Posts Tagged ‘wholesale’

Dropshipping Business - The Pros Anc Cons

Wednesday, August 19th, 2009
by Nikki Davila

In the drop shipping business model, the drop shippers take care of commodity storage and shipment on behalf of the sellers while the sellers should pay him for his service.

This is an ideal method to e-commerce sellers who do not want to deal with storage damages etc. in a business. Identifying your potential buyers is the first thing you would want to do if you want to get in to dropship business.

Email marketing is a good strategy that can be employed to market dropship business. SEO also known as search engine optimization, blogging and starting off a website with pictures and catchy descriptions are also alternative ways for marketing your dropship business. While reliable partnerships with suppliers and wholesalers will be essential to dropship business, you will need to make contacts with reputable companies in the field.

As mentioned above, the advantages of a dropship business are obvious. First, you do not have to shoulder the risk of unsold inventory. Second, you do not need to hold the responsibility for damage to the goods during storage or shipment.

Dropshipping business is also different from affiliate marketing in that the dropshippers get involved in almost the whole transaction process. Instead of receiving a commission for each sale, the dropshippers are usually left with bigger profits because they almost always deal with bulk products.

There are also disadvantages to this business model, too. The biggest headache for the sellers and dropshippers is to deal with the numerous scams out there. For the sellers, it is a bit of challenge to identify the reliable dropshippers. At the same time, the dropshippers need to work out how to prove themselves to be the genuine ones so that they can win business.

It is best to work out an agreement between you and the dropshippers in advance, to prevent any problems in the future. If you have buyers from outside the US, make sure that the dropshippers would ship the goods to different countries around the globe.

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Wholesale Dropship Suppliers and Resellers

Sunday, May 3rd, 2009
by Mark Roberts

Wholesale dropship suppliers or a wholesale dropship warehouse can help you stock an online store without having to actually carry inventory yourself. It is one of the latest trends for turnkey web sites and online auctions and for people or webmasters or people who want to make money online to have a variety of inventory on their online store.

Hundreds of dropshippers exist online and searching for the perfect one can be time consuming. A few suppliers may indicate they are wholesale sources but are not. When looking for a recommended company that delivers a great product research forums.

A reputable company may have bargains near wholesale prices but keep in mind you are paying extra to account for the cost of storing, shipping and handling by the dropship company. A real wholesale manufacturer will usually want a tax ID to purchase products at wholesale.

When orders are placed through a dropship supplier they process the order and ship to the purchaser. You company label with your address can be part of the packaging to make it look like it shipped from your company. It can also be arranged to have them process returned items.

Visit related forums and user groups when researching wholesale dropship suppliers. Try testing the supplier if you can have a friend make a test purchase on your behalf.

Ignore old wholesale dropship supplier lists they are often outdated and phone numbers that no longer connect you time chasing down the products are not worth it. Focus on finding a wholesale dropship directory. A directory will often have thousands of products ranging from clothing, shoes, ceramics and pottery and it may include new products and closeout items that are at the cheapest possible prices you may find online.

To make money online with a web site or online auctions consider wholesale dropshiping or dropshipping directories to find the cheapest prices and reputable dropshippers. A good dropship directory sometimes has a rating system for the quality of its merchants. Take your time and research because your success depends on it.

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Wholesale FAQ: All About Reselling Items

Wednesday, April 1st, 2009
by Wayne Erickson

I’ve got items to resell, so how do I find customers?

It is best to have a hierarchy of categories on your site for items you are selling. For example, if you are selling soap, you may have a sub-category named “soap.” However, in order for people to find that item, you may need to also list the same item in a more general category such as “cosmetics” or “skin care.” Think how you can help people find items in your online store.

Should I charge a certain percentage above my wholesale price for items I resell?

It may depend on the price you paid for the item. A common mistake is to resell an item for a very small amount over their cost. If you make a habit of this practice, your business is likely to fail. Remember, you’re in this to profit. There are many administrative costs involved in sales, and you’ll set yourself up for failure if you do not have a sizable profit.

For smaller purchases between a few cents and $20, plan on at least doubling the price. For purchase costs above $20, you should consider selling at least %40 above. For higher ticket items above $100, anywhere from $20 to 40% is reasonable.

If your price cannot be increased within those ranges for a sizable profit, you should consider re-negotiating the price with the wholesaler. Another option is to ask the wholesaler if they will consider drop-shipping for the same or similar price, thus keeping your overhead costs down.

Where do I look for photos and descriptions of wholesale items I want to sell?

Your wholesale can usually provide you with images. However, they will not necessarily be included, and you may need to request them. Call the support phone number or use the support email. Most of all, get to know your sales/support person. You will often find that you are able to acquire images and other perks due to your relationship. If you belong to an online wholesale membership, they are usually included in an online catalog. When you request images, your wholesale supplier will usually send you a CD containing images for your use.

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