Dropship Wholesale Company

Written by Ava Grzegorczyk
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Vendors and a Dropship Wholesale Company

Internet vendors are turning more and more to a dropship wholesale company to handle every stage of their inventory and shipping functions. While this might seem like an unusual arrangement, the general process has been in place for decades. In fact, for years major retailers have used dropshipping companies for the same purpose.

The advantages for the vendors, whether online or retail, are enormous. They virtually eliminate any capital investment in inventory and significantly reduce the number of employees they need for packing, shipping, and tracking inventory, as well as for associated administrative tasks. The vendor also avoids the potential risk associated with purchasing large quantities of products that might not sell.

Using a Dropship Wholesale Company

Obviously, vendors who use dropship wholesalers can use their capital and their staff for other functions. The dropshipper manages the entire process that moves products from a warehouse to the vendor's individual buyers. The vendors can generally concentrate on marketing and selling the wholesaler's product lines to which they gain access in a variety of ways, including paying a small monthly fee in some cases. One huge advantage of this process is that it benefits thousands of vendors working from home where they have no room to warehouse hundreds of products, let alone pack and ship them.

For the wholesaler, the advantages are also simple. In some cases, for example, with the vendor marketing his products, the wholesaler can sometimes move products that he had not been able to sell. Obviously, not much of the wholesaler's capital is used in marketing or sales with the exception of marketing his services online. Even more important, the buyer gets a better price when this process is used because it often eliminates one or more middlemen.

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