Dropshipper and Reseller Ultimate Flashcards

A dropshipper wants higher margins and brand control on a winning product. The natural next step is:

Answer: Private labeling the product

Private labeling adds branding and exclusivity, allowing higher margins and customer loyalty.

Which inventory model holds NO stock but lists items as if available?

Answer: Dropshipping

Dropshipping forwards orders to a supplier who ships directly, so the seller holds no inventory.

What is a key advantage of using a fulfillment center (3PL) over pure AliExpress dropshipping?

Answer: Faster domestic shipping and consistent quality

A domestic 3PL shortens delivery times and standardizes packaging and quality control.

A high cart-abandonment rate at checkout is most often caused by:

Answer: Unexpected shipping costs or long delivery times

Surprise shipping fees and slow delivery are the leading reasons shoppers abandon carts.

Which test best identifies a profitable product before scaling ad spend?

Answer: Small-budget split tests measuring CTR and conversion

Low-budget split testing reveals demand and conversion signals before committing large spend.

What is the function of a 'tracking number' in maintaining customer trust?

Answer: It lets customers monitor shipment status

Tracking visibility reassures customers and reduces 'where is my order' support tickets.

A reseller notices a product is gated on Amazon. This means:

Answer: Approval is required to sell in that category or brand

Gating restricts certain brands or categories until the seller is approved with documentation.