Drop Shipping Wholesale

Written by Ava Grzegorczyk
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Drop Shipping Wholesale Products

While drop shipping wholesale goods has been around a long time, lately it has really come into its own as Internet vendors take advantage of the incredible savings that can be had when they carry a minimal inventory. The vendor creates a website and sets up ordering and payment options and simply drop ships the individual goods directly to the consumer upon receiving an order. This process creates a winning situation for everyone involved.

Basically, the middleman almost completely eliminates the need to charge a higher price for products he has had to purchase, store, and insure. He pays nothing for the inventory until he has already sold it and is, therefore, able to keep his prices low. The manufacturer is carrying the expense and the risk, but that risk is reduced because the demand is created and increased by the middleman who may advertise in several media, especially the Internet.

Why Drop Shipping?

Because there is such a demand for manufacturers to provide drop shipping services for Internet vendors and even some retail stores, the manufacturers can still earn increased profits based on volume. For the middlemen, administrative costs are drastically reduced. For the customer, the prices are low enough to make Internet shopping a preferred method.

Given that so many entrepreneurs are looking at selling online and using the services of drop shipping companies, we developed Drop Shipping Depot to provide newcomers with basic information on how to make the best choices when it comes to getting started and earning profits. Knowing how the process works before you get started can make the difference between an exciting venture and money down the tubes.

Drop Shipping for Small Firms

Using drop shipping allows small companies, or even individuals, to offer the same quality of service as major corporations. The key is to find a manufacturer that will drop ship single items. Obviously, most manufacturers want to sell in bulk to other companies that carry an inventory and the risk. There are, however, manufacturers that have found a niche in the Internet market and are doing very well drop shipping single items.

In fact, there are manufacturers who now specifically cater to online vendors and who encourage entrepreneurs to start up businesses using their products. These manufacturers usually offer huge numbers of products that new businesses can purchase at very low prices. They can then pass those low rates onto consumers and can often grow their business very quickly.

Drop Shipping Services Online

There are even companies out there on the Internet that create a network of diverse manufacturers and, using the power of volume sales, create a service that allows small businesses access to the products and savings that a huge network of small businesses can command. Even adding another middleman can still result in significant savings to the small internet vendor and the the consumer.

The company that creates the network then becomes the drop shipper. By providing drop shipping wholesale options to the Internet vendors, they can often maintain a steady flow of products without holding or supporting a huge inventory of their own. Just think about it. How many times did you shop on the Internet two years ago? How many times have you shopped online lately? There's no doubt about the fact that online shopping for everything from widgets to cars is increasing, and drop shipping is making it happen.

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