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ecommerce business model question

by rathinp2009
2 replies
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Hello,

I am curious to know how the big players able to list almost all the products in all niche in their websites?. For example : Amazon, Qoo10.sg, lazada.sg and some established websites. is it they have their own warehouse and buy wholesale or through their seller platforms they list in their websites or dropship or mix all of these?.

I am new to ecommerce , which model should I go for to begin with ?.

Thanks,
Rathinp
#business #ecommerce #model #question
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  • Profile picture of the author dave_hermansen
    I have no clue who the other two are but Amazon warehouses some products, dropships some products directly from manufacturers/distributors and, of course, lists products from all sorts of other websites where they make 12-20% commission when you buy through Amazon.

    Other major brands like Home Depot, Walmart, Target, Best Buy, etc. warehouse a very small percentage of the things you see on their sites - the same things you can go to their actual stores and buy. The vast majority of what you see on their websites is not available in their stores because they do not warehouse those products. They dropship them directly from manufacturers/distributors.
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  • Profile picture of the author provenbusinessmodels
    We don't recommend dropshipping because of its risks, but as long as you know what you are doing, you definitely can drop ship.

    Again, anyone can drop ship and Amazon and other marketplaces can too, but I am not sure whether they are doing it or.

    Please, make sure you set up a good contract before you start dropshipping with your suppliers and at least, don't drop ship on Amazon (or accept the risks that are involved).

    Again It comes to the communication and a contract you have with your supplier.'
    Amazon is little difficult especially when it comes to dropshipping on the platform.
    I am a drop shipper too, but I understand that I have to be very curious when doing it on Amazon.
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