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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 conduct 'wet run' trial with forklifts at new Toyosu fish market

TOKYO -- Seafood wholesalers and other operators held a training session at the new Toyosu wholesale market in the capital's Koto Ward on May 16, in a bid to ensure smooth sailing for the market's October opening as a relocation site for the historic ...

Published:  Thu, 17 May 2018 02:20:00 GMT



Biodiesel summer conference series kicks off June 12

The XBX regional seminars are one-day programs designed to educate fuel wholesalers, distributors, retailers, marketers, fleets, and municipalities on the current benefits and opportunities surrounding biodiesel. Biodiesel Magazine has been given a sneak ...

Published:  Mon, 21 May 2018 09:15:00 GMT



New Campaign Highlights 4,752 Beer Distribution Jobs in Michigan

"The 'Delivering Local Jobs' website helps recognize the 135,000 beer distribution employees who are the engines behind the American beer industry," said NBWA President and CEO Craig Purser. "Beer distributors may be best known for driving beer trucks down ...

Published:  Mon, 21 May 2018 06:46:00 GMT



Lawmakers to grill drug wholesalers over opioid epidemic

Prescription drug wholesalers, who sit between pharmaceutical manufacturers and health care providers, are expected to get an earful about their role in the opioid epidemic Tuesday. Executives from five companies will testify in front of the House Energy ...

Published:  Tue, 08 May 2018 07:17:00 GMT



FreshSpoke targets small agri-food wholesalers for "˜shared delivery system'

Online start-up FreshSpoke is a little less than two years old and now it's moving into southeastern Ontario. They provide a platform that alleviates the one issue that plagues small producers in the agri-food industry - distribution. FreshSpoke ...

Published:  Thu, 17 May 2018 17:00:00 GMT



Scottish wholesalers concerned over cattle decline

The Scottish Association of Meat Wholesalers (SAMW) and National Farmers' Union (NFU) Scotland held talks earlier this week on stability in the livestock sector. The meeting followed the SAMW Annual Conference in April at which there was concern over ...

Published:  Wed, 09 May 2018 08:46:00 GMT



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