ALL >> Marketing >> View Article
Dropshipping Vs. Wholesaling
Whether you are new to the retail business or an old veteran it is always a good idea to keep up to date with the latest wholesale news. With the surge of internet retail businesses emerging everyday comes a wholesale trend called drop shipping that could be beneficial to both internet and brick venues. Many people may be confused as to differences between a drop ship and wholesale program. In the following article I will outline the differences between the two so you can decide which would be the best method for your business.
Essentially both methods are the same in that with both you will receive a deep discount (or wholesale discount) in order to sell your products at retail prices. The difference between the two is how products are sold and shipped. With wholesale products the retailer would buy a large quantity of products and store them in their warehouse.
With drop shipped products the wholesaler or manufacturer stores the products in their warehouse while allowing sellers to list the products on their websites or catalogs. Once the item ...
... is ordered by a customer the retailer will order it from the manufacturer or wholesaler. This method allows the retailers to order their products one by one which eliminates the risk of slow moving products.
Dropshipping is probably most beneficial for internet based stores as it allows the retailers to offer a large selection without having to physically own the stock. It is also beneficial because the manufacturer or wholesaler will ship the products directly to the customer.
Disadvantages to drop shipping your products are that you may not get as deep of a discount as you would if you bought the products in bulk. Typically wholesale products offer a 50% discount whereas drop shippers typically offer a 30% discount. There may also be a $3-$5 drop ship fee per shipment which could significantly affect your profit margin or make your business less competitive.
To find more drop shippers or wholesalers you can check out wholesale sources such as directories and forums. These sources will help you find new and reputable companies that offer both wholesale and drop shipping services.
Ann Hoskins has been writing and publishing articles about wholesale and drop shipping. She is a business consultant and has been specializing in logistics management and shipping for more than 10 years.
Add Comment
Marketing Articles
1. Digital Marketing For Healthcare: Simplifying The Patient JourneyAuthor: John Smith
2. The Power Of Community In Web 3 Marketing
Author: Paul Rudd
3. Tennis Court Flooring In Mahira Group Of Companies
Author: mahira group of companies
4. Meet Digital Shefali Salvi: Certified Digital Marketer In Mumbai
Author: Digital Shefali Salvi
5. Unleashing The Potential Of Digital Marketing In Ghaziabad: Hobo E Services Leads The Way
Author: Hobo e Services
6. How Seo Is Helping Small Businesses
Author: Jai Bhatt
7. Talking Kidsbooks Review – Effortless Talking Books For Kids, Made Simple!
Author: Joshua thomson
8. Talking Kidsbooks Review – Make Interactive Kids Books In Minutes!
Author: Joshua thomson
9. Crowdworks Review - Explore Features, Benefits & Exclusive Offers
Author: Joshua thomson
10. Empowering Startups Through Strategic Branding
Author: tadglobal
11. How To Achieve Professional Results With Coldesi Dtf Printers
Author: DTGPRO
12. Boost Your Website Engagement With Facebook And Instagram Widgets
Author: richard
13. Best Digital Marketing Consultancy In Aurangabad
Author: Digi Tech Glide
14. How Ai Helps You Keep Your Ecommerce Customers Coming Back For More
Author: Orange Mantra
15. Web Design Services In Chennai: Unlocking The Potential Of Your Digital Presence
Author: istudio technologies