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Introducing Chip Dropship

What is Dropship?

Dropship is when a retailer takes an order from a customer and passes that order to a supplier who ships the ordered product directly to the customer. 

This process is very attractive to sellers because they don’t have to buy inventory, store it, nor manage shipping. However, this also means that a supplier must have the capacity to ship many small orders instead of few large orders. 

Print-on-demand vs. Dropship

Print-on-demand (POD) is a service where sellers can offer a wide range of best-selling products on their ecommerce store. POD consists of printing custom products as soon as sellers receive an order, and similar to Dropship, sellers don’t deal with inventory or order fulfillment. 

In contrast with Dropship, POD sellers purchase an item from a third party and ship it directly to the customer. Alternatively, Dropship sellers can offer various products from marketplaces like AliExpress as long as they have the option available to ship to the United States.

Dropship terminology 

We’ve already defined Dropship, but to be the best seller, get familiar with the following Dropship terms.

  • Cost – The value that the supplier charges a retailer (or seller) for a variant.
  • Customer – The person who is buying the product for their own use.
  • Dropship – The process by which a retailer takes an order from a customer and passes that order to a supplier who ships the ordered product directly to the customer.
  • Listing – The process of linking a product (and its variants) to a store. Also, the link itself, which connects a product (and its variants) to a store.
  • Option – A unique attribute that is associated with a property which creates different variants of a product.
  • Price – The value that a retailer (or seller) charges a customer for a variant.
  • Product – A group of variants that share the same characteristics. 
  • Property – The attribute of a product that has different options which make up the different variants. 
  • Retailer – A company that sells products to customers. Retailers may sell their own products to customers, but more often sell products from suppliers.
  • Seller – A person who acts as a retailer, buying from suppliers and selling to customers. Nearly synonymous with Retailer.
  • Supplier – A company that makes, distributes, and/or sells products. Suppliers can sell to distributors who then sell to retailers (or sellers). Suppliers can also sell directly to customers.
  • Variant – A version of a product.

Product vs. Variant

These two can be easily confused, so let’s dive a little bit more into what they are. A product is not a real or a physical thing - it’s a way to group variants. On the other hand, a variant is a real physical thing—each variant is an entirely different version of a product.

For example, a product is a t-shirt, and a variant of this product could be a large black t-shirt or a small white t-shirt.

Property vs. Options

We use the term property to denote attributes of a product that are different between variants. So, talking about a t-shirt, the properties are color and size. Finally, we use the term option to denote the various choices within a property. 

The property color of a t-shirt can have options like red, blue, green, or any other color, as well as the options of small, medium, and large as choice within its size property.

Product vs. Variant chart

Combine choices within these options, and you have a new variant that can be bought and sold, like the large black t-shirt or small white t-shirt.

There can be any number of properties and variants for a given product. Remember that a unique variant will be a combination of these choices.

Chip’s Dropship

Much like Chip’s print-on-demand services, Dropship is an all-in-one ecommerce service with included customer support, payment processing, and fulfillment and shipping. Dropship is becoming more and more feasible as the premier sustainable business model because sellers have more products and suppliers to choose from.

In the past, there has been little incentive for suppliers to agree to participate in Dropship programs. But, thanks to significant tech developments across ecommerce, new technologies have made it possible to perform dropshipping at scale.

What sets Chip’s Dropship apart from its competitors is its payout speed. One of the biggest problems dropship sellers face is the long and slow payout process, taking as long as two months for sellers to receive their full payout. With Chip, Dropship payouts happen in just 24 hours.

As of today, dropshipping means big business for entrepreneurs, making billions of dollars annually. As more and more suppliers have their own websites and sell directly to customers, Dropship will continue to be a feasible business model.

New opportunities

Target a popular niche, find the most trending products, choose a supplier, and let Chip Dropship take care of the rest! Offer the best product selection to your potential customers and make sure they discover you through eye-catching Facebook ads.

The dropship market won’t become saturated anytime soon as new markets appear every day! So, gain more market share by striking before your competitors. Diversify your product selection and experiment with no risk. 

Dropship Custom Domain Graphics Library

Dropship sellers, elevate your custom domain with ready-to-use banner images, collections images, and logos. Turn your business into a professionally designed online store with different styles to suit your preferences. Check out our Dropship Custom Domain Graphics Library to download the graphics and upgrade your custom domain.

Get started with Chip Dropship

Are you ready to get started? Login to your Chip account and click on our new Dropship navigation tab. Start exploring our tools and features and become a Dropship seller!


Learn more about Chip Dropship

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