subject: How Wholesale Drop Ship Works [print this page] If you are looking forward to start your own business or you already own one, you should know that inventory management can be challenging. The costs involved to store the inventory can escalate if you have extra stock at hand. The inventory needs to be kept current to ensure that your customers receive the best offerings and you may incur loss if the stock becomes outdated. These problems can be avoided through wholesale drop shipping. Generally, as a retailer, you face less risk if you dont have to store your own inventory.
By agreeing to engage in wholesale drop ship, you pass on the task of inventory-keeping to wholesaler. Your main function is to market the product or item successfully and pass customer order to the respective wholesaler. The wholesaler then prepares the product, labels it accordingly and mails it to the customer. As a retailer, you stand to profit because the wholesaler sells the item to you at a much reduced price. You, on the other hand, sell the item to customer at a fair retail price. By doing so, you preserve your cash resource by cutting down on cost of inventory storage and management.
Before any wholesale drop shipping can take place, firstly you need to secure arrangement with a reliable manufacturer or distributor. Since you will be working closely with the selected company, choose carefully and make thorough enquiries regarding their policies, shipping price, shipping procedure and legitimacy. Work only with trustable companies because your customers place their trust on you as the retailer. The e-commerce market is very competitive and you cannot afford to partner with a problematic wholesale agency.
Many online businesses attributed their success to wholesale drop ship. They will only choose to work with the best wholesaler. They build effective business partnership with the wholesaler to increase their profit and expand their product offerings.
by: Chris Cornell
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