Pros And Cons Of Drop Shipping And Wholesaling

By Author: Ann Hoskins
Total Articles: 30
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Drop Shipping is when a seller, often an online seller advertises a product they have for sale without actually having that product in its possession. Also, when a seller uses a drop shipper they usually dont have to invest their money in a large inventory that may not sell and can pay just for what they want shipped instead of facing the possibility of paying for items up front that they may not possibly be able to sell. For many businesses this is a very cost effective way for them to compete with large sellers and present a large inventory just as a major retailer would.

However drop shipping can have its problems too. One issue that some sellers face is the length of time it takes to deliver a product to their customer. Since the seller does not actually have the item the shipping time may be increased because after the customer places an order with the seller, the seller then places the order with the drop shipper and that can add several days or more to the customers delivery time. Many customers do not take kindly to have to wait ...
... for lengthy periods of time to receive their merchandise so that is something to consider when deciding to become a drop shipper.

There are just as many benefits as there are rewards to becoming a dropshipper. If a seller does not want to go the route there is always the option of buying wholesale. When buying wholesale a seller pays for the products that they wish to sell upfront. It cost more money upfront however since it is required to buy in bulk the seller gets a much lower price per item overall and that increases a sellers profit margin. Hence before when a seller is buying one unit at a time they pay more and then they set a price to sell their newly acquired item for.

When buying wholesale, the seller is getting the item at a lower price than buying it individually and when they sell the item the make a larger profit since the item now has cost them less to acquire. Both dropshipping and purchasing wholesale are great ways to earn money in business and some business do one over the other and some to both and they each have their own different set of bonuses.


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.