The Good, The Bad and The Ugly of Wholesale Dropshipping

Plenty of online seller choose to use drop shipping for the low cost of entry which is none and basically the choose it because it an easy solution but there are others sellers on the other side stating that leaves no room for profit. Drop shipping is no different from any other method of sourcing products for your business it has it pluses and minus.

What is Dropshipping?

Dropshipping or sometimes called Wholesale Dropshipping is basically a service performed by many wholesalers and distributors that provides the web retailer a way to sell items with actually having to store the items. The wholesaler stocks the items in huge quantities which you in turn list in on you web site to sell.

Your customers will go to your web site on order a product or item in turn they pay you then you then purchase the item from the drop shipper at a wholesale price where the drop shipper then sends the customer the item saving you time and money. The end result your small business now looks huge to the consumer.

Here is a summary of some of the benefits that comes with drop shipping

* No need to stock inventory This is a major benefit of drop shipping that enables that small business to compete just imagine starting a new ecommerce business and stock for over 100 items.
* Lower overhead The cost of warehousing and shipping items can be astronomical it does not pay unless you are doing things on a very huge scale.
* No order minimums by using drop shipping you only order when you have a customer so you can order as many as one item at a time.
* Time saver Time is a great point for using a drop shipper if you would to sell the store and send the items you self you would have to take care of shipping which in turn means a host of other things you would need to do like receiving and organizing inventory, printing labels, and packing and shipping orders. With the time save you can spend more time building you business and working on web traffic.
* Wider merchandise selection. You can now sell items that would normally be hard or near impossible to physically store with spending huge amount of money; You can now offer large items, such as Big Screen T.V and maybe some furniture

Now as you know with every upside there is normally a downside I will now talk about some of the negative issues you may have with drop shipping.

* Smaller Profits. The problems that you run into with drop shipping is when you buy one item at wholesale the price would be much more than if you would buy 10 or 20 items wholesesale bottom line the more you buy the better the price. Remember you are any added discounts that you would receive if you were buying the items in bulk.

* Fee for drop shipping All those benefits you get with drop shipping such as packaging, shipping and labeling, even though you did not pay for the initial fees the dropshipping will charge you a fee.

* Occasional delivery issues. If your drop shipper is slow filling your orders, or does a poor job packaging them, it reflects badly on you and costs you repeat business. When using a new supplier, it's always a good idea to test them out first and get an idea of what your customers will experience. Place an order with them yourself, and see how quickly and competently they handle it. If you order a few of your most popular items, you'll also have them on hand in case your drop shipper ever runs short.

In conclusion when you are first starting you ecommerce business, wholesale dropshipping becomes very attractive an easy, cost-effective tool. Now that don't mean you should do all drop shipping for your business as your e-business grow start looking into other ways to source products.

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