If you have been on the online e-commerce business for any set amount of time you are probably familiar with the term wholesale drop shipper. For those of you who aren’t hopefully this article will help shed some light on the subject.
To understand this topic let’s break down the word. The first word is wholesale. Wholesale is the discounted price in which many retailers get their products. Retailers are stores like Wal-mart, Target, etc. The process begins like this. There is a buyer who has a need. A product is created to meet that need. The manufacturer is the one who mass produces the product. After the product has been mass produced, it is sent to wholesalers. Wholesalers are the one’s who sell the product to the retailers. Thus, wholesale products are products that are sold at a lower price so that the retailer can make money. When the retailer makes money, they can employ people, and buyers are satisfied. Its a win-win-win situation and absolutely necessary for the American economy.
Now coming to the other part, drop shipper. The difference between a normal wholesaler and a drop shipper comes with this word. A wholesale drop shipper does everything a normal wholesaler does except more. One thing they do above and beyond is ship their products directly to a retailer’s customers. This is very profitable for the retailer because they do not have to pay for storage and it opens up the possibility for more options. It is also very convenient for the retailer. Another thing a wholesale drop shipper can do is brand the wholesale products that they are sending to the retailer’s customers. This is so the retailer can continue to build its name and that the customer will return to the retailer for future purchases. Next, they also have a catalog and pamphlet that they distribute to their retail customer base to help push products faster. Though this is good for the drop shipper, it creates competition among the retailers and it drives the prices lower. To prevent this, retailers initiate what is called a “blind shipping” process, in which a retailer makes sure that the items shipped does not mention a return address or they make sure that it is the retailer’s address. These are some of the many advantages of a wholesale drop shipper.
Earlier I mentioned the options that a wholesale drop shipper opens up. The first thing that came to mind when I heard of this concept was to start my own business. If I could just mark up the products of a wholesaler and I wouldn’t have to worry about shipping them to my customers, than that sounds like a very easy way to make money! The only problem would be finding customers to sell them to. However, due to the Internet, that wouldn’t be much of a problem. eBay.com would be the way I could connect to millions of customers globally. Thus, wholesale drop shippers are used widely among online sellers. In conclusion, this is a great way to start an online business.