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Thursday, March 15, 2007

Dropship Wholesale Distributors | Top Tips

Dropship Wholesale Distributors – Top Tips

Dropship wholesale distributors are the right people you should look for if you are thinking of selling some merchandise on internet auctions such as Ebay or Yahoo Auctions. Dropshipping or wholesale business is big business and there are already many folks involved in the business, so competition can be strife. By using a dropshipper, it means that you do not need to hold the physical product, ie no inventory. Your task is to market the product and accept payments. Once the payment is completed, you would inform the dropshipper who would take care of the shipping and delivery of goods to your customer. You pay the dropshipper a wholesale price, and pocket the difference between the wholesale cost and the selling price you charged.

Here are some dropship wholesale distributor tips that would help you in your business.

Dropship Wholesale Distributor Tip 1 – Use Wholesale Distributor Directories

It is not easy to find honest and cheap wholesale distributors online. Unlike a physical store where you can meet face to face with the distributor and see the ware you are buying, all you see are pictures of the merchandise. Fortunately, there are several online sites that offer comprehensive and detailed wholesale distributor directories. These sites would screen the wholesale distributors to ensure that only those that deliver excellent service and goods are included. You can then make direct contact with these wholesalers to negotiate your purchases.

Dropship Wholesale Distributor Tip 2 – Be Careful of Wholesale Brokers

These are brokers or middlemen between you, a reseller and the wholesaler. They essentially masquerade as the wholesaler themselves and present you with the catalogues of merchandise. Very often, the prices you see are marked up and you end up paying higher prices for goods which could be bought cheaply from the wholesaler. In a certain sense, these wholesale middlemen are resellers or Tier-2 wholesalers. Avoid going to them as this means lower profit margins and loss of competitive edge over your competitors.

Dropship Wholesale Distributor Tip 3 – Common Wholesale Prices

When you find a dropshipping company that does wholesale business, look at the price difference of their products as compared to the retail price they can fetch in the market. A good gauge would be about 15% to 30% discount off the retail price. If you do find such a wholesale company, it is reasonable to deal with them.

Dropship Wholesale Distributor Tip 4 – Other Sources of Wholesale Goods

Read the newspapers especially the classified advertisements section and look for private auctions, garage sales, year-end sales, wholesale/warehouse bargains from companies facing bankruptcy. You would be able to find really cheap merchandise, sometimes as much as 50% off the market rate. The trouble is you have to take care of the inventory and shipping.

Dropship Wholesale Distributor Tip 5 – Free Account with Dropshipping Company

Whether you are reselling as an individual or setting up a company to do so, registration with dropshipping companies should always be free. This is the market norm. Unscrupulous dropshipping companies may try to charge you a fee, so if you are not comfortable with that idea, skip it and go to another company.

Dropship Wholesale Distributor Tip 6 – Open Multiple Wholesale Distributor Accounts

The trick about getting the best deals is to open account with many wholesale distributors. This way, you can be sure that you are kept abreast with the latest prices of goods. You would also respond faster to meet market demands with cheaper products than your competitors.

Dropship Wholesale Distributor Tip 7 – Minimum Order Size

Though the minimum order size requirement for dropshipping companies varies, the majority would accept practically any order size. However, you have to be realistic that for cheaper items, they may set a minimum order in order for the sale to be profitable for them. Another thing to take note is that it is usually possible to get deeper discounts if you place bulk orders.

Read the next exciting post on how to find a good dropship wholesale distributor.

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1 Comments:

At February 6, 2008 at 9:52 AM , Blogger davekind said...

I used reviews to find the best programs that include powerseller trading asistant and wholesalers on ebay and i make over a 1k a month profit cash and this is my third month and i work about 25 hours week...check out these reviews http://ebaydropshippingwholesalersreview.blogspot.com/ and http://www.squidoo.com/EbayDropShippingWholesaler GOOD LUCK

 

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