Going dropshipping, going bannanas.

The initiative of having a dropshipping relations came from me, but seemed to be fully embraced by some suppliers and have the blessing of his superiors at the time we correesponded.

We both knew the chalenges of starting up such a project and both accepted our part of effort.

Shipping costs might sightly vary in time and from country to country in the same region, but if say we take the most expensive China mail cheap price for that region and raise it by 30% that should cover us for at least one year in the region, North America for example, so USA, Canada and Mexico in one strike are covered.  And grouping them on regions like that might help reduce the number of price tags to a dozen or similar.

The problem of dropshipping companies is exactly this, they become retail suppliers to direct buyers, by using some other sellers for their own market, like a marriage, so they must do some policy changes in house to meet the said market that belongs to other sellers.

For a seller is the same, no personal warehouse, no stock no inventory, that helps starting up when you have no capitals, but you have a market that buys, alas you will have the downside of  many suppliers shiping on your behalf, many times one buyer might be supplied for one single buy by 3 or 5 different suppliers, so the back office management of purchasing redistribution is a nightmare.  

Example, one buyer buys a 3D printer in 9 axis with uninteruptable power supply for 2 Kwh for 24 hours (to keep it simple)  in reality it buys from me the 9 axis mechanisms, from you the UPS inverter, the batteries, from my Turkish supplier the Aluminium profiles, from my Taiwan supplier the motherboard, from my French supplier the software form my Chinese supplier the closed loop stepper drivers, from my US supplier the Thin Client, form my UK supplier the Ruby nozzles, and so on, so while my one client places one order, I have to redistribute said order to 20 other suppliers so I can sell my 9 axis system in the bundle.

Since we have no cash to make our own stocks for far cheaper than we will be forced to buy in dropshipping (and make less profit because of this) the capitals situation is forcing us up this street for now.  In order to sell our main in house product we have to help the final client buy everything else in one stop shop even if that means more work for us, for less profit per operation.

If I would have the money to start my own centralised warehouse stocking systems around the world I would not need to partner with dropshipping suppliers in the first place, and instead of choosing to make smaller margin working with them I could go direct with CATL, LG Energy Solutions or Panasonic for batteries and so on... 

So that is why I went for the dropshipping model, no money to make my own stocks.

My website is up and running in Beta tests for 3 months now, anybody can buy from me and I deliver, just click on the text here anywhere and you are in the shop. 

I am now integrating dropshipping into my platform to help me sell more, once this is up and running I shall hire managers to hadle this for me and move onto my next level. 

I am not a dropshipping guru, I do it for necessity.

I am a technology developper and researcher, and that is what I sell to the end user, full access to tomorow technologies today, at cheap prices, as opposite to large corporations that ask millions for similar tech they develloped. 

I democratise technology for the masses.