What are drop shipping wholesalers?

Good drop shipping wholesalers can be a great asset for a small retail business.  Wholesalers receive goods from manufacturers and then break down these bulk deliveries to supply retailers, who in turn market and sell the items to the customers.  In a drop shipping business, the retailer carries little or no inventory and routes customer orders through the wholesale distributor, who ships the item directly to the customer.  Some distributors will provide blind drop shipping, where they’ll ship using your retail company label and shipping information.  This can be nice because then the customer doesn’t know exactly who your supplier is or, more importantly, what your cost was to get the item.  

Certain distributors will handle drop shipping with as little as single quantities, while others will require bulk purchases.  Wholesale companies can be reluctant to handle very small orders, since it may not be as efficient or cost effective for them. The degree to which this occurs will vary with your product niche. In general, smaller manufacturers are more willing to drop ship directly for a retailer to get more exposure for their products. Smaller manufacturers can be great suppliers to recruit.

If you are a new, small retailer the main benefit of drop shipping wholesalers is that you don’t have to be able to manufacture your own product or stock your own inventory to sell products and build capital.  If the drop shipper handles single, or low, quantity orders, then you can also limit your risk of getting stuck with merchandise that you cannot sell.  This can work well for everyone so long as the retailer can get the goods at a true wholesale price. Getting goods that are in demand at the right price is the trick, though.

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