ALL >> Marketing >> View Article
What Is Drop Shipping And Wholesaleing?
Many people may be confused as to what services are offered by a drop shipper and a wholesaler and what the differences are between the two. Most people are familiar with wholesale services; however drop shipping is definitely growing in popularity with the boom of internet retailers.
A wholesaler can be defined as a company who sells products at deeply discounted prices (typically half the retail price) and without sales tax. You must have a valid business license and a state tax ID to take advantage of these services. Manufacturers can sell directly to business owners or they could use a middle man. Wholesalers sell products in bulk and it is the retailers responsibility to store and sell the inventory.
A drop shipper can be defined as a wholesaler who sells products one at a time instead of in bulk. Using a drop ship method allows the retailer to list more products, carry less inventory, and invest very little as they don't actually have to pay for anything ...
... until the item is already sold.
Here is how the drop shipping process works: the retailer will list all or some of the items that the manufacturer or wholesaler offers on a website or via an in store catalog. When a customer buys the product the retailer will order it from the manufacturer or wholesaler. Then the manufacturer or wholesaler will send it directly to the customer. The retailer never physically has the product.
So which method is right for you? If you are a brick and mortar store it is probably best to have actual physical inventory. If you are an internet retailer it is more popular to use the drop ship method.
There are advantages and disadvantages to both methods. Drop ship services may charge a drop ship fee which will minimize your profit margin or make you less competitive than those using wholesalers. Retailers using a wholesale program will have to store and ship their own inventory as well invest more money for products that are not guaranteed to sell.
To find good wholesalers and drop shippers you can look through drop ship and wholesale sources such as directories. You should also verify the legitimacy of the companies by looking through wholesale news sites and forums for more information.
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.
Add Comment
Marketing Articles
1. Top Insights From Leading San Diego Branding Companies For Building Standout BrandsAuthor: Storm Brain
2. Why Your Next Social Media Campaign Should Feature Customer Stories
Author: Adam Gill
3. Brand Presence On A Budget: A Small Business Playbook
Author: Barry Elvis
4. Zero-click Searches: How To Stay Visible In Google’s New Era
Author: idigitize
5. 10 Best Mugshot Removal Companies In 2026: Suppress Arrest Records And Repair Your Reputation
Author: Sameer Gupta
6. Maximising Local Impact Through Newspapers And Rickshaw Campaigns
Author: Vikrant Kara
7. Digital Marketing Agency In Coimbatore
Author: webbitech
8. How Bytescraper Builds A Verified List Of Golf Cart Dealers In The United States
Author: ByteScraper
9. Complete Guide To Professional Carpet Cleaning In Mornington Peninsula
Author: Bond Cleaning Mornington Peninsula
10. Discover Om Books — Your Ultimate Destination For Book Lovers In India
Author: CONTENT EDITOR FOR SAMPHIRE IT SOLUTIONS PVT LTD
11. Make Your Brand Shine Online With The Best Seo Company In Pune
Author: alfiya
12. Choosing The Right Seo Agency Dubai Businesses Rely On: Easywebplans It Llc
Author: Easywebplans IT LLC
13. The Turning Point: When A Solar Business Stops Chasing And Starts Choosing
Author: Shan Tait
14. Digital Marketing Company In Thane Driving Growth
Author: Yelkotech
15. Digital Marketing Ethics Transparency Trust And Brand Reputation Digital
Author: Idigitize






