That depends on a number of factors, including your budget, the amount of space you have to store inventory, and the amount of time you want to devote to your business.

The advantages of buying merchandise from a wholesaler are:

  • You will find a wider range of products and get lower prices. Most dropshippers get their goods from the same wholesalers you can do business with.
  • It is easier to develop a relationship with a wholesale company since most will assign a sales rep to your account.

The disadvantages of buying merchandise from a wholesaler are:

  • Most require a business license and tax ID.
  • Most will not dropship for you. All purchases are shipped to you.
  • Most will not sell you one item at a time. You will be required to purchase by the case, the pallet, or even the truckload.
  • Most have minimum purchase requirements, i.e. a minimum order of $200 or 12 cases, etc.
  • If you buy in bulk you will need a place to store your inventory
  • You must handle shipping yourself.

While it appears that there are more disadvantages than advantages to doing business directly with a wholesaler, the opposite is actually true.

The fact that you can get a better selection and lower prices far outweighs the disadvantages, but again, this decision should be based on your particular situation.

Many sellers are building good, profitable businesses without ever signing on directly with a wholesaler. You can, too.