dropshipping with wholesale sales management means you can enjoy all the benefits of dropshipping without having to worry about practical or technical concerns. With software like Erplain, you can diversify your business by combining different distribution strategies . New sales channels and new markets By working with multiple re
tailers or business owners, suppliers can expand their reach into new markets and increase their brand recognition.
Is B2B the Same As Dropshipping?
Basically, B2B is wider than dropshipping, but dropshipping works well as a B2B model/ In a B2B dropshipping model, a retailer would use dropshipping as the fulfillment method for selling products to other businesses. B2B dropshipping, in such a case, means that the products will be shipped directly.
B2B dropshipping offers your business a better cash flow as compared to manufacturing or maintaining a product inventory.
How Does Dropshipping Works?
The Dropshipping is a service with which you can have fast access to the B2B GRIFFATI product catalogs and sell clothing without having them physically in stock! All you have to do is forward to B2B GRIFFATI the orders that customers make in your e-commerce, which will independently ship the package.
Dropshipping works like direct shipment, but without the need for a distribution center.
Does Drop Ship Work for B2B Businesses?
Yes, B2B dropshipping is just as lucrative as B2C dropshipping, if implemented accordingly. As a matter of fact, some of the leading distributors like Staples, Cardinal Health, and Grainger use the dropshipping model extensively. As demand shifts to digital channels, it makes sense for B2B businesses to incorporate eCommerce strategies, including drop shipping.
How Do Retail Start Selling Wholesale?
Set up your current retail or online store to support wholesale customers. Use price lists to reduce your retail prices by percentage or fixed amounts. Add payment terms on B2B orders and tax exemptions to company profiles
Does Dropshipping Work For B2B Businesses?
es, dropshipping can work for B2B businesses. In fact, dropshipping can be an effective way for B2B businesses to expand their product offerings without the risk and expense of holding inventory while also being able to offer competitive pricing and customer service to other businesses.
How Leeline Sourcing Help You Find Best B2B Dropshipping Suppliers
Check online reviews of suppliers and products sold (taking into account the sales volume) to ensure you choose serious, trustworthy partners. Remember to also check returns policies and shipment times for different products. You can also approach your usual suppliers and negotiate direct shipment with them for certain products.
B2B dropshipping is also a great idea for products currently out of stock. Find a Reliable B2B or B2C Dropshipping Supplier Whether you decide to use the B2B or B2C eCommerce model in your dropshipping businesses, you need to find a reliable and reputable supplier. Expensive or large items (like machines) for which direct shipping could reduce storage and transport costs. Products with a fast turnover for which demand is high and constant (food, drink, hygiene products, etc.)
Leelinesourcing is the place to get reliable suppliers. The company finds the best suppliers and assures you of excellent quality products. Based in China, they have been helping both B2C and B2B drop shippers to source and ship genuine products. We also offer additional services like branding and customized packaging for enhanced customer experience in your business.
The company arranges factory visits for you so that you can get high quality products. If you are not interested in visiting the factor, the company can do a factory audit on your behalf.
Suggested reading:How To Find The Best China Dropshipping Suppliers?
Final Thoughts about B2B dropshipping
In B2B dropshipping, the companies sell their products to other organizations or companies.
In b2b ecommerce, the customers are more details oriented and try to get more information related to the products.
Therefore, the b2b marketing strategies seek to provide detailed and educational information, which helps the buyers in decision-making.
Want to start B2B dropshipping businesses?
Contact us! We help you find reliable suppliers and wholesale distributors, also handle product sourcing, inventory management, and order fulfillment. Your items are shipped directly to your customer.
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