Wholesale Drop Shipping: An Overview

Maybe you are a small business owner looking to expand

, or a business owner in the making who is investigating online retailing. You may be very familiar with the concept of drop shipping, or this may be an exciting new discovery. Either way, it can provide that convenience and flexibility for your business that you've been seeking.

So, What is Wholesale Drop Shipping?

Basically, wholesale drop shipping allows Web stores to provide goods to customers without having to maintain an inventory. A situation that would lend itself to this form of product sourcing would be when you sell very few of a certain item in a month, but continue to have demand for that item.

Rather than buying a large amount of the product wholesale and then slowly distributing it yourself, you simply take the orders as they come, and let the drop shipper do the work!

Benefits

Are the hours that you spend going through your inventory, preparing items to be sent, and shipping merchandise starting to add up? Wholesale drop shipping can save you those hours as well as the stress and hassle!

With drop shipping you no longer have to worry about maintaining inventory or having foam pellets constantly turning up in the sofa cushions. The inconvenience of shipping merchandise is gone, yet the profits of online retail remain.

Would you believe that overall man hours can be decreased? It is made so by cutting out that middle step where you have to re-ship products since they are shipped directly from the wholesale retailer to the customer.

Other advantages come simply from location. Wholesale suppliers have their warehouses and production centers all over the world whereas you may live in a location a little off the beaten path. Customers worldwide receive their merchandise from the closest production center, allowing shipments to be timely and increasing a customer's trust in your business.

Now, to be fair, a brief word on the disadvantages. Occasionally, a wholesale supplier may simply run out of an item which results in a back order.

This could lead to a long wait for the customer to receive their order and a chance for customer dissatisfaction. When researching to find the best dropshippers for your needs, ask about their in-stock rates (percent of time items are in stock). Doing so will help you minimize the inventory problems inherent to allowing another company to control your product supply.

However, in light of the overwhelming advantages of wholesale drop shipping, an occasional back order seems a small price to pay!

by: Stu Wiseman

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