Three business models have become a big part of online retail: reselling, dropshipping, and online arbitrage. While each has its unique strategy, they all share a common, critical need: a reliable, efficient, and scalable logistics operation.

Starting an online business has never been easier, but managing all the moving parts can become complicated. If your business is about buying and selling products online, our experts at C & S Transportation can explain how third-party logistics (3PL) can help your operation grow by leaps and bounds. Since 1983, we’ve helped businesses of all sizes streamline their shipping, reduce costs, and scale their operations from a side-gig to a job creator.

What is a Reseller Definition?

A reseller sources items—often from the thrift market, discount stores, manufacturers, wholesalers, or closeout sales—to sell their own sales channels, like eBay, Amazon, or their own e-commerce site. They typically manage their own inventory. Think of it as someone who selects unique objects from one source to deliver them to customers with a high rate of demand.

What is a Dropshipper Definition?

A dropshipper acts as a middleman. They list products for sale online, but when an order is placed, they purchase the item from a third-party supplier who then ships it directly to the customer. The dropshipper never physically handles the product. Think of it as a storefront model that works more closely with product sourcing.

What is Online Arbitrage Definition?

Online arbitrage is the practice of finding and purchasing undervalued products from one online marketplace (like Walmart.com or eBay) to resell them for a higher price on a different platform (most commonly Amazon). The "arbitrage" is the price difference between the two markets. Success depends on speed and volume, with lots of movement and thin margins. Think of it like buying winter coats in Florida during summer and selling them in Minnesota before winter hits.

Understanding 3PL Logistics for Resell Businesses

C & S Transportation handle 3PL logistics that include network planning, storage for, and more for arbitrage or resell businesses. Instead of renting your own warehouse and hiring staff, our experts do it for you.

We typically store a client’s products in warehouses, track inventory, optimize shipping to customers, and utilize trucks, trains, planes, or ships. We handle busy seasons and growth spurts; clients don’t need to scramble for more space or workers. For instance, during Black Friday or Christmas rushes, we have the capacity and experience to keep things running smoothly.

Why Arbitrage Businesses Love 3PL Logistics

Running a warehouse is expensive and complicated: You need space, equipment, insurance, and staff who know what they're doing. 3PL companies already have all this figured out, and they get better shipping rates because they handle so much volume and can consolidate inventory.

Location matters, too. We have access to warehouses nationwide, so your products can be closer to customers everywhere. We also know how to handle products properly: Fragile items get handled carefully, and inventory stays in the shipping pipeline. That means fewer unhappy customers and fewer refunds hurting your profits.

The Technology Side Made Simple

We use software that talks to your online store. You can see exactly how many products you have and where they are, as orders get tracked in real-time. No more guessing whether you're about to run out of your best-selling item.

Our reports share valuable information, such as which products sell fastest, shipping costs by region, and delivery performance. That data helps clients make more intelligent decisions about what to buy and where to focus other efforts.

Partner with C & S Transportation for Superior Logistics Solutions

As a full-service 3PL, C & S Transportation offers domestic and international cargo logistics management, freight transportation, network planning, and warehouse selection services. We manage the challenges facing resellers, dropshippers, and arbitrage entrepreneurs, and can improve your bottom line. Contact us in Nicholasville, KY, for coast-to-coast service in the United States and freight abroad.