In today's digital age, dropshipping has emerged as an innovative business model that allows brands to sell products without the burdens of inventory management and shipping. Dropshipping is a retail fulfillment method where brands partner with Suppliers who handle product storage, packaging, and shipment. As a dropshipper, you never have to stock or physically handle the products you sell.
How Does Dropshipping with Canal Work?
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Establish an Online Store: Create an online store on platforms like Shopify, WooCommerce, or BigCommerce. You can also integrate with Canal via API or EDI.
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Find Partnerships: Canal enables Retailer brands to connect with Suppliers that offer high quality products that will partner well with your first party products.
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Import Products: Suppliers import their product details, product images, inventory, and fulfillment times into Canal. Once a partnership is established, all of this information is seamlessly passed to your online store.
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Set Revshare: On Canal both Retailers and Suppliers have a say in each parties revshare, and this has to be agreed upon before products can be sold. Suppliers will list products on Canal at their desired MSRP while revshare (referred to as commission), shipping fees, and desired profit margin are all negotiated within the app.
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Processing Orders: When customers order from a Retailer partners website, order details will be passed directly to the Supplier partner's backend to handle packaging and shipping.
Benefits of Dropshipping:
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No Inventory Management: Avoid the hassle of storing and managing inventory.
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Wide Product Selection: Offer diverse products to cater to various customer preferences.
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Flexibility: Run your business from anywhere and on your terms.
Dropshipping is a modern, accessible way to enter e-commerce without the inventory concerns. Canal makes finding and establishing partnerships seamless, so you can focus on marketing and the customer experience. Whether you're a budding entrepreneur or an established business owner, Canal can help!
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Next up: Onboarding to Canal