|
Home | Business | Small-business
Benefits and Drawbacks of Working with a Dropshipping Wholesaler 
By: Davion Wong
If you run a reselling business on the web, you know that a dropshipping wholesaler you work with is largely responsible for your enterprise's success or failure. Both great benefits and great risks are involved in the business you do with a dropship company. But for many small resell businesses, this is the only opportunity to boost their revenues without much effort and money investment.
Pros of a Dropshipping Wholesaler
1. You don't have to invest in inventory; this saves you a ton of money and additional headache in case the goods are not selling well.
2. You don't need to worry about a proper storage of your goods and/or investing in a warehouse, simply because you have no goods! In fact, you may never even touch the product you are selling!
3. Since you are not the manufacturer, you have the choice of switching between different merchandises. There is little risk for you to do product switching.
4. You can offer a wide product mix with many similar or complementing merchandises. For example, if you are selling cell phone batteries, you may consider selling cell phone covers as well.
5. You do not have to hold any surpluses. Since you do not have any inventory at all, you would not incur any losses like the manufacturers who may have to stomach losses whenever products become obsolete or expire.
6. You would not have to struggle with negative cash flow. Since the buyer would have to pay for his or her purchase first, you already have the money in hand to pay the dropshipping wholesaler. The difference is your profit.
7. The dropshipping wholesaler also handles all the packaging and shipping of the merchandise. In this way, you not only save money, you also save time. Leave it to the experts to handle the shipping. It is also cheaper for them to do so.
8. With most dropship suppliers you qualify for the wholesale price without the need to place a minimum order.
As usual, all businesses carry a certain level of risks.
1. Since you are not responsible for the delivery, you cannot be able to influence the process. Should there be delays, you are the face who is getting all the blame from the customers.
2. Should you choose to partner with a lousy dropshipping wholesaler, you can expect major hiccups along the way. Late delivery, poor quality goods, and in some cases, fakes are some of the common problems resellers complain about when dealing with shady companies. This can kill your business online since the reputation of your reselling business depends a lot on your customer's feedback about you in the auctions such as eBay.
3. You are normally not informed when a certain product is sold out, so you may continue to offer it in your shop until you get angry inquiries from your customer on the reasons why the purchase hasn't arrived yet.
From we have learnt so far, it is important for anyone who wishes to resell products to work with a reliable dropshipping wholesaler. Finding the cheapest guy is not the right way to start. It is equally important to find out more about the service rendered as well as whether the company has a good reputation among resellers like you.
Discover more useful tips on finding a good dropshipping wholesaler from my income blog. Also find out which supplier is offering quality service and great products at huge bargains.
Article Source: http://www.uberarticles.com/articles
Want to know which dropship wholesale distributors offer the best deals? For more tips, see this on what makes good dropship wholesale distributors.
This article is licensed under a Creative Commons Attribution-No Derivative Works 3.0 Unported License, which means you may freely reprint it, in its entiretly, provided you include the author's resource box along with LIVE links (without "nofollow" tags).
| 
