Plus And Minus Of Drop Shipping

By Author: Ann Hoskins
Total Articles: 30
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Considering the lucrative number of ways to make money on- and off-line many fall short of the advantages that can be attained with wholesale drop shipping. Wholesale drop shipping is a technique where a buyer can buy items at a wholesale price. Most commonly this is done in bulk, but in some cases is done in small quantities.

Rather then having the item shipped to your home or your business you can have the item directly shipped from the manufacturer to your customer. This technique has become increasingly popular with incorporation of the internet. This allows individuals to buy items at wholesale cost and gives them the ability to sell them online for a markup, which can be as high as one hundred percent, depending on the quality of wholesale sources.

A drop ship business can provide a person with a stay-at-home job and create a decent cash flow stream. The drop ship method of selling products over the internet will continue to gain dominance as the internet becomes shopping friendly. This increase in market share can also ...
... be credited to the increasing amount of updated wholesale news. Wholesale news is the foundation of community as it provides buyers and sellers with up to date useful wholesale source updates.

As with anything these days involving online shopping and buying there is an upside and downside. On the upside drop shipping significantly eliminated duplication efforts at both manufacturers and distributors warehouses. Since only one location is dealing with the packing and shipping of the product to the customer, there are instant reduction of costs in the supply chain.

Many firmly believe that the positives of wholesale drop shipping heavily outweigh the negatives; another factor in its increasing popularity. This being said, I would hardly say there is a downside, but rather risks. As with any business on- or off-line there are risks that must be noted, such as backordering, which can be frustrating for a small business owner and a customer. Also depending on the quality of wholesale sources your margins can be small. Clearly the positives outweigh the negatives. Even with small margins, profits are profits!


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.