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What A Free Dropship Wholesaler Means And How You Can Find One

Feb 5, 2008
Finding a reliable dropship wholesaler is half work done, when you are setting up an online reselling business. It spares you tons of efforts, time and money, bringing a regular flow of profit from virtually nothing. You never even get your hands on the products you sell, not to mention storage, packaging, shipping costs, and unsold leftovers. In other words, you are just a retailer who finds buyers for a manufacturer's goods and benefits on the difference between the wholesale value and the final sale price.

People tend to think that free dropship wholesalers provide free shipping. That is a big mistake and misperception. A free dropshipping company does not pay for the shipping costs you have incurred in the sale. Rather, the free dropship wholesalers do not charge you for using its services. In other words, someone still has to bear the shipping costs, which in your instance, either yourself or your customer.

Bear in mind that not all distribution companies are free - many of them do charge an additional fee for using their services. As a result, this adds to your overall expenses, cutting from the potential profit. The fee may vary significantly and can be applied monthly, annually or per transaction, so in your search for good wholesale suppliers you also need to take this into an account.

Every businessman hopes to work with a free dropship wholesaler. This really gives you an edge over your competitors as you need not worry about escalating expenses and can price your products more competitively. At the same time, when you increase the volume of transactions, you can negotiate with the suppliers for lower wholesale prices. This would beef up your profit margins.

Unfortunately, working with a free dropship wholesaler does have its challenges. There are many other aspects you need to consider and think carefully. While saving on costs is great, you need to look at the reputation and reliability of the supplier you choose as well as whether their merchandise quality is superb and delivery is timely. This can make or break your reseller business especially if your service standard is watched closely by the online auctions like eBay.

Sometimes, it can be a daunting task for you to find a reliable and honest distribution company to work with. This is especially true if you are a newbie. There are just too many scammers out there or middlemen agents who are not the true blue wholesalers. You may have to dig through and work with dozens of them before you end up with a good dropship wholesaler.

Online directories of suppliers may or may not be a good source. Almost all of them are paid and scam risks are plentiful. In case you don't want to use the directories, you have no other choice but relying on somebody else's experience.

You can actually participate in discussion groups and forums that are related to the reselling business. Find out from other resellers where they are purchasing their merchandise. While there are selfish businessmen who would rather keep them as secrets out of fear of competition, you do come across one or two who would be eager to help you find an honest dropship wholesaler to work with.

Read about the most frequently used dropship wholesalers in the business from my site now.
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Discover how you can rake up more profits by using these dropship wholesale distributors. For more reading, see this on what makes good dropship wholesale distributors.
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