A Good Wholesale Dropshipper Maximizes Your Profits and Offers You Unique Products



A good wholesale dropshipper helps you meet two important objectives as a seller of hard goods— buy for less so you are competitive, and sell something unique.

When you use a wholesale drop shipper for your online store, you don’t have to stock products or ship them. This frees you to focus on writing about and displaying your products online. However, two caveats are in order. First you want to find a wholesale drop shipper. And second you’ll want to find at least two of them so that you aren’t dependent on only one source for your products.

What are the differences between a dropshipper and a wholesale dropshipper? Lets see…

Dropshipping

Dropshipping is a convenient way to get started in the world of ecommerce. The dropshipper takes care of stocking and supplying the products and doing the inventory. You promote your products and then order them from the dropshipper, who then ships them to the buyer.

When you do the work of promoting the product, you are an affiliate—one monetization model. And at the same time you are in the business of selling hard-goods—another monetization model. You should promote high margin products with dropshipping, and low margin products through affiliates.

Lets take a look at the dropshipping process from start to finish:

  • First, you promote and sell the product online.
  • A customer visits your site, likes the product, and buys. You process the payment.
  • You then forward the customers’ order to the dropshipper.
  • The dropshipper packs the product and ships it off to the buyer.
  • You pay the dropshipper their fee.
  • The customer gets the product and loves the great deal she got.
  • You keep the profits!

Advantages of Dropshipping

Here are some advantages of using dropshippers:

  • Your profits might be higher with a dropshipper. Of course, this depends on what fees they charge. But you typically earn 5-15% commissions on hard goods sold you sell through an affiliate program, while you can earn more than this through a dropshipper.
  • Dropshipping can give your business an advantage, because many products that are commonly offered through dropshippers are not normally available online.
  • You get to pick the prices for your products. This leaves you with a lot of options for expanding your business. Selling a product at an unusually low price will draw you more customers.

Disadvantages of Dropshippers

Consider some of the disadvantages of dropshipping:

  • You have to learn how to process credit card payments. And you have to take care of customer relationships and complaints.
  • Your business has to be registered as legitimate business through your state. Why? Because most dropshippers won’t do business dealings with people who are not a registered company.
  • Many dropshippers only do business with people who live in the U.S.

Difference Between Dropshippers and Wholesale Dropshippers

A wholesale dropshipper is a wholesaler who supplies and ships your product without a middle man! Wholesale dropshipping is usually similar in price to any average wholesale supplier. You make your profits on the difference between what the wholesaler paid for the product, and the price you buy it for.

On the other hand, a dropshipper is a middleman—he purchases the products from a wholesaler and then dropships them. His prices tend to be more expensive than wholesale dropshippers, with a markup of twenty to thirty percent. On the other hand, wholesale dropshippers charge a smaller markup fee of five to ten percent to pay for handling costs.

Choosing the Perfect Wholesale Dropshipper

Make a list of wholesale dropshippers that you can contact about purchasing products. Only write down wholesale dropshippers who have the products you are interested in selling. A Google search can help you find some potential companies to work with.

Put pricing info on your list too, so you can find the company that offers the best prices. You could use a spreadsheet document to sort the companies and prices. Be careful when selecting a wholesale drop shipper. A good dropshipper should only charge you for products you actually sell. Stay away from wholesale drop shipping companies that charge you a membership or monthly fee. A legitimate and trustworthy wholesale drop shipper should not have to charge membership fees in order to make a profit. However, some companies charge a small sign-up fee to detract people who aren’t really serious about making their business successful. A good wholesale drop shipper should also have warranties and a good return policy that they stand by. Double-check to make sure that it actually is a wholesale dropshipper.

Good wholesale drop shippers must have a nearly limitless supply of products. Also, they should not charge extra shipping fees. Some dropshippers do, but that’s a warning sign that their business is not well run.

It’s very easy to get in and out of the dropshipping market. As a result, dropshipping companies will sometimes close their business and start a new one to cover fraudulent activities. So be sure to check how long the company has been in business.

Test the dropshipping company’s customer service before you sign up. How? Email support and act confused about something in order to see how well they respond. This way you can analyze their customer service. This will help you decide whether or not this is a company that you want to work with.

