Drop ship wholesalers are nothing new, but their presence and role in ecommerce is becoming widely known and appreciated by online retailers. Talk about wholesalers who ship blind! Meaning they do not broadcast that the stuff they ship to the retailer’s customers come from them. Instead, they place the retailer’s logo and invoice inside package. Don’t you love drop ship wholesalers?
How Dropshipping Works
A wholesale business thrives by supplying a retailer the goods he displays in his store and the latter earns a modest profit by selling the items according to the suggested retail price. Online selling has modified this a little bit. The product sold online is auctioned to the highest bidder. The seller places an order with the wholesaler who ships the order to the customer. The seller earns by pocketing the difference between retail price and wholesale price. As the seller, you earn a modest sum, and the more sales your online store makes, the more income you generate for your business and a wholesale business earns from volume sales.
There are several manufacturers world-wide making the possibility of selling diverse goods a potential because your online store can offer a wide array of merchandise ranging from medical supplies, furniture, foodstuff, herbal products, clothing, fashion jewelry, and much more.
If you want to venture into ecommerce, decide the concept of your online business, review the list of manufacturers of the different products you have eyed for your store, and compare price offers to help you gauge how much you can earn from selling their stuff. As for shipping fees, these should not be charged to your account.
If you have found a supplier willing to do business with you, does some background check before you finalize your deal. You have the Better Business Bureau, and if the supplier is in the USA, check the company’s record with the Federal Trade Commission. If you like what you’ve discovered, go ahead and make a deal. However, be sure you have a license to operate your online business or the Feds will run after you. You cannot risk your business by disregarding trade requirements.
Drop ship wholesalers or distributors can make or break your enterprise so be careful with your choice. Make a quick note of potential partners and compare offers. Take the time to shop around and do not go into a deal with drop ship wholesalers if you do not like their terms.