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Guide to Dropshipping

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Wholesalers> Wholesale Business Information> Dropshipping Information

Dropshipping has become very popular with Internet retailers and eBay merchants as they don't have to deal with the challenges or the prohibitive costs of purchasing and storing merchandise. They also don't have to pack and post products as the wholesale dropshipping company deals with all of it.

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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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