Stepping beyond "just-in-time" inventory with a trend growing in the independent webstore market. The buzz words: "Dropshipping," and "Remote Reselling." Unleashing another level of business flexibility, resellers, no longer required to purchase large quantities in order to sell products, simply negotiate contracts with their suppliers to handle the inventory management for them. This networked strategy brings the customer (sale) one step closer to completing the supply chain, as they are connected to the supplier through the remote reselling/dropshipping process. For such orders, and for custom products, we inform our customers that deliveries can take several extra days to arrive.
How does it work? When a reseller sells a supplier's product, they forward that sales invoice to the supplier to fulfill the shipping request. As a standard procedure, generally after receiving a reseller invoice, and once products are shipped (hopefully on the same or next business day), then the reseller secures their commission earnings and pays the rest back to the supplier. Contract negotiation topics include: 1) commission percentage, 2) potential order processing/shipping delays, 3) returns policy (if allowed), 4) lifetime of contract, and 5) procedures for updating/maintaining store products.
At Ascendents.net, Inc., it is important that we actually can communicate with the people and businesses in our supplier network. Our reputation, income, and ability to grow business depends on seamless support/commitment from our dropshippers. Read more about "Dropshipping" at BigCommerce and ShopFactory.