Frequently Asked Questions
What is F&B Drop Shipping? F&B Drop Shipping is a retail real time fulfillment method where an online store usually known as the drop shipper, sells products which will be store, prepared and finished by a drop shipping provider. Drop shippers do not keep any inventory, or purchase stocks or handle any warehousing and preparation. When a customer places an order, usually though a 3rd party food delivery app like Grab, Deliveroo and Food Panda, the drop shipping provider cooks and packs the products and then ships the product directly to the customer by way of the delivery platforms. This business model allows the drop shipper to avoid paying rental, hiring workers, inventory management, warehousing costs, and shipping logistics, making it a low-risk way to start an online business.
Is F&B drop shipping profitable? Yes, but success depends heavily on advertising and promotions through Social Media Marketing. Drop Shippers need to drive traffic to their ordering page on the delivery platforms and their own website. Drop shipping is an e-commerce business. Social media marketing strategies still tops the drop shipper’s agenda.
What are the best platforms for F&B drop shipping? GrabFood and Food Panda is widely recommended due to its ease of use and integration with standard apps and POS. In addition, we create a website to take orders on whatsapp as well as apps on our integrated POS.
Do I need a lot of money to start an F&B drop shipping business? No, F&B drop shipping requires minimal upfront investment since you don’t need to pay rent, hire workers, handle stocks, buy inventory, prepare and finish the products. On average, a brick and mortar shop in a coffeeshop will cost you upwards of $40,000.00 to $45,000.00 on the low side of things. With F&B Drop Shipping, you can get started with $15,000.00. What does this pay for? $10,000.00 Set Up Fee $5,000.00 Security deposit (fully refundable after a minimum of 12 months commitment).
Can I give instructions or go to the shop and help the drop shipping provider? No you may not. The drop shipping provider does not work for you. They are contracted to carry out tasks by the company. The drop shipper deals directly with the company, while the drop shipping provider answers to the company.
Is drop shipping legal? Yes, but drop shippers must comply with business regulations and consumer protection laws. For F&B dropshipping services, the drop shipping provider must have a valid food license issued by SFA. All our drop shipping providers have been vetted and confirmed to have valid SFA licenses.
How much can I earn from dropshipping? In our current Food Court drop Shipping model, drop shippers are paid a profit payout of $1,000 per month after deducting marketing fees, food and packaging costs and other business costs. Labour, rental, production and manning of the business have already been taken care off. The company only needs to ensure great advertising and promotions to drive traffic to their ordering page in the delivery apps.
What happens if a drop shipping vendor decides it does not want to work with the company any longer? The drop shipping provider have signed a contract with the company, however, circumstances may changed. According to the contract they will be penalised but in this event, the vendor will be replaced with another.
Can I dropship internationally? No, this service is only for local businesses for both drop shippers and drop shipping providers.
How long do I need to commit to a contract? A drop shipper needs to commit for a period of 12 months. If a drop shipper decides to terminate the contract after 12 months, the security deposit will be fully refunded to the drop shipper. However, if the drop shipper wants to terminate the contract before the end of the 12 month commitment, the security deposit will be forfeited as a penalty.
What happens after the 12 month commitment period? The drop shipper will be asked if he/she will want to continue with the arrangement. If yes, a renewal contract will be drawn up as per the original terms of the first contract. However, for subsequent renewal of contract after the first one, the company reserves the right to amend the terms and conditions of all subsequent renewals.