Why Drop-shipping Products From Wholesalers Makes Business Easier Than Ever

By Author: Wordsworth White
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Have you ever heard of a dropship before? Drop shipping is a supply type delivery system where retailers are not responsible for keeping their stocks or goods. Instead of the common practice of keeping goods, the retailer distributes orders and ships to the customers through the manufacturer or wholesalers. Since the distribution to the wholesaler is bulk, the retailers earn money by purchasing the goods through the wholesale price and then marking them up to the end consumer. This practice is actually common to online businesses and to single chain retailers. Since their stocks are not kept on-site, there is a circulation of commodities as well as the profits. Usually, the retailers would be allowed to still sell their products on their stores, making them easier for selling. When a customer likes the product, they can either acquire the item on the store or they can acquire a wholesale package. The products can also be displayed either by a mailed catalog or through the retailer's site.

Sometimes, there are several tactics that drop-ship merchants apply. Some of them will hide the products in order to prevent the customers ...
... from knowing that the product is available at a wholesale price. Several retailers also share their products through the use of email based catalogs. The customers do not have to worry on going to the retailer's shop since they can just wait for their products to be delivered. Since the prices are good for the customers and the retailers, there are be any problems with distribution.

Upon delivery, the products sold often have a packing slip which is added by the wholesalers. The commodities often pass through a wide series of screening checkpoints in order to safely bring the product to customer. Retailers will most of the time, address the product with a return address of the distributor so that any returns are sent directly to the manufacturer. The packing slip is used as a form of a guideline so that the customers will know the name of the company or the contact information of the retailer.

There are several companies online which practice this type of trading. Again, most of them are retailers. Some however are auctioneers who would also practice the same tactics. They ship their products at a discounted price and when the product is returned then the transfer goes from the customer to the manufacturer. The manufacturer is able to send the product again together with their other stocks to several drop-ship merchants across the globe. Due to the success of this technique, several websites have already been changed to suit this kind of practice. Several companies are now sending catalogs with the prices to customers. Forums and social networking sites are also used for advertising ploys since they generate the highest traffic. Several retailers are now trading other commodities from other manufacturers. Since the process can be mimicked, then any kind of item on the internet can be traded with this technique.

Corrie Dunston is the author of this article about the benefits of using the drop-ship method.