Dropshipping Information

With online sales and mail order merchants increasing, dropshipping has become a cost viable shipping alternative that retailers are turning to more and more, according to the Wholesalers Network website. A wholesale dropshipping company will supply, package and ship the product(s) sold by online and catalog merchants.

Wholesale Companies

A wholesale dropshipping distributor will ship products directly to consumers from their own inventory for retail businesses. They may or may not be manufacturers of the products. A mail order catalog company or an online retailer do not need to maintain an inventory. The company contacts a dropship wholesaler who has an inventory when a customer places an order. The product is then mailed to the consumer by the wholesaler, who puts the company's invoice in the box. This helps to streamline the ordering process and serves the consumer with a quick response.

Dropshipping Benefits

Profitable and rewarding, dropshipping benefits both the retailer and the dropshipper, according to the wholesalersnetwork.com website. Online retailers save the cost of purchasing and storing merchandise by not keeping an inventory. The wholesale company profits by selling more merchandise from sales by the mail order companies and online marketers.

Home-based Dropshipping

By using dropshipping companies to supply and deliver products, many home-based businesses have become highly profitable, according to the website wholesalersnetwork.com. Wholesale companies and home businesses establish a working relationship that benefits both parties financially. The home business offers the products for sale and pays the wholesale cost of the product and dropshipping postage costs.

"Blind Shipping"

Dropshipping may also be known as "Blind Shipping" wherein there is no return address on merchandise shipped to the consumer or the return address may be that of the retailer, not the dropshipper, according to the website wholesalersnetwork.com. Contact information and business details of the wholesaler may be included inside the package. Dealing with consumer returns by the wholesale company also makes it cost effective for retailers, and is indicative of a good wholesale company.

Dropshipping Cautions

With the increase of Internet sales, dropshipping companies have also become numerous, according to the website chamberofcommerce.pl. If an individual is contemplating starting a home or online business he should beware of offers that sound too good to be true made by some companies in the dropshipping industry, as they can take advantage of the inexperienced or naïve. Some dropshipping companies may charge exorbitant prices for their dropshipping service. The retailer must research the various dropshipping companies that can supply the products he wants to sell, and compare prices for their dropshipping services.

References

• Wholesalers Network: Dropshipping
• Chamber of Commerce, Poland: Dropshipping