What Is Supplier - DSers eCommerce Basics


A dropshipping supplier is a third-party business which sends products to customers on behalf of a retailer without having any involvement with the sales process.

What Is a Supplier

A supplier is a person or business that gives goods or services to someone else. Suppliers in a company get goods from a manufacturer and sell them to a retailer at a reasonable price, so the retailer can resell them. 

A supplier acts as a middleman between the manufacturer and the retailer in a business. This person ensures communication and that the stock is of good enough quality.

Why Are Suppliers Important

Suppliers play an important role at every stage of a product's life. In this case, the product's life cycle is the time it takes to be made and put on the market. The product life cycle can be long or short, depending on the company's size. 

So, it is essential to be loyal to the suppliers. From the following, you can see how necessary suppliers are:

  • New ideas and insights into the market

Suppliers are in direct contact with the market, so they can offer new ideas for improving the product or service. Based on what the company knows, suppliers can help tweak ideas to make them work for them. 

  • Timeliness

Customers trust you if you do what you say you'll do, and you're reliable if you show up on time and do what you say you'll do. If your backend (suppliers) deliver on time, it can help you keep the inventory turnover ratio and less industry maintenance. 

  • Being in the Game

Suppliers can help you stay ahead of competitors and keep your business competitive. They will keep you above average regarding quality, price, and how well the product works.

  • Managing Finances

Having a good number of suppliers makes it easier to keep track of money on their end. If the companies have trouble getting enough money, they help them by giving them more money.

Supplier Role

The role of a supplier is significant because retailers need high-quality materials for their goods. To ensure that the retailers get what they want, the supplier must be flexible and at ease with the relationship. Some ways a supplier can help are:

  • Fair transactions

Suppliers should give all retailers the same chance to work with them. They shouldn't turn them down because of where they live or for any other reason.

  • Laws

Every supplier must know and follow the relevant trade laws, such as child labor and protecting human rights.

  • No conflict of interest

Suppliers should try to avoid situations with different goals. Some examples are favoring family, friends, or old coworkers over other people. This rule makes it less likely that someone will be mistreated.

  • Best prices

Suppliers should promise to offer the best prices and products to get more people to work with them. This makes sure that the business will come back in the future.

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