A real dropshipper is simply a certified wholesaler who offers dropshipping. Not all wholesalers offer dropshipping. In fact, it’s quite difficult to find a genuine certified wholesale product dropshipper. As a wholesale distributor, you will probably run an independently owned and operated firm that buys and sells products of which you have taken ownership. Some of the most affordable products for retail sales come from wholesalers in other countries and importing maybe your best option for getting the products you want to sell.
The Wholesale Product Dropshipping Difference
Dropshipping differs from the traditional fulfillment process in that the merchant doesn’t have to keep inventory on-hand. Instead, the vendor represents your stock of inventory. You only purchase from them when you sell an item. Dropshipping allows you to sell items without ever actually seeing or shipping the item yourself. This becomes a very easy and attractive fulfillment process for merchants. Dropshipping is great for entrepreneurs because it doesn’t demand as much as the traditional retail model. You don’t have to open a brick-and-mortar store, pay overhead, and stock products. Instead, you open an online storefront and buy wholesale from suppliers who already have products and warehouse space.
According to Fit Small Business, you can predict your income using these variables (they’re averages, so they’ll change depending on your industry and situation):
- 20% margin.
- 2% conversion rate.
You can then calculate a working estimate using this equation:
(Traffic x 0.02) x (Avg order value x 0.2) = Profit
Choose the Right Product
If there was a silver bullet product, everyone would sell it. That’s why it’s important to carefully consider what you’re going to sell. It’s always a good idea to start small, for example focusing on small goods before you scale up to sell other sports accessories. Some wholesale product dropshippers will have a minimum initial order size, which is the lowest amount you have to purchase for your first order. But that doesn’t mean their product is beyond your reach, you simply need to make a good deal. Successful dropshippers estimates that the dropshipping business with highest success rate is around 10 percent during the first year of operations.
Make Use of Local Suppliers
Dropshippers cannot get away with long delivery times anymore. Spoiled for choice, consumers will not be satisfied waiting for over a week, let alone a month for a delivery. The key for a successful dropshipping business is to work with reputed local suppliers who will ensure your orders reach on time and your customers are satisfied. With wholesale product dropshipping, you just find a vendor and dropship product source directly from a supplier. This makes it easy to test new offerings with your audience.
Patience and Persistence
Patience and persistence are not only required in dropshipping but for any business. And, if you are just starting out with dropshipping then it is a prerequisite.
It is advised by the professionals to start dropshipping from AliExpress initially if you’ve just started your business. It will help you to test the quality of the products and identifying product inspirations and usually there is no minimum order quantity required.