Dropshipping and Dropship Wholesalers

What is Dropshipping and Who are DropShip Wholesalers ?

Dropship wholesalers are people/organizations that help people utilize the phenomenon of drop shipping. Wikipedia defines drop shipping as :

"supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to dropship wholesalers, who then ship the goods directly to the customer . The retailers make their profit on the difference between the wholesale and retail price."

In short, this means that the dropship wholesalers take care of the entire headache of packaging and shipping the product to the users while you just have to list the products for sales on sites like eBay.

Drop shipping can occur from dropship wholesalers when a small retailer who typically sells in small quantities to the general public receives a single large order for a product. Rather than route the shipment through the retail store, the retailer may arrange for the goods to be shipped directly to the customer from dropship wholesalers.

Benefits that Dropship Wholesalers provide:

The two main benefits of drop shipping from dropship wholesalers are - no upfront inventory to purchase and a positive cash flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a credit card or credit terms. Therefore, there is a period of time in which the seller has the customer's money, but has not yet paid the wholesaler.Scams

Drop shipping has also featured prominently in some Internet-based home-business scams. Scam artists will promote drop shipping as a lucrative work-from-home opportunity. The victim who buys into this scam will be sold a list of businesses from which drop-shipment orders can be placed. These businesses may not be wholesalers, but other businesses or individuals acting as middlemen between retailers and wholesalers, with no product of their own to sell. These middlemen often charge prices that leave little profit margin for the victim, and require a regular fee for the retailer's usage of their services.

Trusted Sources

While looking for trusted sources, make sure that the source has some sort of a certification that proves that the dropship wholesalers are secure and trustworthy

Salehoo is one of the best sources of dropship wholesalers and is widely trusted as well. Salehoo is a trusted member of the eBay Developer's program. Additionally, Salehoo has been certified for a high level of trust by America's BBB (Better Business Bureau). Salehoo's report can be checked by clicking here.

So if you are interested in getting a list of dropship wholesalers, Salehoo is one of the best sources.