Much like retail arbitrage, there is a low risk of getting involved with the dropshipping wholesalers business model. You don’t need a lot of upfront money to get started dropshipping at all. Instead of having to house your own inventory, you only purchase a product from dropship product source when a customer places an order for that product.
Using dropshipping wholesalers comes with additional benefits, such as access to suppliers distributed over a larger geographical area. Many products manufacturers offer wholesale services themselves, so with the help of the internet you can get into touch with them and buy directly from the factory, without even turning to an intermediary, such as a wholesaler, further increasing your savings.
Every time you need to touch a product in the supply chain, there is a cost associated. Ocean freight services, Port Operations, LTL and FTL Services, and warehouse employees all get added into the Cost of Goods Sold. The biggest difference between dropshipping and the standard retail model is that in drop shipping, the selling merchant doesn’t stock his own inventory.
The entire process of order fulfillment under the Dropshipping business model involves Manufacturers, the Wholesalers, and the Retailers. They individually play their roles in the procurement of supplies and the shipping of the ordered products. There is no better time to start a dropshipping business and look for dropship retailers.
As an owner of dropshipping wholesaler business, you will be nicely placed to dominate the niche you choose to get involved in. In traditional business models, the majority of the costs are related to setting up and running the retail operations, such as purchasing inventory. A dropshipping business can be run from just about anywhere with an internet connection. Dropshipping can be very profitable if you hit the right market and is fully scalable, so you can build a business of whatever size you want. The start-up costs for this business model are almost non-existent, and the business can be operated from anywhere in the world you have a computer and an Internet connection.
Dropshipping essentially means instead of buying inventory you display products – which are housed in the dropshipping wholesalers warehouse – on your own website. This type of wholesaler will complete the sale of a product but will have it dispatched from their supplier directly to their customer without actually handling the goods. People sell dropshipped products just about everywhere! Many sales on eBay and Amazon are fulfilled through drop shippers, as are items on thousands of eCommerce sites, especially smaller ones.
Dropshipping wholesalers operate in bulk industries. They do not carry inventory. When they receive an order, they select a manufacturer who directly ships the merchandise to the customer. The title risk is taken by the dropshipper from the time the order is accepted to the time it is delivered to the customer.
Finally, we can’t forget about the simple nature of buying products from dropshipping wholesalers. Running a business is often complicated and fast-paced, so being able to easily order (or reorder) select items from a trusted dropshipper can do a lot to simplify your day. In time, you’ll get to know which items work best for your business—and when it comes time to restock.