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What is Wholesale Dropshipping?

Wholesale drop shipping is a number of good things, and a few not-so-good, but with comprehensive research on your part, it can a great way to start an online store for less than a boatload of money.

In essence, wholesale drop shipping is a retail practice which closes the distance between a manufactured product's source and its end user, the consumer. It does away with layers of middlemen and warehouses. And it is a tried and true business approach with several decades of use to back up that claim.

With the advent of just-in-time inventory control, wherein an assembly plant has needed components arriving on-site when they are needed rather being stockpiled as in-house inventory, wholesale drop shipping shields a small, or large, retailer from the burden of up-front costs of acquiring and storing inventory. Wholesale drop shipping allows a retailer to test the salability of new products without a major investment. It also allows a retailer to offer a wide range of products within the niche market it operates. This is possible because the retailer doesn't buy the product until after the consumer, has paid for it.

Starting from the end of a sales transaction, a customer receiving a product he has purchased, and working backward to the beginning, it goes like this:

  • In a timely manner, a box filled with the customer's desired item arrives at his home via a package delivery service. The item is exactly what has been ordered. It is in excellent condition. The box it arrives in should have, as the retailer, your online store name on the shipping label. It is possible it may have no identifying information regarding who shipped it. It could have the name of the drop ship wholesaler who packed and shipped the box. And in a less-than-perfect situation, it might have a middleman's company name on the label, if you, as the retailer, didn't adequately do your homework before using wholesale drop shipping as a means of delivering something you sold to your customer.
  • Possibly the manufacturer, but more likely a wholesaler who handles the product in question, has packed and shipped just this one item to the address of your customer, that is "drop shipped" it directly from their warehouse without you, the retailer, having ever been in possession of the item.
  • The wholesale drop shipper prepares the item for shipping because it has received an order from you, the retailer, with whom it has a on-going business agreement. After receiving payment for the product from your customer, you placed the order with the drop shipper. The drop shipper in turn either bills the credit card you have on record with them, or offers you 30-day net terms for payment.
  • Moving further back in time, the customer, browsing your online store, has seen the object of his desire, which you have offered for sale, based on your knowledge of its availability from the wholesaler or manufacturer.

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Published:  Fri, 16 Aug 2019 09:21:00 GMT



Execs: Wholesalers at Center of Topa Plans After Acquisition of California Insurer

Two key executives involved in the acquisition of Topa Insurance Group by Altamont Capital Partners who spoke about the deal were emphatic about one thing: wholesalers will continue to be the center ...

Published:  Fri, 09 Aug 2019 14:34:00 GMT



Supermarket considers rationing business buyers

The move will prevent firms that have not made good contingency plans from using food retailers as wholesalers. But he said he did not envisage that the limits would affect normal retail customers.

Published:  Wed, 21 Aug 2019 15:00:00 GMT



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Local merchants are alleging that the fall in price of rawhide of sacrificial animals have benefitted wholesalers, while seasonal traders are incurring losses after this year's Eid-ul-Azha. Akbar Ali, ...

Published:  Tue, 20 Aug 2019 08:28:00 GMT



Pharma Wholesalers Strike $7.5M Deal In Drivers' OT Suit

Law360 (August 14, 2019, 2:01 PM EDT) -- Pharmaceutical wholesalers Cardinal Health Inc. and Kinray Inc. have agreed to pay $7.5 million to resolve claims they violated state and federal labor laws by ...

Published:  Wed, 14 Aug 2019 12:11:00 GMT



Chrononet, One of Europe's Leading Luxury Watch Wholesalers, Hits the Retail Market

LONDON, Aug. 13, 2019 /PRNewswire/ -- Since 2013, Chrononet (www.chrononet.com) have been the go to marketplace for the supply of luxury watches manufactured by the likes of Rolex, Patek Philippe, ...

Published:  Tue, 13 Aug 2019 09:18:00 GMT



What is the future of produce wholesalers? Survey says..

In anticipation of The Packer's 125th-anniversary issue, we have enjoyed publishing past anniversary articles from the Century of Produce and also posted industry columns for the 125th-anniversary ...

Published:  Sun, 18 Aug 2019 13:00:00 GMT



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Lobster exports to China have skyrocketed in recent years, thanks to U.S. lobster wholesalers and industry representatives doing an excellent job of promoting the delicious crustaceans at Asian trade ...

Published:  Wed, 21 Aug 2019 14:00:28 GMT



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