What is a Dropship Business?
Dropshipping, is where you setup an account with a certified wholesale supplier that offers dropshipping. You then place the images and write descriptions of the products for sale in your online store or auctions and set a retail price. Customers visit your online store or auction and purchase from YOU sending YOU the retail cost and the shipping fee you set. You then order the product from the wholesale supplier and pay the wholesale price plus shipping. You keep what is left over as profit after all applicable fees.

So easy anyone can do it! But is a dropship business right for everyone and is it worth it? Only you can answer this question, so examine the pros and cons of a drop ship business to see if it is worth it to you...

Pros of a Dropship Business
  1. You don't have to purchase upfront inventory.
  2. You don't have to store products.
  3. You don't have to buy shipping and packing materials.
  4. You don't have to ship the products.
  5. You can test many different products out to see what sells the best.
If you don't have a lot of up front money to invest in your dropship business, then Saving TIME and MONEY are the biggest pros of a dropship business. Filling a warehouse with products that you need to sell, and finding out that they won't sell, is a costly venture.

There are definitely more Pros than there are Cons in regards to a dropship business, but the Cons are big ones, so make sure to consider carefully.

Cons of a Dropship Business
  1. Wholesale prices are higher.
  2. You don't have control over your shipping.
Wholesale prices are slightly higher for dropshipping since you aren't buying in bulk quantities. The rule of thumb with wholesale is; the MORE you buy, the CHEAPER each individual item gets. So that means higher profit margins. Sometimes not having control over your shipping is a bad thing. If you sell in online auctions or on Amazon.com, then your feedback is very important to you, and you need good feedback in order for others to consider buying from you. If the supplier doesn't ship in time, if the product is backordered or the product gets "lost in the mail" are several things that you may have to contend with that could result in negative feedback.

Finding Dropshipped Wholesale Products to Sell
To get the best wholesale prices is to get the products to sell directly from a Certified 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.

Worldwide Brands Dropshipping Blog: We publish a lot of great information on our dropshipping blog. Information such as this topic "dropshp business", as well as other topics that are important to online retailers. Click the link to check it out and make sure to comment on the posts you like.