In the comments under my previous posts, people asked me to explain how the sex shop works from a technical and operational perspective. Here’s how it works…
There is a sex toy supplier with its own warehouse and products in stock. The company presumably purchases large quantities of products from different brands and stores them in its warehouse. The supplier has a website where I am registered as a retailer. I have my own account, an admin panel, and access to wholesale prices that are only available and visible to retailers.
Then there is my online store. I upload the supplier’s price lists to it and apply a markup of approximately 90% to all products. This is the minimum markup and one of the supplier’s terms of cooperation: I can charge more, but not less.
We operate under a dropshipping model. When an order arrives in my admin panel, I place the same order through the supplier’s system and pay the wholesale price using the balance I previously deposited into my account. I also create a shipping label with Nova Poshta. After receiving the order and the end customer’s details, the supplier picks and packs the product from its warehouse and ships it directly to the customer under my name and using my business details.
When the parcel reaches the post office, the customer pays for it. One or two days later, I can collect the money from my local Nova Poshta branch. I then use those funds to top up my supplier account and place new orders. If a customer pays online, the payment is transferred to my bank card through a payment processor and then deposited into the supplier’s account.
If the customer refuses the order, the product is returned to the supplier. I have to cover the shipping costs in both directions, while the cost of the product itself is credited back to my supplier account.
That’s the short and simple version 🙂
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