Drop Ship Wholesaler

Written by Ava Grzegorczyk
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What is a Drop Ship Wholesaler?

A drop ship wholesaler is one who either carries an extensive inventory of the types of products you need or one who has contracts with multiple manufacturers who agree to drop ship their products to individual consumers on demand. Middlemen and mail order or online vendor companies often use the services of drop shippers. They do so because it is an effective and inexpensive way to move their products.

When an Internet vendor gets an order for a product and pays for it online by credit card, the vendor simply contacts the drop shipper, and the order is shipped directly to the end user. The product never goes through the online vendor's hands. Because the vendor is not carrying or supporting an inventory, the vendor can pass along discounted rates to customers.

Drop Ship Wholesaler Advantages

Taking into account the lack of dollars tied up in inventory, using a drop shipper allows the vendor to concentrate on other areas of his business. For example, being able to focus on advertising and sales without worrying about having to "eat" the cost of products that don't sell means a stronger cash flow. Cash flow is also enhanced by the feature of receiving payment for each individual order in advance.

Using a drop ship company also means that you don't have to hire the personnel that would handle the shipping, again, reducing your outlay. Some of these wholesalers even provide such perks as alerts regarding new products or emails confirming shipment. This process also allows small companies to compete with much larger ones.

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