subject: Wholesalers Vs. Dropshippers [print this page] To understand the difference between wholesalers and dropshippers, it is important to learn about both. There are various different categories of wholesalers in the market today. There are the kinds that supply products in bulk and there are those that also dropship. There are advantages and disadvantages to both models, but it is a fact that there are a growing number of eBay suppliers that are offering dropshipping services since their clients (or eBay retailers) often do not have the means to store and ship themselves. Let's look at the pros and cons of the model.
Costs: People who opt to use vanilla wholesalers need to buy in large fixed quantities to use the special wholesale pricing. This means that they need to invest not only in the warehousing, security and staff costs but also the cost of the money that they use to buy the goods. Most importantly they end up being responsible for shipping and transportation which can turn out very expensive for an upstart with small volumes. Conversely, dropshippers will also charge you an amount for their services. Compare and see what works better.
Control: Avoiding dropshippers has the advantage of retaining control over almost all aspects of your customer relationship. You know what you are sending. The quality of what you are sending and when it is likely to reach. This allows you to manage your customer engagement far better than you would be able to if you were to entrust it to a third party.
Risk: The biggest con or disadvantage can be the fact that you are giving a third-party access to your client list, which can often be the biggest asset of any retailer. While genuine dropshippers will not misuse this information, others cannot only undercut you themselves; they can also sell this information to competitors.
by: Jane Dawson
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