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Outsourced Dropshipping service for suppliers, distributors, wholesalers
Everything you need to know about Webshippy dropshipping as a supplier
Everything you need to know about Webshippy dropshipping as a supplier
Ferenc Horvath avatar
Written by Ferenc Horvath
Updated over a week ago

If you're a manufacturer, distributor or wholesaler, uploading to the Webshippy Marketplace is a great way to expand your sales channels and increase your turnover. Below is a summary of how the system works and its main features.

How does Webshippy's dropshipping service work?

The Marketplace catalogue already contains over tens of thousands of products in many categories that anyone can sell from their online store. You need to upload your products to this catalogue so that hundreds of online shops can display them on their own websites. YYour products will only be packaged and dispatched if they have been pre-paid by the selling online store, so we will always account to you for the proceeds of the products sold in a timely manner.

What to do if you want to join

As a condition of using the service, you need to register with Webshippy and then accept our Terms and Conditions. Then upload your products to the Marketplace product catalogue: enter the wholesale price, suggested retail price, VAT content, categorise and upload images and descriptions of your products.

Once you are done uploading your products, contact us and we will coordinate the quantity of stock, their availability and the frequency of delivery to our warehouse. This is because all products/orders sold from the Marketplace catalogue are dispatched to customers from Webshippy's central warehouse.

For more detailed information, please read this article:

What does the process look like

Once you've gone through the previous steps, you can start working with us, whereby online stores can display your products in their own selection and take orders for these products.

When a webshop orders your product, the webshop will pre-pay for the ordered product via credit card in the Webshippy interface (credit card payment amounts are first received by Webshippy). This ensures that the ownership of the product is transferred from you to the webshop and the order is shipped on behalf of the webshop.

Webshippy's system will notify you via email of products ordered and paid for by the selling webstores in a daily transaction notification email.

There are two possible outcomes: either your product is in Webshippy's warehouse, or you ship it to us within 48 hours. As soon as the products are in stock in our warehouse, Webshippy will assemble, package and send the parcel to the customer on behalf of the webshop.

You don't have to do anything while the transaction is taking place, because it is handled by the system. Afterwards, however, you have to issue a wholesale invoice to the online store (see below for how to do this), and we will invoice you weekly for the amounts paid for your products (transactions for Marketplace products sold since the previous period).

How much does dropshipping cost?

There is no subscription fee, monthly fee, system usage fee or connection fee for the dropshipping service.

As a supplier, Webshippy will charge a commission on the wholesale price you set. The amount of the Wholesale Price plus the commission will be the purchase price of the webshippers, the so-called Catalogue Price. The webshippers will buy your products at this price and we will show you this amount in your weekly statement.

The commission rate may vary by product category, you can keep track of the exact amount of the current commission for your products in the list of your products listed on the Marketplace in the Webshippy admin interface. You can also find the current commission rates per product category by clicking on the link below:

Because this commission is always built into the product's Catalog price and is actually paid by the Dropshippers (i.e. the online stores selling your products), it's no cost to you. However, when setting the Wholesale price, you need to take into account that the Catalogue price plus the commission should remain sympathetic to the selling public.

The financial settlement process for the sale of Marketplace products

On orders received, the online stores will pay the catalogue price of the products ordered, for which you will issue an invoice to the online store (you will also need to include the catalogue price of the products)

We will credit your account with the catalogue price you specify (wholesale price plus commission). The commission will appear as Dropshipping commission in the settlement between us as an item payable to Webshippy. As this commission is always built into the catalogue price of the product and is actually paid by the Dropshippers, it will not be charged to you.

Example:

You set the wholesale price of a given product at 1000 HUF.

The catalogue price of this product, plus the Webshippy commission, will be 1070.- HUF.

The webshop will pay 1070.- HUF for this product on the Webshippy page.

For the transaction, you will issue an invoice for HUF 1070.- to the selling webshop, and we will transfer HUF 1070.- to you at the weekly settlement and issue an invoice for the commission of HUF 70.-.

(The example shows net prices excluding VAT)

Where can I see my products and transactions

You can keep track of your products and transactions in the Webshippy admin interface under Marketplace.

You can upload your products in the "Product management" - "Products" menu.

You can turn your products on and off for Marketplace sales in the "Listing in Catalog" section of Marketplace. If you are missing some data for the sale, you can also fill it in here.

Sellers will only see products in the catalogue that are in active status and for which there is available stock specified.

And you can track the transactions of your products purchased from online stores in the "Transactions" section of the Marketplace.

How to supply stock for sales

There are two ways to ensure product stock levels.

Instant rotation-stock supply to Webshippy's warehouse

In this case, deliver a minimum quantity to Webshippy's warehouse so that products are immediately available for the webshippy stores selling them.

This stocking method ensures orders are fulfilled as quickly as possible, which can also make your products more attractive.

To make a delivery, create a delivery order in Webshippy and then deliver the goods to our warehouse on the day you choose.

Once you have received the products in stock, you can keep track of your available product stock in Webshippy (under Product Management).

Providing external stock from your own warehouse.

As a premium customer, you have the option to secure your stock from your own warehouse. This is subject to strict conditions to ensure that the supply of stock is stable and continuous, and you must ensure that the stock information in our system always shows the current stock available (e.g. via API connection). If you would like to take advantage of this option, please contact us.

In this case, your order will be automatically recorded by our system as soon as an order is placed for your product - you will also be notified by email on a daily basis. Afterwards, you must send the products and quantities recorded in the system for delivery to our warehouse within 2 days.

What costs can I incur?

If your products are selling well, you will not incur any logistical costs as a Marketplace supplier.

Two deliveries per week free of charge, provided the quantity delivered does not exceed 1,000 items per occasion.

Webshippy does not automatically charge a fee for product storage, so if you receive enough orders for your products, you will never have to pay for this. However, if you supply us with an unreasonably high stock level, which can last for several months, and your product rotation rate is low, you will be charged a standby fee. The standby fee is determined by the shelf and pallet space occupied by your products.

For a detailed description of our service charges, please click here:

So, to keep your costs down, you need to get as many webshippers as possible to list your products. For some tips, read our blog post below:

How to send your invoice to webstores

The invoices you have issued can be downloaded from Webshippy by the online shops selling your products. There are two ways to upload your invoices:

Automatically

Several billing programs can be integrated with your Webshippy system, so the billing process can be automated. If you are using Invoice.com or Billingo, you can integrate these billing providers with the system so that invoices are automatically generated for each transaction.

Manually

If you do not have a subscription to either Invoice.com or Billingo, you will need to upload invoices in pdf format for the transactions you are making.

What VAT content should I invoice with?

Check with your accountant about the VAT content of invoices for the sale of your products. The VAT rates applied by accounting rules are not affected by dropshipping.

If your business is exempt from VAT, this must be indicated on the invoice. In such cases, the net and gross wholesale prices of the products will be the same. The invoiced price you issue will be the net purchase price of the online shop, so when determining your estimated retail price, please note that the price you invoice will be charged VAT.

What can I do to improve my sale?

To help more online stores add your products to their listings, we encourage you to read our blog post below:

A well-defined wholesale price can have a significant impact on the saleability of your products, as a low product or small margin will not be attractive to online stores.

You can also help by offering a periodic discount to sellers at the start.

More information about Webshippy dropshipping is available on our Help Center and on our website.

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