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Wholesale Dropship - Is it Profitable?
There's a lot of buzz online about using wholesale dropship suppliers to start a profitable online business. Yes, it can be done, but there are several things that most people don't understand about this method that need to be cleared up, if your business is actually going to BE profitable.
Understanding Wholesale Dropshipping
  1. Understanding Dropshipping
    The term wholesale dropship is not new. It didn't just pop up with the internet. Wholesale dropship suppliers have been around for well over a hundred years, and in some form or fashion even for thousands of years. Dropshipping is where you don't have minimum order requirements and have to purchase in quantities, stock and ship the products.
     
  2. The Wholesale Suppliers Role in a Dropshipment Arrangement
    The concept that a wholesale company will send products directly to a customer location from their warehouse, bypassing the retailer, allows the retailer to avoid handling products. That's a good thing. You, as the retailer, don't have to spend time and money to re-package wholesale products and get them out to your customers. Your customer gets the package faster, and that makes THEM happy.

    The wholesale dropship supplier has some extra work to do in this scenario, They have to break open large cartons of products, pick ONE product out for you, and package and ship it to YOUR customer for you.

    Wholesalers are not used to working that way. Their business is mainly taking in very large shipments of products, breaking them into slightly smaller shipments of products, and sending them out to retail stores. They are not really in the business to send out just ONE product, directly to someone else's CUSTOMER. So, it's extra work for them, and costs them money. Many wholesalers are still willing to do it, but by no means is EVERY wholesale supplier willing to become a wholesale dropship supplier.

  3. When you find a Wholesale Drop Ship Supplier
    When you do find legitimate wholesale suppliers that are willing to drop ship for you, keep the following things mind:

    • You're going to pay a slightly higher wholesale price for a single item to be delivered to your customer from a wholesale dropship supplier.
    • Because you pay a slightly higher price, it's a little tougher to compete in your product market.

    There is a good trade off though. Even though you pay a slightly higher wholesale price, you don't have to buy a bunch of products in bulk up front, and hope you sell them. So the real advantage of using a wholesale drop ship supplier is in getting started at a low cost, and TESTING different products without a lot of expense.
      
  4. Your Business Grows
    Once you find products from a wholesale dropship supplier that works for you, it's time to start buying in bulk, and shipping them yourself. You get better prices from the supplier that way, and your retail price can come down, or you can leave it the same to increase your profit margin. But you get more flexibility in your retail prices.
So use a wholesale drop ship supplier for getting started at a low price, AND for product TESTING, but realize that drop shipping is not a permanent solution. It's a step along the way to ordering and stocking products in bulk and becoming a successful online retailer.
Finding Wholesale Dropship Products to Sell
The ONLY way to get true wholesale prices is to get the product directly from a Certified Product Wholesaler. That is why we have spent years visiting tradeshows, visiting wholesalers and finding genuine wholesale suppliers who will work with new online sellers. It's not easy, but after over a decade we have collected the internet's largest, most comprehensive Directory of Certified Wholesalers you can find anywhere...and we add new WBI Certified™ Wholesalers daily!

If you want to try to find Certified Wholesalers on your own, be sure to visit our Scam Watch page for tips on how to identify the current online wholesale product scams.


You may also be interested in:

The Best Wholesale Products Come from WBI Certifiedtm Wholesalers: Take a quick look at how we locate genuine certified wholesalers for online sellers who work from home.

Wholesale Tips Videos: These Free videos, hosted by our CEO Chris Malta, covers the top wholesale questions asked by new online sellers interested in working with wholesale distributors. Simply click the link if you would like to watch them now on our site.

Tips for Finding and Working with Wholesalers: Click the link to read a great article on our site about locating genuine wholesale suppliers and how to properly work with them.








 
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