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      June 17, 2019

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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.

Wholesalers Are Not Solving Their Inventory Problems

84% of real GDP growth from July 2018 through March 2019 was still sitting in inventories at the end of March. March looked like an opportunity to start clearing these inventories, but April saw ...

Published:  Tue, 11 Jun 2019 07:00:00 GMT



New state liquor law draws legal challenge from wholesalers, distilleries as unconstitutional

OKLAHOMA CITY - A new law governing the distribution of alcohol drew a legal challenge on Tuesday. A group of wholesalers, wineries, distilleries and liquor stores challenged Senate Bill 608, claiming ...

Published:  Tue, 04 Jun 2019 22:22:00 GMT



Wholesalers have a golden opportunity to attract millennial shoppers

Millennials are one of the most influential consumer groups right now - yet you wouldn't know it looking at most wholesale businesses. While big-name retailers have been quick to adapt to the demands ...

Published:  Tue, 11 Jun 2019 01:55:00 GMT



"Bill 71 will help wholesalers and consumers alike'

Senator James Moylan hopes to include Bill 71 into this month's legislative session. A bill that would amend Public Law 33-106, which sets the weights and measurements for trucks and containers on ...

Published:  Wed, 12 Jun 2019 07:10:00 GMT



Retailers in trouble as wholesalers use vendors to undercut them

MUTARE: Retail outlets in the eastern border city, may be forced to reduce their prices if they are to stay afloat after vendors reportedly contracted by wholesalers have flooded the streets with ...

Published:  Thu, 13 Jun 2019 21:17:00 GMT



"Lots of small Dutch cherries, so the large sizes will stay well-priced"

Pieter is a wholesaler from Krimpen aan den IJssel in the Netherlands. He supplies the total fruit and vegetable package to wholesalers and the market. Pieter has, however, made cherries a genuine ...

Published:  Mon, 17 Jun 2019 06:58:00 GMT



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