products. They need a product distributor to distribute
their car wax.
The President of Company X decides his business strategy will no longer be to
sell to only one large distributor. The strategy will change to recruiting a
bunch of small distributors to market the product. These smaller distributors
will be drop ship wholesalers. To make this business strategy successful Company
X will provide smaller drop ship wholesalers a price of $5 for the car wax and
the average suggested retail price is $13.99 and customer will pay for shipping
which will be fulfilled by Company X.
Company X now goes out and recruits a bunch of small drop ship wholesalers in
various regions of the country and gives them the opportunity to pocket the
difference between their $5 cost and the $13.99 retail price, a total profit of
$8.99 per sales. Best of all Company X tells these distributors that it will
ship all order and all the distributor has to do is market the product and make
sales.
As you can see being a drop ship wholesaler is very lucrative because you can
essentially just focus your efforts on selling and marketing and do not have to
worry about the messy part of shipping and fulfilling orders and best of all you
never have to stock inventory. Every sale results in a profit, bottom-line!
So what does it take to be a drop shipping wholesaler?
Really no special skills are involved. You simply have to have a little
passion for your business and go out and sell products on the web, ebay or
through mail order. On the web there are various places to get lined up with
drop shipping suppliers but make sure you pick a reputable source.
Also many of these sources offer online forums and 24 hours live support to
get your drop shipping business up and running quickly.
Overall becoming a drop ship wholesaler can be a great undertaking for your
business. Whether it is an online store or an Ebay auction business drop
shipping has many advantages you should consider for your business.
Here are some more dropship articles...
