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A wholesale drop shipping line is a type of retailing where, instead of the retailer (meaning you) actually keeping the goods in stock at their own location, they instead pass the order, along with the freight details from a customer , to a wholesaler.  The wholesaler ’s job is  to forward the products ordered directly to your customer on your behalf. The great thing about this concept is that not only do you not need to have a large warehouse for the storage of products you are selling, but also you make a profit through the terms payed wholesale for , and the pricethat you will be selling it to your custmers at.  

 In fact , as far as drop shipping is concerned, you are infact the middleman acting for the product that your customer ordered and the producer who produces it.  This particular type of method is extremely beneficial to both modest retail businesses , as well as internet marketing online based stores, or those people who use mailing catalogs in order to generate sales for their companies.  In all actuality many customers who purchase their products in this way seem to not be too bothered that there is a hold up between the time when the products are ordered and when they literally have them come in.

 Now the biggest problem that is being dealt by drop shipping is that retailers don’t have to be concerned about controlling their stock, as this is done for them by the wholesaler instead.   Unfortunately, in a more traditional retail setting, the products a store proprietor orders will be ordered in bulk, and they will then need to be kept in a secure location until they can be displayed and sold.  What this means is that you are adding costs to an already large budget, as you will need to have storage space available, along with hiring staff to maintain the storage area and ensure that the goods are ready for delivery to the store and to know what levels each product is at.  You will also need to sink money investing in a good quality security system in order to keep the goods from being stolen.  However, if you were to use dropshipping instead, then you do not need to retain a large stock of your inventory on site, and also you no longer needed to employ a large team of staff.

 Also, you will find that a large quantity of manufacturers now find the idea of drop shipping as a an excellent investment, as it is also lowering their costs as well.  Plus an additional sales person has been gained whothe manufacturer doesn’t have on the payroll.   In addition they will be saving themselves money as they no longer need to arrange for the delivery for their goods to a retailer, so they are cutting downon the fuel charges and their handling in this fashion. Instead, they can use the more inexpensive shipping methods that are now readily available by using either UPS, FedEx or a locally based courier company to ensure that theirmerchandise is delivered directly to the client. Plus, as many manufacturers have spent vast amounts of money ensuring that their warehouses are completely secure, they know that their products are safe until the time that they are shipped , rather than them sitting in the back room of some retailer’s shop with no security or very little on the property .

This entry was posted on Tuesday, July 20th, 2010 at 11:10 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.