Welcome to the wonderful world of online selling. You may have heard that fortunes are being made by people who are working out of their basements with only a computer, a fax, and a telephone. This is sometimes true. There are, however, also very large companies who are conducting complex business operations and who are also making a reasonable profit. Both ends of that spectrum often use the services of a dropshipper.
Wholesaler Dropshippers who work with internet vendors often carry impressive product lines that can contain almost any product you can think of. One online dropshipping company advertises a product line of over 50,000 items separated into virtual warehouses based on type, cost, etc. In order to gain access to these warehouses, a vendor must pay a very small monthly or annual fee to this wholesaler. The wholesaler, however, will sell his products to the vendor at wholesale rates.
It’s a simple fact that inventory in any sales venture can be a huge investment. Not only does the vendor have to deal with tying up his capital to purchase the inventory, he also must pay for warehouse space and insurance for whatever he is storing. By using the services of a wholesale dropshipping company, the vendor can avoid all of those costs. At the same time, the vendor can enjoy the advantages of having an entire inventory, packing, and shipping mechanism at the other end of a fax.
The dropship process is fairly simple. It has been around for a long time and has been used for decades by major retailers. You may have even purchased an item from a catalog. When the item was sent to you, it may or may not have come directly from the retailer whose name was on the box. Unlike a regular shipment from a wholesale warehouse, a dropshipment is a shipment of specific goods shipped directly to a single customer who ordered and paid for them in advance. Dropshipping is a huge benefit to the vendor who never actually purchases the items until he has already been paid for them.