Dropship Warehouse

Written by Ava Grzegorczyk
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What is a Dropship Warehouse?

A dropship warehouse is a pretty unique place. It generally contains a wide variety of products, from electronics to action figures to figurines to scales. Unlike the typical warehouse, a dropshipper's warehouse is not geared to send bulk shipments of products out to large retailers. Instead of loading eighteen wheelers, these shippers pack single orders to send to individual customers who have bought the products from someone else, an online vendor.

The advantages to the online vendor are significant. Working with a wholesale dropshipper warehouse, the vendor is never required to tie up any capital in inventory. The vendor establishes a purchase relationship with the warehouse and is then able to order products to be shipped to the customer after the customer has paid the vendor at retail rates. The vendor pays the dropshipper at wholesale and includes pre-determined shipping rates.

Dropship Warehouse Advantages

Using this option, the vendor can spend more of her time focusing on marketing and sales. Administrative costs are low since the vendor has no need to hire employees to handle and track inventory. Paperwork is minimal. At the same time, the dropshipper sends out the orders in packages containing only the name of the vendor.

The advantages extend to the wholesaler who is able to move products without advertising or making a million phone calls. The wholesaler, who may be carrying expensive inventory that hasn't sold, now has a chance to sell to individuals who are flocking to the Internet to buy. The customer gets the products at a good price because one or more middlemen have been eliminated. Working with a dropshipper is not a guarantee of success for an Internet business, but it does offer a viable tool than can benefit all parties if handled with good business sense and decisions.

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