wholesale drop shippers info
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Drop Shipping

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Welcome to Wholesale Drop Shippers. The mission of this site is to offer free information to anyone wanting to educate themselves about this increasing way of doing business online and also offline.
The schema to the left illustrates the chain of action that happens during drop-shipping.

What you will find on this website:
1. Detailed profiles of drop shipping companies
2. Articles relating to drop shipping, product sourcing and also online selling and marketing
3. Forums for the discussion of drop shipping and online commerce with others

What is drop shipping?
Drop shipping is a method of retail sales that allows the retailer to sell products they don't have in stock and then have the distributor ship the product directly to the consumer (usually with the name of the retailer on the box). Traditionally, drop shipping existed mostly for out of stock items at the physical or mail order company; it allowed the retailer to still sell the product to the consumber instantly while having the product ship directly to the customer's door saving time and hassle for the consumer.
With the increasing number of home businesses and the number of these selling on the internet, drop shipping became more and more popular over the past few years. The reason is simple; home businesses usually don't have the money, time, ressources or space required to hold inventories. Using drop shippers allows them to sell products without purchasing it in advance! Selling venues on the internet are mostly the entrepreneur's e-commerce store and auction sites (ebay, yahoo, etc).

What are the advantages?
-No inventory. This is the biggest advantage of drop shipping, it gives you access to products without having to stock a single one! Saving time, money and space.
-Access to millions of products. With the increasing number of companies that now drop-ship, it gives you access to almost anything you can dream of selling!
-No shipping. This also saves time and money. Imagine the ressources needed to fulfill hundreds of orders if you have to ship them yourself. Now imagine using a drop shipper.
-No handling of returns. This is true with most drop shippers, they will handle item returns! Again saving time and money.

So again, drop shipping saves time, money, space and ressources... all of which the entrepreneur can put towards his selling efforts instead. This is why drop shipping is increasingly popular.

What are the inconveniences?
-You are liable. Unlike, for example, affiliate programs where you promote a company's products or services and receive a commission on sales, you are the one who is selling to the consumer and you have to assume all liability related to that.
-No control over the inventory. Because you don't have the items you sell in your control a few things can happen if you don't plan ahead. The best example to illustrate this is to allow yourself to imagine you've put widget "A" for sale on ebay for a 7 day auction. You didn't bother checking the stock level at the drop shipper first and they are not sending you update emails or you are not reading them. 7 days later, you've sold the item! Great! You think. You go to purhase the product at the supplier and oops.. it's no longer in stock and won't be for a while... or worse.. might never be in stock again! You try to explain to the buyer, but he thought you had the item and that's why you were selling it. You land negative feedback and have to refund your customer. This has cost you negative feedback and auction fees for no profit. This is a worse case scenario which you can avoid by preparing yourself in advance and keeping youself up to date on the stock levels at the drop shipper.
-No control over shipping. This is also related to having no control over the inventory. If you had the item in your possession you might be able to ship the item the same day you sell it making the customer very happy. However, if the drop shipper only ships 2-3 business days later or more, it means more waiting time for your customer.
-Market Saturation. Because of the nature of drop-shipping, many sellers may be doing business with one company. If this drop shipper only has a few products, it might be hard to sell because too many people are selling the same products and are competing; creating lower and lower costs until eventually it is no longer profitable to sell this product. The trick is to find products that there isn't much competition in!

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