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      August 3, 2020

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What is Wholesale Dropshipping?


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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.

Huntington native awarded WV Wholesalers Association scholarship

CHARLESTON - The West Virginia Wholesalers Association (WVWA), the trade association which represents the state's wholesale distributors, has awarded a college scholarship to Patricia Weir of ...

Published:  Sat, 01 Aug 2020 21:00:00 GMT

Fresenius SE & Co. KGaA (FSNUF) Management on Q2 2020 Results - Earnings Call Transcript

Q2 2020 Earnings Conference Call July 30, 2020 07:30 AM ET Company Participants Markus Georgi - Head, Investor Relations Stephan Sturm - Chairman Rachel Empey - Chief Financial Officer Conference Call ...

Published:  Sun, 02 Aug 2020 05:31:00 GMT

The Next Draft: Raise a glass to accord between breweries, distributors

They can woefully underserve a brewery, to the point of doing the bare minimum to market its beer, and can even buy and sell the brand to other distributors without permission. Trapped in a failing ...

Published:  Wed, 29 Jul 2020 03:30:00 GMT

Police: Thieves rob jewelry wholesalers in Whole Foods parking lot

Police said the wholesalers were in town to meet with clients when they were robbed. Officers hope someone can help identify the three people seen leaving in a dark-colored Chrysl ...

Published:  Mon, 27 Jul 2020 17:35:00 GMT

Global House Holdings, Ltd. Announces the Launch of cbdGPO and Its Florida Sales Office

GPO is a Group Purchasing Organization for the CBD and Hemp industry Las Vegas, Nevada--(Newsfile Corp. - July 31, 2020) - Global House Holdings, Ltd. (OTC Pink: GHHH), announces the official launch ...

Published:  Fri, 31 Jul 2020 07:17:00 GMT

Festive season sales | All depends on resolution of supply chain, operational issues: Retailers Association CEO

RAI wants authorities to allow essential shops, including kiranas, general trade shops, supermarkets, hypermarkets and wholesalers, to operate every day of the week until 9 pm to cater to the ...

Published:  Thu, 23 Jul 2020 14:40:00 GMT

State Senate passes distribution deal between brewers, wholesalers

BOSTON (WWLP) - The Massachusetts State Senate unanimously passed legislation Thursday that resolves a decade-long distribution dispute between brewers and wholesalers in the Commonwealth.

Published:  Thu, 23 Jul 2020 20:41:00 GMT

Online grocer Rosie boosts team to accelerate expansion

Rosie, the online grocery shopping platform for retailers and wholesalers nationwide, has brought in three new hires to lead Rosie's data integrations, onboarding and retailer support teams.

Published:  Mon, 27 Jul 2020 12:54:00 GMT

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