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Tuesday, January 29, 2008

Dropshipping Wholesaler – What Potential Resellers Must Know

Perhaps you are considering reselling products on online auctions to supplement your home income. Then you need to know that a dropshipping wholesaler is probably the partner you need for your business. It can make or break the business so consider which dropship company you are going to work with carefully. For small time reselling businesses, it is even more critical to their survival.






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There are many advantages in working with a dropshipping wholesaler.

1. You need not spend any time and money on beefing up your inventory. This is a pain to many manufacturers as some products are lemons. They do not sell well at all and this means losses.

2. Proper storage and warehousing facilities are not required. In fact, there is no physical contact between you and the products you are selling.

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 always offer a wide range of products. The online auctions like eBay are your shop front and it is relatively simple to set up a whole selection of products to sell.

5. You do not have to hold any surpluses. Since you do not have any inventory at all, you would not incur any losses like the manufacturers who may have to stomach losses whenever products become obsolete or expire.

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. The dropshipping wholesaler also handles all the packaging and shipping of the merchandise. In this way, you not only save money, you also save time. Leave it to the experts to handle the shipping. It is also cheaper for them to do so.

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.

Naturally, when you run any business, there are potential risks you have to bear.

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. Should you choose to partner with a lousy dropshipping wholesaler, you can expect major hiccups along the way. Late delivery, poor quality goods, and in some cases, fakes are some of the common problems resellers complain about when dealing with shady companies. This can kill your business online since the reputation of your reselling business depends a lot on your customer’s feedback about you in the auctions such as eBay.

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.

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2 Comments:

At February 6, 2008 at 9:51 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

 
At August 19, 2009 at 12:14 AM , Blogger MJG said...

Hey, great article. I’ve been using wholesalers a lot recently. As a matter of fact, I started compiling my wholesale contacts that I use to resell on eBay and through my retail store in NYC and now I’m selling those contact lists. Check out my site at: http://www.MyWholesaleLists.com

Thanks for the blogpost.

Best,
Mike

 

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