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Wholesale Dropshippers – How Does Dropshipping Work?

wholesale dropshipping

dropshippingDropshipping 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.

Wholesale Dropshippers

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.

Dropshipping Companies

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.

Dropshipping Wholesaler

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.

Credibility

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.

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34 Comments

34 Comments

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  3. Derek

    March 25, 2010 at 9:33 pm

    Coming from the other end (manufacturer) We’ve seen companies use dropshipping and it be beneficial. Our trucks are busy, and business is still good- It was a lot to keep track of at first switching deliveries directly to customers etc.. but we managed to stay on top of it.

  4. Tech Wholesalers

    April 7, 2010 at 11:24 am

    The beauty of drop shipping is that it is virtually risk free.Basically time is the only thing that business owner must invest when using drop shipping In order to gain profit every retailer becomes part of this shipping process The true wholesale drop shipping companies referred to throughout this idea and making progress.

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    April 23, 2010 at 7:46 pm

    Now , I don’t worry about investments , or shipping products thanks to dropshipping ..

    Thank you for this article

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  7. Dan Johnson

    June 11, 2010 at 7:34 pm

    Great post, thanks for sharing this information and drop shipping has been around for a long time. Every one’s heard of Walter Drake Cataloques and that’s all he’s done forever.

    • ALLEN JAMES SPITZACK

      January 8, 2019 at 8:25 pm

      Thanks for sharing.

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    June 21, 2010 at 8:53 pm

    Wholesale Dropshippers is now become very popular all over the world.

  9. Nestor Hayden

    June 24, 2010 at 9:56 pm

    So essentially a dropshipping company becomes a middle man for you so your garage isn’t full of toilet paper and other random products. I haven’t really been successful finding a drop shipper that I like and feel safe with.

    Cheers,

    Nestor

    • Admin

      June 27, 2010 at 9:18 pm

      It could take a while sometimes, but keep looking until you find a decent one.

  10. China Wholesale Electronics

    July 21, 2010 at 9:39 am

    I like dropship as a online business.

  11. dhgate

    August 3, 2010 at 10:08 am

    I do think Drop Shipping can become one of the most profitale way to make money online

  12. ferrari watches

    August 5, 2010 at 8:13 am

    I like your blog so much!

  13. Kerry

    August 9, 2010 at 8:55 pm

    Oh ok. Now I understand what it means when the guys at my work say “drop shipper”…

  14. Cain

    August 10, 2010 at 9:21 am

    Thanks for your share.

  15. health insurance quotes

    September 9, 2010 at 8:14 pm

    it is great not to have to rent a large buliding to keep the product. we are actually using this now with out chef wear

    • Admin

      September 13, 2010 at 1:51 pm

      I agree with you. This makes it even more affordable to start up a small business.

  16. Jeff Collins

    September 12, 2010 at 2:51 pm

    I have been using dropshippers for 5 years and i just wanted to tell people about a company i found mgdwholesalers there customer service in unbeatbale when you are a buisness owner thats what you look for when you know you place an order its being handled with the care that you would do.

  17. Philip (Seeking to make a million)

    September 16, 2010 at 9:57 pm

    My whole life I have tried to find something to make money online and everything seems to good to be true.

    Your article was very interresting reading and will take it to heart.

    Might use it in the future , you never know.

    Thanx

  18. Bunny Tee

    September 22, 2010 at 2:01 am

    Great article and well done. I been drop shipping products for the last 4 years and my business did not take off until I build my own website with niche products. Great ar

  19. Mark

    September 26, 2010 at 4:14 pm

    Drop shipping can work with the right relationships. Just keep in mind you need to find a good niche to compete in.

  20. Cornelia

    November 8, 2010 at 8:33 pm

    I know of some supposedly good training on how to set up a website based on dropshipping. It’s not something that I have gotten into at this point, but I may in the future. I prefer the way traditional affiliate marketing works because it doesn’t require me to get involved with a customer or place any orders. Another downside is there seems to be several scammy dropshipping companies out there. I don’t know why, but it seems to be hard to find one that will allow you to have any decent profit margin.

  21. Amy

    December 7, 2010 at 11:50 am

    It was a lot to keep track of at first switching deliveries directly to customers

  22. Michelle

    December 11, 2010 at 7:07 am

    I prefer the way traditional affiliate marketing works because it doesn’t require me to get involved with a customer or place any orders. Another downside is there seems to be several scammy dropshipping companies out there.

  23. James

    December 25, 2010 at 6:45 pm

    Drop shipping is great because it allows you to start selling online with minimal startup costs. Since you don’t have to purchase any inventory until it sells, you have no stocking costs.

  24. Mike

    December 25, 2010 at 6:58 pm

    Finding a real wholesale drop shipper is a very difficult task. The internet is cluttered with middlemen and cookie cutter sites.

  25. Danny

    December 25, 2010 at 7:05 pm

    The drop-shipper’s Web site provides you with descriptions and images. Fine. But you and everybody else who sells that item on eBay will have the same photos and descriptive copy. Do yourself a favor and get a sample of your item, take your own pictures, and write your own description. Then at least you have a chance at beating the competitive “sameness” on eBay.

    • Admin

      January 6, 2011 at 10:08 pm

      Very useful points. Also, its important to be extremely cautious so as not to fall into the hands of scammers.

  26. Oliver

    December 25, 2010 at 7:11 pm

    Skepticism is healthy. When you come across Web sites that proclaim that they can drop-ship thousands of different products for you, think twice. Thousands? How many stores carry “thousands” of items — if they do, they have vast square footage for storage and hundreds of thousands of dollars to invest in merchandise. Most drop-shipping services don’t. A much smaller offering of merchandise may indicate that indeed the drop-shipper has the merchandise ready to ship and isn’t relying on ordering it from someone for you.

  27. Admin

    February 20, 2011 at 1:45 pm

    That’s a good point although not entirely sufficient on its own.

  28. abdu

    June 8, 2011 at 1:55 am

    I agree that dropship business really easy way to start your own business, with dropship you do not have to keep physical stock with yourself which needs your investment. what all you do is first sell collect the moeny and then order from your supplier and keep your profit margin.

  29. gerry downey

    August 21, 2011 at 10:32 am

    I have to say that i wish when i was starting out on the ladder of product sourcing
    and trying to find the right supplier that would not only dropship but dropship on time and and with no hidden setbacks which is the mother of all frustrations both for the seller and buyer i wish i could have accessed this kinnd of info from a blog like this oh life would have been much easier great blog and great info cheers
    gerry d

  30. G09

    October 10, 2011 at 5:20 pm

    Dropshipping business is really advantageous. Because you can earn easily without spending too much and without keeping bulk of products in your possession. You simple have some trusted wholesaler affiliates that you can turn to when there are customers. This is a very good strategy. I am grateful that you posted something like this to inform others about this great opportunity.

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