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Dropshipping Wholesaler - What Potential Resellers Must Know

Author: DavionWong
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If you run a reselling business on the web, you know that a dropshipping wholesaler you work with is largely responsible for your enterprise's success or failure. Both great benefits and great risks are involved in the business you do with a dropship company. But for many small resell businesses, this is the only opportunity to boost their revenues without much effort and money investment.

There are many advantages in working with a dropshipping wholesaler.

1. As a reseller, you do not hold any inventory. This means that you need not worry about whether the products sell well. If they sell well, order more. If they do badly, stop the orders!

2. You need not pay for the storage of the products. There is absolutely no need to have a holding area for the merchandises.

3. If you want to sell more than one product, by all means do so. You can switch between products and discard poor sellers anytime you wish.

4. You can offer a wide product mix with many similar or complementing merchandises. For example, if you are selling cell phone batteries, you may consider selling cell phone covers as well.

5. You do not have to hold any surpluses. Since you do not have any inventory at all, you would not incur any losses like the manufacturers who may have to stomach losses whenever products become obsolete or expire.

6. The flow of cash starts with the very first item you sell. In a simplified way, the process looks like this: the buyer pays you, you pay to the dropshipping wholesaler, and the difference between the two prices makes your profit.

7. No packing and shipping is required on your part. This is a money saver since the dropshipping wholesaler takes care of these. If you have to do these yourself, it means more time, effort and money wasted and your profits would be razor thin.

8. With most dropship suppliers you qualify for the wholesale price without the need to place a minimum order.

However, like in any business there are certain risks involved as well:

1. Since you are not responsible for the delivery, you cannot be able to influence the process. Should there be delays, you are the face who is getting all the blame from the customers.

2. If you chose an unreliable dropshipping wholesaler, there is a likelihood that the merchandise is of poor quality, or the delivery process may not be up to standard. Your consumers get their products late or spoilt and your reputation at the auctions would be tarnished. You should know how important customer feedback means to your business.

3. You are normally not informed when a certain product is sold out, so you may continue to offer it in your shop until you get angry inquiries from your customer on the reasons why the purchase hasn't arrived yet.

As you can see, selecting a dropshipping wholesaler to partner with is not as easy as ABC. Sometimes, you have to find out from different resellers or do a few trial purchases in order to know if the overall quality and service is reasonable.

Discover more useful tips on finding a good dropshipping wholesaler from my income blog. Also find out which supplier is offering quality service and great products at huge bargains.