Do Your Research

Do lots of research on the company you are considering. Is it reliable and trustworthy? Is the company a member of the Better Business Bureau?

Do a Google search for the company and read online reviews and complaints.

Do lots of research on profits. What are the prices like? How much can you expect to make? This can be hard to figure out, but it’s very important.

Join some dropshipper directories and forums to get more info about prospective companies.

Take a look at The Drop Ship Directory by World Wide Brands. It’s a good place to start your research. This site gives you lists of products that you can drop ship, plus general drop shipping info. In addition, World Wide Brands also has the Light Bulk Wholesale Directory. This directory gives you a list of cheap wholesale dropshippers. These are dropshippers who don’t require that you spend a lot of money to get your business started.

Find the locations of the companies you are researching and read their policies. World Wide Brands has lots of good research materials and product resources. Every dropshipper in their directory has been researched to determine that they aren’t scams. World Wide Brands is expensive, but it’s worth it and there are no monthly fees for membership. It’s the very best source for wholesaling online!

Chris Malta, the founder of World Wide Brands, helps you wade through the many different wholesale drop shipping options on the net to find the right dropshipper for your business! His services are superior and he can help you eliminate the scams. Consider trying his Marketing Wizard service. He also has a free e-book to help you find what products sell well online. Chris offers the following tips to help you get started:

  • Avoid selling products that are trendy and “of-the-moment”. Instead, sell reputable, high demand products that have been around for a while.
  • Be unique—stand out from the big retail stores by offering unique or inexpensive products. You can’t compete with big retailers, so don’t even try.
  • Your products do not have to be the cheapest available in order to sell. Lots of people will buy slightly more expensive products for a variety of reasons. Your product might be more available, or convenient despite a higher price.
  • Include shipping costs in the price of your product. Shipping is determined by the weight of the product, so check out UPS’s shipping calculator. Try typing in a starting point zip code at one end of the country, and an ending point zip code at the other end. Then subtract fifteen percent from the price the shipping calculator gives you. Use that number as a guideline for flat rate shipping. The more practice you have with this, the easier it’ll get!
  • Avoid promoting large, heavy items that are difficult to ship. This can cause you to lose money on shipping.
  • Dropshipping works best if more than one distributor at locations throughout the country sells your products.
Two other drop shippers that are worth consideration are Doba.com and Salehoo.

Advantages of Doba.com

Doba is easy to use and the site is easy to navigate through. Products are easy to find, purchase, and set up for sale. You can also use Doba to sell through eBay, which will make your job a little easier! It’s easy to become familiar with Doba, so you can get started quickly. They also offer many tutorials and educational materials to get you started.

Disadvantages of Doba.com

If you really want to succeed using Doba.com, a lot of research is necessary. If you don’t want to do the research, don’t do Doba…you will not succeed. You can’t just throw their products on eBay and expect them to sell. Their prices cannot compete with eBay’s. Foreign knock-offs can be cheaper too. So you can expect that some people will think Doba is much too expensive. Yes, they do offer some of the lowest wholesale drop shipping prices on the market. But they still can’t compete with others. If you have found a Doba product that sells well, look into getting that product somewhere other than Doba.com.

It’s important that you do your own Doba review and use their free seven-day trial. It is different from many dropshippers, and you can sell anything from their catalog. Even though they have everything right there you still need to do your research.

What’s Good and Not So Good About Salehoo

The Pluses Salehoo offers big, cheap bonuses and there are no monthly fees. You can start looking at products and suppliers right away. Plus, their prices are good and they have excellent customer service. It’s a good starting point for first-time dropshippers. They will honor their guarantee and give you a refund if you aren’t happy with it.

The Minuses Salehoo does not have a lot of educational materials to help you get started with dropshipping. But they do have a forum, and interviews and training at salehoo-bonus.com. It is also not very advanced. Full time dropshippers might want to use a more advanced company later on.

Do your research before you sign up for anything and work only with reputable companies. This will ensure that you have the best chance at success with wholesale dropshipping!


Return from Wholesale Dropshipper to Internet Auctions

Return from Wholesale Dropshipper to Promote Online Store