Dropshipping companies are basically wholesale companies that
also drop ship their merchandise and products. They receive individual
orders and payments from retailers and eBay merchants and then
send the product to the customer.
eBay Wholesalers
Online retailing websites profit from the benefits of drop shipping
merchandise, but so do eBay sellers. eBay
wholesalers have created highly profitable home businesses
by using dropshipping companies to supply and deliver a wide range
of products. The eBay seller only has to cover the wholesale cost
of the product and the postage costs that the dropshipper will
charge to make a profit. No large initial outlays or expensive
storage costs will have to be paid by the eBay wholesaler, which
means that products can usually be sold for a much cheaper price,
while still being profitable for the dropshipper and the eBay
seller.
Drop Shipping Benefits
The
benefits of using a dropshipping company can be great. Depending
on the number of products needed to function properly as a business,
it could cost many thousands of dollars just to purchase enough
stock to open.
After purchasing
your initial merchandise, you would then have to rent a space
to store the stock. Then you would have to deal with postage
and packaging which can be a very time consuming job when you
start receiving a decent amount of orders every day.
But if you
create a relationship with a dropshipping company, they already
have the wholesale merchandise and the resources available to
deliver them to your customers.
The dropshipper
benefits by selling more products and the online retailer or
eBay wholesaler benefits by saving on the costs of purchasing
and storing merchandise. So both parties profit from dropshipping.
It has also
been called "Blind Shipping" as it can be merchandise
shipped to the customer without a return address. The wholesaler
may also have his business details and contact information included
though. Good dropshipping companies also deal with returns,
which makes things easier for the customer and the retailer.
Drop Shipment
or Drop Shipping can be a very rewarding and profitable business
to be in for both the dropshipper, the retailer and the eBay
seller, but like any profitable business there is a lot of hard
work involved. Don't be conned into accepting offers that seem
too good to be true as there are a number of unscrupulous people
out there looking to take advantage of those that are new to
the drop shipping industry.
Don't expect retailers or eBay
sellers to easily give up their wholesale or drop shipping
company suppliers either, as this information is usually guarded
for competition reasons. If they gave this information out freely
to their competition it would make their business a lot more
challenging. So don't be offended if your probing questions
are ignored, but don't give up looking for the right dropshipper
for your business as it can be a profitable way to earn a living.
See our selection of dropshipping
companies listed on the Wholesale Directory.
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