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May 12, 2021

Cross-Store Selling versus Dropshipping: What’s the difference?

As we’ve explained before, Cross-Store selling is a collaborative sales strategy between brands in which they agree to sell each other’s products without a traditional wholesaling relationship. In the case of Shopify stores, this type of partnership can be scaled by using CrossMystore, the solution for cross-store selling which automates stock synchronization and order management.

This may sound a little bit like dropshipping, another sales strategy that companies have been making use of for some time. However, there are a number of differences which make cross-store selling a far superior sales method. 

What is dropshipping?

Dropshipping is a strategy in which the retailer accepts the customers’ orders but does not actually stock the goods they sell. Instead, they transfer the orders to a supplier such as the manufacturer or a wholesaler, which is then responsible for shipping the order to the customer.

While this saves the retailer money since they don’t have to run a warehouse for the stock, they have no say over quality control and delivery times of the items they’re selling. Since they have no control over the warehouse they can’t stop a customer ordering an item that’s already out of stock, and this, combined with the risk of long order times and bad packaging, can easily lead to canceled orders and bad reviews.

If the brand acts as the supplier for the products instead of the retailer, they lose all oversight concerning how their products are marketed by the seller. On top of these risks, the profit margin of dropshipping is very slim since the retailer can only make money from the difference between the retail and wholesale price of the items they sell. All this considered, then, dropshipping can be a risky and inefficient sales strategy for DTC businesses. 

What is cross-store selling?

Cross-store selling gets around all of these risks while piling on the benefits for the brands that use it, whether they’re acting as supplier, retailer, or both. If you’re the retailer, you don’t have to worry about warehouse costs for your brand partner’s products, since they remain responsible for managing their own inventory.

Unlike dropshipping, however, there’s no need to be concerned about long delivery times or dodgy packaging, since your partner has a vested interest in making sure that they’re presenting their own inventory perfectly.

There is also no risk of over-ordering out-of-stock items, since the CrossMystore syncs all the orders, fulfillment and inventory management automatically and in real-time. You’re left completely in control with all the information and tools you need right at your fingertips.

By contrast, if you’re taking the role of supplier, not only do you retain control of your inventory and its delivery, but you’re able to pick and choose which brands you want to sell your products, ensuring that they’re being marketed the way you want them. 

The perfect way to sell more

Whether you’re acting as supplier, retailer, or both, profits are always shared between both parties so that the entire relationship remains mutually beneficial. Best of all, the entire partnership is non-contractual and transparent, meaning you’re always in control of how your products are displayed and sold and which brands you collaborate with.

If you’re dissatisfied with your partner you can leave the agreement with just a click, but if you’re working well together you can elevate your partnership to new levels of collaborative marketing just as quickly. It really is that simple!

This, then, is the key to cross-store sales relationships. Beyond a purely transactional relationship, as dropshipping is, CrossMystore elevates the partnership between brands and turns it into an all-new marketing channel from which both brands can benefit.

By collaborating with your favourite brands, you’ll increase your visibility in the audiences where it counts and opens up new opportunities for exciting co-marketing opportunities. 

All trends are showing that brand collaboration is the future of online retail. Sign up with CrossMyStore now and transform your marketing strategy!

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