May 10th, 2008

If you run a reselling business on the web, you know that a dropshipping wholesaler you work with is largely responsible for your enterprise’s success or failure. Both great benefits and great risks are involved in the business you do with a dropship company. But for many small resell businesses, this is the only opportunity to boost their revenues without much effort and money investment.

Pros of a Dropshipping Wholesaler

1. You don’t have to invest in inventory; this saves you a ton of money and additional headache in case the goods are not selling well.

2. You need not pay for the storage of the products. There is absolutely no need to have a holding area for the merchandises.

3. If you want to sell more than one product, by all means do so. You can switch between products and discard poor sellers anytime you wish.

4. You can offer a wide product mix with many similar or complementing merchandises. For example, if you are selling cell phone batteries, you may consider selling cell phone covers as well.

5. You have no leftover items, which you would need to store and find ways to get rid of, compromising on the price.

6. You would not have to struggle with negative cash flow. Since the buyer would have to pay for his or her purchase first, you already have the money in hand to pay the dropshipping wholesaler. The difference is your profit.

7. You are spared of the trouble to pack, handle and ship the items. You save money as well, even though your dropshipping wholesaler charges you for the delivery. But in case you handled the delivery of the product yourself, you would have spent much more, leaving little room for profit.

8. It used to be tougher being a reseller since you need to place huge minimum orders in order to enjoy wholesale prices. In today’s market, there are now many dropship suppliers that would offer wholesale prices even without minimum orders.

As usual, all businesses carry a certain level of risks.

1. Since you are not in charged of the shipping, you have no control over how soon the delivery can be. In fact, there is nothing you can do even if there are delays along the way.

2. You are held responsible for the item’s lousy quality, shipping damages, poor packaging, slow delivery and other problems that may occur thanks to a poorly chosen dropshipping wholesaler. All this affects your market reputation and can kill your business in no time, especially if you operate on such platforms as eBay, where the customer’s feedback is vital.

3. There is a potential risk of you not knowing that a product is completely out of stock. You could be still offering the product for sale and find that there is no way you can ever deliver the goods. Either you source for it from another supplier or you may have to refund your customers and suffer a dent in your reputation.

From we have learnt so far, it is important for anyone who wishes to resell products to work with a reliable dropshipping wholesaler. Finding the cheapest guy is not the right way to start. It is equally important to find out more about the service rendered as well as whether the company has a good reputation among resellers like you.

Discover more useful tips on finding a good dropshipping wholesaler from my income blog. Also find out which supplier is offering quality service and great products at huge bargains.

About the Author:

Discover how you can grab deep wholesale discounts from the best dropship wholesale distributors. For more reading, see this on what makes good dropship wholesale distributors.

Posted in Make Money |

Comments

Leave a Reply

You must be logged in to post a comment.