Dropshipping is a chain in which a retailer does not keep the goods in bulk quantities. He transfers the orders to the manufacturers or the wholesalers. They transport the goods directly to the customers/consumers. Procedure of wholesale dropshippers: When the customers come and enquire about certain products retailers either shows them dummy items or even catalogues. When the customer decides what he wants the retailer places an order with the wholesale dropshipper who sends the products to the customer’s door step.
Benefits of Dropshipping
This eliminates the upfront inventory and thus they can have a positive cash-flow cycle. A positive cash flow occurs because here the seller is paid at the time of purchase. The seller is usually paid using credit cards or in credit terms. The drop ship wholesaler also transports the products to the customers.
Dropshippers who are authorized are wholesale drop shippers. They will send products directly to the customers. They sell one product at a time from their warehouse. Wholesale drop shippers pack and ship products for their customers. Here the retailer buys the product at a wholesale price and sells that product to customers at retail price.
A dropshipping company is a wholesale company that supplies the merchants with the product to be sold in bulk quantities but sometimes a single order is entertained too. They ship the products directly to the customer’s door step but only after the completion of payment. Dropshipping is a very simple and effective way to get involved in e-commerce. Many online merchants are starting drop shipping companies.
Here are some examples of drop shipping companies: – World Wide Brands, Salehoo, e-Bay.
The main objective of drop shipping wholesaler is to sell and supply the goods to their customers on A regular basis and also at their doorstep. Here are some examples of dropshipping wholesalers: American Eagle Trade Group, Beeline Trade, Dropship Store, Drop ship Warehouse, Luxury Brands, etc
Dropshipping Fees and Charges
Some wholesale dropshippers charge a nominal rate over and above the price of the product. This helps them to easily calculate their profit margin.
Some dropshipping wholesalers offer credit services to the customers. This helps them to maintain their relations and also increase their sales. This service also helps the retailers to a greater extent.
Is Dropshipping Profitable?
The basic concept of the wholesale dropshippers is to sell and supply the products till the customer’s doorstep. Due to this there is a good trade between them. Dropshipping service eliminates the warehousing storage requirements. So once a product is bought which works perfectly then the customers can buy them in bulk.
A dropshipping company is a great business opportunity for anyone who wants to make money but does not want to carry any inventory or products at a bulk quantity. However, it is very important to find a good and proper market and locate reliable wholesale dropshippers before starting a drop shipping business or even using a dropshipping service.