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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.

Carousel: Meet the New Voice of the Beer Wholesalers

Lauren Kane has gone from soft drinks to the harder stuff (professionally anyway). She's been named the vice president of communications for the National Beer Wholesalers Association, coming from the ...

Published:  Wed, 12 Sep 2018 17:52:00 GMT



East Coast US wholesalers, North Carolina crab harvesters brace for Florence

Wayne Dunbar, a commercial harvester of Atlantic blue crabs and the owner of Paradise Shores Seafood, a wholesaler in the US state of North Carolina, didn't take any chances this hurricane season. He ...

Published:  Wed, 12 Sep 2018 10:59:00 GMT



BIRTHDAY OF THE DAY: Laurie Knight, EVP of government affairs at the National Beer Wholesalers Association

How/where are you celebrating your birthday and with whom "I am headed out of town for my birthday, but not before stopping by Baked and Wired in Georgetown for a chocolate Texas Sheet Cake cupcake." ...

Published:  Sun, 16 Sep 2018 05:28:00 GMT



In western Minnesota, a hack to the food supply chain could help local farmers

The concept is called "backhauling" and it's been spearheaded by an alliance of the University of Minnesota, a garlic farm and grocery store in Big Stone County, and two grocery wholesalers as part of ...

Published:  Fri, 21 Sep 2018 21:32:00 GMT



Produce wholesalers enjoy Michigan's resurgence

Produce wholesalers in Michigan say the economy has rebounded in a big way from the dark days of 2009. ( Courtesy Rocky Produce ) Michigan's economy has rebounded in a big way since the dark days of 2...

Published:  Wed, 12 Sep 2018 12:15:00 GMT



Stand-alone Mobile Inventory Application for Wholesalers, Distributors

Redmond - WA September 19,2018 / Dynamic Systems, Inc., a Redmond, Washington software developer specializing in Barcode Systems for Inventory Tracking launches a new application that uses barcode sof...

Published:  Wed, 19 Sep 2018 15:06:00 GMT



Tsukiji market's last days: The trained eyes of tuna wholesalers

Before the start of the early morning auction of frozen tuna at Tsukiji fish market in Tokyo's Chuo Ward, round slices of frozen tuna tails whose cross sections resemble red grapefruits are placed ...

Published:  Sun, 16 Sep 2018 21:58:00 GMT



National Beer Wholesalers Association Hires Veteran Communicator Lauren Kane

ALEXANDRIA, Va. - The National Beer Wholesalers Association (NBWA), the leading advocate for America's independent beer distributors, announced today it has named Lauren Kane as Vice President of Comm...

Published:  Sun, 16 Sep 2018 10:00:00 GMT



Japanese Oil Wholesalers "˜Prepare To Suspend' Iranian Imports

Japanese news media are reporting that the country's major oil wholesalers are preparing to suspend crude imports next month. Jiji Press agency and Kyodo on September 3 reported that the action comes ...

Published:  Sun, 02 Sep 2018 20:00:00 GMT



Young Advisors Prefer Face-To-Face Contact With Wholesalers: Study

Younger advisors are more likely to want face-to-face contact with wholesalers, a new study finds. When dealing with wholesalers, retail advisors gravitate either toward technology or traditional face ...

Published:  Tue, 07 Aug 2018 10:46:00 GMT



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