​What is B2B dropshipping?

B2B dropshipping is a business model in which a B2B seller sells products located at one or more suppliers or other third parties. It means the B2B seller doesn't keep the products or manage the warehouse and logistics but sells directly from the supplier's place, acting as an intermediary between the suppliers (manufactorer, vendor, wholesaler) and the end buyer. ​

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All the logistics and warehouse controls are on the side of the supplier (vendor, manufactorer, wholesalers. The B2B seller sells the products and is responsible for the website or marketplace, client communication, all the paperwork, and orders. 

 

This model helps all sides win: the B2B seller expands the product catalog and gets revenue without inventory management, the supplier expands their client base quickly, with no extra marketing and management efforts, and the end B2B buyer gets a high-quality product straight from the initial source while receiving a great buying experience. 

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The B2B dropshipping flow.

The main idea of dropshipping is to sell products to B2B buyers straight from the B2B seller store. This can be a B2B webshop or for example be a PunchOut Catalog. The dropship approach works well for B2B businesses because it allows B2B sellers to ship huge packages to their B2B customers and get a bigger revenue compared to B2C dropshipping. The most important part is finding a reliable vendors, manufactorers, and wholesaler with ready to supply goods. Once this is done, the flow will be like:

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1. Multi-vendor product catalog creation.

2. B2B webshop creation

3. B2B e-Procurement sales creation

4. Receiving and processing orders. 

5. Billing process

6. Customer support and communication​​​​​​