The Difference Between Drop Shippers And Wholesalers

By Author: Ann Hoskins
Total Articles: 30
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Looking to start a business from home? Or are you just looking for more merchandise to sell in your online or brick and mortar store? Whatever the case may be it is important to know the pros and cons of using each a wholesaler and a drop shipper. So what is the main difference between the two? Simply put, a wholesaler sells in bulk while a drop shipper ships items one by one.

Dropshipping
is extremely advantageous for those who own internet businesses because it allows you to be in business without having to carry any stock. This eliminates youre the risk of slow moving products and gives you chance to run your store with minimal investment. It will also save you valuable shelf space and allow you to test products to see how well they sell before you buy it in bulk.

Another advantage to using drop ship products is that you do not have to buy the product until it is already sold. Once you sell the product you contact the manufacturer and they send ...
... the product directly to the customer. Most dropshippers will even print your business name on the shipping label so the customer will never know that you used a drop ship program.

While this seems like it may be too good to be true, here is the small catch. Because you are only buying one product at a time you may not get as deep a discount as you would if you were using a wholesale company. There also may be a small drop ship
fee (usually $3-$5) which can be passed the customer as your handling charge.

Wholesale is advantageous to those who own a brick and mortar store or have the money and storage space to store lots of merchandise. Buying your products at wholesale will probably give you a deeper discount which will either widen your profit margin or make you more competitive than those who only use drop shipping.

You can find many drop ship wholesale sources from a wholesale directory in order to find more companies to add to your inventory. Also make sure to research any wholesale news to make sure the company is legitimate.


Ann Hoskins has been writing and publishing articles about wholesale and drop shipping. She is a business consultant and has been specializing in logistics management and shipping for more than 10 years.