Wholesale Dropshipping for Beginners
Dropshipping is an activity that occurs between a business and a distributor or manufacturer. It occurs when the distributor or manufacturer ships goods to the customers of a business directly. This frequently occurs with companies that sell goods online.
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Purpose
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Wholesale dropshipping is a process used by businesses that do not want an inventory supply or do not have the means to maintain an inventory supply. Agreements are created between the business and manufacturer or distributor where the manufacturer agrees to ship all products ordered through the business directly to the customers.
Benefits
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Wholesale dropshipping offers benefits to the business selling the goods. The business focuses on selling the goods without the worries of product development or order fulfillment. The business also does not need to maintain an inventory supply, which means the guesswork of ordering goods is eliminated. Another benefit is the availability of new products. As soon as the manufacturer has new products, the business can sell the products on their website.
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Details
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The manufacturer or distributor shipping the goods typically charges a shipping fee to the business for every shipped package along with a handling fee that covers all of their costs. The dropshipping company bills the business for the cost of the goods plus shipping and handling fees.
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