How to Make Money by Wholesale Dropship

During the last decade the internet has reached the homes of most people around the planet, and it has revolutionized the way we buy and sell products. During that time people have been looking for ways to make money from internet trading, and one of the most promising ways is to enter into wholesale dropshipping. By using a wholesale dropship you can buy and sell items and make money online, but how?

Firstly it is important to understand what a wholesale dropship is. Dropshipping is a new and exciting way to conduct ecommerce and works by a dropship company buying goods directly from the manufacturer, at pre-sale rates, which it then stores. Clients of the dropship company can then sell the goods they have in stock and make the after sale profit, before giving a percentage to the dropship company of course.

Save on Shipping

Perhaps the major advantage of using a dropship company is the fact that they handle the goods, and they distribute the goods. As the seller you do not have to worry about seeing the products and more importantly shipping them, it is a business model that allows you to profit but never have the worry of whether the goods make it to their destination, because the expert dropshipping company will do that for you.

Basically the dropshipping company becomes your personal stock holder and distributer, and it is possible to build a strong working relationship together. If this does indeed happen you can get your distributer to place your company logo onto boxes, which further advertises your brand and products.

Get more Customers

If you are an online seller then you will likely have a website that advertises your goods, and using the wholesale dropship model you will be a fully-fledged ecommerce store. Search engines love a quality ecommerce store, and you could well rank highly on Google search which ultimately will bring more customers, more sales, and more revenue.

Easy to do

Everything about the wholesale dropship business is easy, from not handling goods, to not dealing with distribution. Also it is very easy to find a droppshipping company, in fact there are hundreds of them available, and all offer you the chance to distribute goods worldwide for profit without ever having to deal with the stresses of normal business practises.

Think of wholesale dropshipping as a different kind of selling, you are like the checkout assistant, you just deal with the money and the customers while other take care of the stress, but the big difference is that you will be reaping a great reward. This is still a relatively new way to make money online so there is still plenty of money to be made in a growing market that is still open for new businesses.

Dropship Wholesale Distributors

Assuming you have conducted a search for your potential suppliers either from the search engines or local newspaper ads and now have a list on hand. The next task is to evaluate each of these dropship wholesale distributor according to some criteria.

Dropship Wholesale Distributors Criteria 1 - Established and Reputable

It is important to work with dropship wholesale distributors with a good reputation. Honesty and reliability are two key business principles to adhere to in this wholesale business. If you are sourcing from overseas, you may not have the luxury to converse face-to-face with your suppliers. The only handles you have are their track record. You may check out their business practices at Better Business Bureau if they are located in US. If not, find out which are the national or government agencies that govern business registrations and licensing. Drop a note to find out if there have been complaints lodged against them. Of course, there are other avenues to find out more such as work-at-home or auction forums. These are great places to educate oneself on the reseller business and be alerted to scams.

Dropship Wholesale Distributors Criteria 2 - Overseas Dropshipping

Depending on your target customer base, whether it is local or worldwide, your needs can be different. It is crucial to clarify this with the dropship wholesale distributors. If your market is in US and your dropshipper operates there, you would not have any problem. However, you may encounter shipping difficulties if your dropshipper cannot make deliveries to your buyer destinations. Find out where the dropshipper ships to and establish where your market is. But one point to note: if you intend to expand your business and make more sales, it works well to find wholesale distributors who dropship internationally.

Dropship Wholesale Distributors Criteria 3 - Pricing

Never pay too much or too little. If the wholesale distributor charges an exorbitant rate, avoid it. There are many dropship wholesale distributors who are willing to settle for lesser. While this is true, you also must not fall for the cheapest deals either without careful consideration. There must be a reason for the depressed prices. Ask the dropship wholesale distributor and make sure you are satisfied with their answers. Sometimes, the poor product quality could be the reason. Expect a reasonable discount of at least 15% off the retail price when you deal with the dropship wholesale distributors.

Dropship Wholesale Distributors Criteria 4 - Credit and Payment Conditions

Every business owner needs to sort this out with their suppliers. It is no different for you as a reseller. Remember to ask several key questions like: Do you have to pay them upfront per sale? Accumulate and pay monthly or quarterly? What are the modes of payment such as whether they accept paypal or credit cards? Are they offering a 30-day or 60-day credit term?

Once you have built trust and rapport with your dropship wholesale distributors, you can negotiate for longer credit term, etc so that you can save on payment transaction costs which can add up.

Dropship Wholesale Distributors Criteria 5 - Product Quality

Product quality is of utmost importance to your reselling business. If your wholesale distributors play you out by delivering inferior-quality merchandise or worse still, send bootleg products to your customers, the hard-earned reputation you have painstakingly built over the years goes down the drain. Never allow this to happen to you. If you are dealing in bulk which you should, request for a free sample. Think long-term and it makes sense to at least have a feel of the product before you sell it to anyone, especially if the item commands a higher profit margin such as MP3 players. You may even consider ordering one for yourself just to test it out.

You can run a successful business just by reselling products supplied by dropship wholesale distributors. Learn more tips about sourcing for wholesale products at my blog and find out where business owners like you are getting their supplies.

Real Wholesale Dropship Companies

Real wholesale dropship companies are harder to find because no one wants to share their secret little niche wholesaler with everyone, they think by doing this, they'll lose their bread and butter. While this may hold some validity, we at Buy Wholesale Directory have a different take on the situation. We believe that wholesale dropship sources should be available to all, at no cost. With the internet as vast as it is, finding these wholesale dropship companies can be a pain, but with time and research, you should be able to find a wholesale dropship company that can make your business grow and be profitable for you.

The trick to finding real wholesale dropship companies is to know the warning signs of the middlemen. These middlemen have one common denominator, and that is to take your money while you do most of the work. Below are some tips to look for when choosing a wholesale dropship company.

Is there any fee? If a wholesale dropship company charges a fee for membership, this may be a sign that it is not a real wholesale dropship company. Some real wholesale dropshippers do charge a fee for membership, but it is usually to cover credit apps, processing, etc. which will not be a recurring fee.

Phone number and address available? A true wholesale dropship company will list phone numbers and their physical address. If they have a warehouse that contains 50,000 products, odds are there is an address for that warehouse.

Is their products rehashed images from some other website, or are they original. When a company has physical possession of a product, odds are that the image they use is their own, and not copied from some other location. Middlemen may use images of products copied from somewhere else on the web, simply because they don't have possession of the product they intend to sell to you. They are using dropshipping also, which will cut into your profits.

While there are other warning signs to look for when choosing a real wholesale drophip company its best to remember these tips when choosing a wholesale dropshipper. Buy Wholesale Directory lists wholesale dropship companies and does not charge a fee for their service, which makes finding a wholesale dropship company easier.

Other tips for wholesale dropship companies include making sure you have a tax id. True wholesale dropshippers will need your tax id to do business with you if they are a true wholesaler. Not having a tax id will definitely make your hunt for a real wholesale dropship company harder. Tax ids are not costly and only require a bit of time to complete the necessary forms and reports. In short, get a tax id, and find true wholesale dropship companies to support your new business.