Dropshipper and Reseller Ultimate Test 1

Question 1

Reseller is a person who buys products from suppliers or suppliers of goods, then sells them at a higher price

Accepted Answer

Reseller

Answer

The provided definition accurately describes a reseller. A reseller purchases inventory directly from a supplier, takes ownership of these goods, and then sells them to end consumers, typically at a markup to generate profit. This business model requires managing inventory, unlike dropshipping.

Question 2

The following are reasons why you should start a reseller business, except

Accepted Answer

Requires a very large capital.

Answer

Reselling typically involves purchasing and holding inventory upfront, which necessitates a significant capital investment. Therefore, 'Requires a very large capital' is a disadvantage or a barrier to entry for many, making it the correct answer as a reason *not* to start a reseller business, rather than a benefit.

Question 3

How many types of competitors are there?

Accepted Answer

2 types

Answer

In business strategy, competitors are commonly categorized into two main types: direct and indirect. Direct competitors offer similar products or services to the same target market, while indirect competitors offer different products or services that fulfill the same underlying customer need or desire.

Question 4

What does SWOT stand for?

Accepted Answer

Strength, Weakness, Opportunity, Threat

Answer

SWOT analysis is a widely used strategic planning framework. It helps businesses identify their internal Strengths and Weaknesses, as well as external Opportunities and Threats, to inform strategic decision-making and competitive positioning.

Question 5

Sales schemes by stocking products and reselling them to consumers with the operational process being handled by resellers are called

Accepted Answer

Stockist

Answer

A stockist is a type of reseller who not only buys and resells products but also maintains a physical inventory of those goods. They are responsible for managing this stock and handling the operational processes involved in selling directly to consumers, differentiating them from dropshippers who don't hold inventory.

Dropshipping Practice Test

Dropshipping Practice Test

Dropshipper and Reseller Ultimate Test 1