Dropship and Wholesale Company
Is there a difference?
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Dropship and Wholesale Companies
Dropshipping has been around for a LONG time. It isn't something new that has been introduced to the world of wholesale and retail in the last decade. It's been around A LOT longer than that!
One of the biggest misconceptions about dropshippers, is that they ONLY offer drop shipping. This is simply not true!
What is a Dropship Company?
A dropshipping company is a genuine wholesale supplier that offers products at bulk, as well as offers a dropshipping service.
Many genuine wholesale companies do not advertise on the internet that they dropship, so many times, they can be pretty hard to locate. So, doing a search in a search engine for dropshipping will yield a lot of scams or middlemen results.
A REAL dropship and wholesale company either makes the products they are offering at wholesale prices, or they will purchase in large volume from the manufacturer, making them an authorized distributor.
It is very important that retailers work with either a manufacturer or an authorized distributor, because the wholesale prices are MUCH better! Look at it this way....
• A manufacturer makes a product and has a wholesale price assigned to it.
• An authorized distributor would purchase product from the manufacturer, paying that wholesale price. The distributor would then RAISE their wholesale prices a little bit so they can earn some profit.
• A wholesaler would purchase products from an authorized distributor, and then raise the prices AGAIN in order to make a profit on the products sold to either other wholesalers or to retailers.
So you see that prices keep rising the further down the wholesale chain you go, which means less profit for then end retailer or higher prices for the consumers.
Why does this chain even exist if the manufacturer is the best place to get great wholesale prices direct from the factory? Because not all manufacturers will sell directly to retailers! Manufacturers are concentrating on making the product, not distributing it. So many manufacturers, especially LARGE brand names, rely on their authorized distributors to sell to retailers to get the products into the market.
Be careful when looking for dropship and wholesale companies if you aren't familiar with product research. As stated above, the internet runs rampant with scams, so keep yourself and your business safe, by only working with GENUINE wholesale and dropship companies.
Finding Genuine Wholesale and Dropship Companies
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 Certified® 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.
Worldwide Brands Blog: Our blog is full of information about genuine wholesale suppliers, business advice, how to's and more. Click the link if you would like to take a look and make sure to comment on the posts you like!