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Dropshipping Wholesaler - What Potential Resellers Must Know

Jan 29, 2008
Perhaps you are considering reselling products on online auctions to supplement your home income. Then you need to know that a dropshipping wholesaler is probably the partner you need for your business. It can make or break the business so consider which dropship company you are going to work with carefully. For small time reselling businesses, it is even more critical to their survival.

There are many advantages in working with a dropshipping wholesaler.

1. As a reseller, you do not hold any inventory. This means that you need not worry about whether the products sell well. If they sell well, order more. If they do badly, stop the orders!

2. You need not pay for the storage of the products. There is absolutely no need to have a holding area for the merchandises.

3. If you want to sell more than one product, by all means do so. You can switch between products and discard poor sellers anytime you wish.

4. You can always offer a wide range of products. The online auctions like eBay are your shop front and it is relatively simple to set up a whole selection of products to sell.

5. You have no leftover items, which you would need to store and find ways to get rid of, compromising on the price.

6. The flow of cash starts with the very first item you sell. In a simplified way, the process looks like this: the buyer pays you, you pay to the dropshipping wholesaler, and the difference between the two prices makes your profit.

7. The dropshipping wholesaler also handles all the packaging and shipping of the merchandise. In this way, you not only save money, you also save time. Leave it to the experts to handle the shipping. It is also cheaper for them to do so.

8. Nowadays, many dropship suppliers are willing to offer you wholesale prices without minimum orders.

Naturally, when you run any business, there are potential risks you have to bear.

1. Since you are not responsible for the delivery, you cannot be able to influence the process. Should there be delays, you are the face who is getting all the blame from the customers.

2. Should you choose to partner with a lousy dropshipping wholesaler, you can expect major hiccups along the way. Late delivery, poor quality goods, and in some cases, fakes are some of the common problems resellers complain about when dealing with shady companies. This can kill your business online since the reputation of your reselling business depends a lot on your customer's feedback about you in the auctions such as eBay.

3. There is a potential risk of you not knowing that a product is completely out of stock. You could be still offering the product for sale and find that there is no way you can ever deliver the goods. Either you source for it from another supplier or you may have to refund your customers and suffer a dent in your reputation.

As you can see, selecting a dropshipping wholesaler to partner with is not as easy as ABC. Sometimes, you have to find out from different resellers or do a few trial purchases in order to know if the overall quality and service is reasonable.

Discover more useful tips on finding a good dropshipping wholesaler from my income blog. Also find out which supplier is offering quality service and great products at huge bargains.
About the Author
Find out which are the most reliable dropship wholesale distributors. For more reading, see this on what makes good dropship wholesale distributors.
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