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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.

California's new transparency law reveals steep rise in wholesale drug prices

Pharmaceutical companies raised the "wholesale acquisition cost" of their drugs-the list price for wholesalers without discounts or rebates-by a median of 25.8% from 2017 through the first quarter of ...

Published:  Wed, 16 Oct 2019 07:11:00 GMT



Emerald Health Therapeutics' Quebec Premium Cannabis Operation Receives Sale License Amendment, Allowing Direct Sales of Branded Products

branded dried cannabis products directly to provincial/territorial wholesalers and authorized private retailers in accordance with provincial/territorial frameworks in Canada. To date, Verdelite has ...

Published:  Wed, 16 Oct 2019 17:43:00 GMT



Wine and Spirits Wholesalers of Kentucky selects Charles George as new executive director

The Wine & Spirits Wholesalers of Kentucky (WSWK) have announced Charles George is its new executive director, putting his many years of policy experience to work in guiding the organization in ...

Published:  Sat, 12 Oct 2019 21:45:00 GMT



Wine & Spirits Wholesalers of Kentucky name executive director

LOUISVILLE, Ky. - Wine & Spirits Wholesalers of Kentucky named Charles George its new executive director recently, putting his many years of policy experience to work in guiding the organization in ...

Published:  Mon, 14 Oct 2019 09:16:00 GMT



Centre to advice all states to hold regular meetings with wholesalers, traders to check hoarding of essential food items

The Centre will advise all States to hold regular meetings with wholesalers, traders, importers, exporters of onions, pulses, edible oils and oilseeds at State and district levels especially during ...

Published:  Tue, 15 Oct 2019 19:41:00 GMT



The Granite Group acquires Webber Supply

Concord, New Hampshire-based The Granite Group Wholesalers, announced it has finalized the acquisition of Maine-Based Webber Supply. Terms of the agreement were not disclosed. Established in 1960, ...

Published:  Wed, 16 Oct 2019 07:21:00 GMT



Neto brings enterprise level inventory costing functionality to SMB retailers and wholesalers

Traditionally small to medium sized retailers and wholesalers have relied on complex, time consuming and error prone Excel spreadsheets to manage the calculation of landed costs. Now, in just a few ...

Published:  Mon, 14 Oct 2019 21:12:00 GMT



YOTEL's top RM tip: look at your data in more ways than one!

What do you make of the move? JP: In my view, the move will benefit the hotels. This is because today the wholesalers undercut rates everywhere, including on corporate booking tools (and soon all ...

Published:  Wed, 16 Oct 2019 05:39:00 GMT



Ike Auen Distributing Joins Iowa Busch Light Wholesalers To Carry King Fundraiser Over The Goal Line

On Thursday, nine Iowa Busch Light wholesalers representing 13 different distributors announced they had come together to round a viral fundraiser up to a cool $3 million. The $2,959,336 was raised in ...

Published:  Thu, 03 Oct 2019 11:01:00 GMT



Canadian Wholesalers Post Fastest Gain Since 2016 on Drugs, Cars

Receipts at Canadian wholesalers climbed 1.7% in July, the fastest gain since December 2016, Statistics Canada reported Monday in Ottawa. Economists in a Bloomberg survey had forecast a flat reading ...

Published:  Mon, 23 Sep 2019 08:40:00 GMT



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