Wholesale DropShipping

The wholesale dropshipping business model is ideal because it requires no handling of inventory, warehouse space, shipping/receiving or product returns.

The wholesale dropshipping business model is ideal for selling on eBay or creating your own ecommerce store, but the real beauty of dropshipping is that product distributor takes care of all the shipping for you.

You as the dropshipper buy wholesale and you sell retail and rather than ordering stock in bulk, the stock remains with the distributor until you make a sale.

With Wholesale dropshipping there are little to no start-up costs and virtually no risk involved, as you won't need to invest in bulk items and there's no inventory to maintain, which means savings for you.

Dropshipping is slightly more expensive than buying in bulk, that's because a dropshipper will add $2-$5 dollars onto the cost of the item to cover their costs of processing the item, but for most dropshippers that's an easy price to pay to avoid the hassles of inventory and shipping to their customers.

One thing to keep in mind is that staying competitive in high profile categories like electronics and clothing is a lot easier if you stick with niche markets.

For example, selling strictly Gucci bags as opposed to selling all brands of bags will be more profitable online.

5 Steps to Wholesale DropShipping

Step 1: Find a wholesale dropshipper

Finding a wholesale drop shipper isn't hard but the choices can be overwhelming.

You can start your search by either Googling your product name + "wholesale dropshipper" or you can check out online wholesale directories.

If you're looking to sell products on eBay, check out Doba - they're the leading eBay drop shipping supplier.

Step 2: Set up an account with your dropshipper

You may have to pay a small account set up fee - while this isn't always ideal, it is common practice for dropshippers. You should be weary, however, of suppliers who insist on you paying monthly or annual fees.

Different dropshippers have different types of accounts that you can set up. You can either credit your account and use the credit to pay for items you purchase for your buyers or you can pay as you go and use the money you receive from buyers to purchase the items.

Step 3: List the items you wish to sell on your website, estore or online auction site such as eBay.

You can list as many items as you like, seeing as you don't have to pay for them until they sell! Use the photos and item descriptions that your dropshipper supplies you.

Step 4. When the item has sold and you have received payment from your buyer, log on to your suppliers web site and purchase the item you have sold and have it sent out to your buyers address.

If your dropshipper does not have an ecommerce site set-up which you can buy directly from, simply send them an email with the details of what you want and where to send it to.

Step 5. It's all up to the dropshipper now.  They will package and ship the item out to your buyer.

You decide which products you want to purchase at wholesale and you sell them at retail. There's no handling or maintaining the products because the wholesale dropshipping supplier does that for you.

The advantages of wholesale dropshipping:

• Low capital to start. You can become a retailer without needing to invest large amounts of money which provides little risk to you.  
• No Inventory. If a product doesn't sell, not a problem. You didn't have to buy it.  
• No Minimum Order Requirements. You can dropship as little as 1, 2 or 3 items at a time.  
• You purchase products at wholesale prices and set your own retail prices.   
• Your dropship supplier picks, packages and ships the orders to the customer and most often with your business name on the merchandise.  

Wholesale dropshipping Tip:  Include the cost of shipping in the price of your products and advertise 'free shipping'. 

Free shipping is a great selling point.