Dropshipping For Your Wholesale Business

By Author: Ann Hoskins
Total Articles: 30
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Drop Shipping is an extremely useful tool for companies as it is a supply management technique used by many to alleviate Warehouse costs. By marketing products to your clients via the internet (ebay, personal websites, etc) you can then send the completed order to a supply company that will ship your product. Many products that are drop shipped are those from other wholesale sources providing their product at a reasonable price to the seller.

Wholesale sources are easily found through the internet or are advertised in various magazines. These companies are responsible for physically assembling the product and taking a large lot of product, sorting it and breaking it down into smaller lots for sale. Most wholesalers will provide your company with a agent or broker to work with and who will then provide you with wholesale news, keeping you apprised to changes in pricing and products.

Products through wholesalers can range from flowers to food to religious products and even clothing. Wholesale ...
... companies that are easily recognized through branding are Costco, Sams Club and ebay.

By using a fulfillment house to store your products at and using them as a dropshipping service, you can all but cut the cost of warehouse space and usually pay a per item shipping cost. This creates a positive cash flow for the seller as they are not responsible, in most cases, for purchasing product up front. This is an ideal situation for the small business as they need not dedicate time to inventory management and shipping.

Dropshipping is a great alternative to purchasing product when there is a recent popular item such as T-shirts for a sporting championship or Presidential race. Many suppliers will provide you with the product as long as you are the vehicle for marketing and selling. Because these events are not long lasting, you need not purchase a large inventory to sell and thus are not left with inventory that cannot be sold. This can save you thousands per year and allow your business to change with the times and adapt to what the public wants.


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.