Drop Shipping Wholesalers
January 22, 2010 by admin · Leave a Comment
Drop shipping has received much attention recently online. There are over 36 million hits for the term on Google to a recent survey. Apart from the organic search results, there were dozens of ads for sites wholesaler, drop ship lists of these companies and money making courses.
What is Drop Shipping?
Drop shipping is actually a very simple concept. The best way to explain it is to compare the traditional retail environment with dropshipping idea. Suppose we want to create a physical selling flashlights. Remember that most small towns and even big cities have really not enough customers to support a store that only sells flashlights (you can insert a micro-niche product here).
Before our store opens, we’ll need hundreds if not thousands of flashlights to put on the shelves. Think about that for a minute. Consider every retail store you’ve ever shopped at. What do they all have in common? Inventory in the warehouse floor, and probably much more in store room in back. How much do you think all these torches (or whatever you want to sell) cost? Most retail stores (even small one) need to invest heavily (dozens or even hundreds of thousands of U.S. dollars) up front statement. This statement is usually purchased in bulk from a wholesaler or distributor at a discount to retail prices.
The same problem applies to online stores – you need to ship goods to your customers. Even a store that sells cheap products can easily run into tens of thousands of dollars in up front inventory costs. And that’s before the first customer places an order. Fortunately, there is a good alternative. When we sell online there are no shelves to stock. Why bother to keep anything in stock? This is where wholesalers get rid ship comes in.
How Drop Shipping Wholesalers Jobs?
A drop shipper is a common stockholder, who is also willing to send directly to your customers drop shipping wholesaler sells items at the same discounted rate to the dealer and also typically charge a small fee for handling the transfer. This fee is usually around $ 3-5. The good thing about using a drop shipper is that you do not have to stock anything. Furthermore, you do not pay for the goods until you actually sell it.