The wholesale dropshipping business model is ideal because it requires no
handling of inventory, warehouse space, shipping/receiving or product returns.
The wholesale dropshipping business
model is ideal for selling on
eBay or creating your own ecommerce store, but the real
beauty of dropshipping is that product distributor takes care of
all the shipping for you.
You as the dropshipper buy wholesale and you sell retail and rather than ordering
stock in bulk, the stock remains with the distributor until you make a sale.When a sale is made you notify your dropshipper and they pack up the item and send it straight to
your customer. Most dropshippers will also send the package with your company label on the
With Wholesale dropshipping there are little to no start-up
costs and virtually no risk involved, as you won't need to
invest in bulk items and there's no inventory to maintain, which means savings for you.
Dropshipping is slightly more expensive than buying in bulk, that's because a
dropshipper will add $2-$5 dollars onto the cost of the item to cover their costs of processing the item, but for
most dropshippers that's an easy price to pay to avoid the hassles of inventory and shipping to their
One thing to keep in mind is that staying competitive in high profile categories
like electronics and clothing is a lot easier if you stick with niche markets.
For example, selling strictly Gucci bags as opposed to selling all brands of bags
will be more profitable online.
5 Steps to Wholesale DropShipping
Step 1: Find a
wholesale drop shipper isn't hard but the choices can be
You can start your search by either Googling your product name + "wholesale
dropshipper" or you can check out online wholesale directories.
If you're looking to sell products on eBay, check out Doba - they're
the leading eBay
drop shipping supplier.
Step 2: Set up an account with your dropshipper
You may have to pay a small account set up fee - while this isn't always ideal, it
is common practice for dropshippers. You should be weary, however, of suppliers who insist on you paying monthly or
Different dropshippers have different types of accounts that you can set up. You
can either credit your account and use the credit to pay for items you purchase for your buyers or you can pay as
you go and use the money you receive from buyers to purchase the items.
Step 3: List the items you wish to sell on your website, estore or online auction site such as eBay.
You can list as many items as you like, seeing as you don't have to pay for them
until they sell! Use the photos and item descriptions that your dropshipper supplies you.
Step 4. When the item has sold and you have received payment from your buyer, log on to your suppliers web site and
purchase the item you have sold and have it sent out to your buyers address.
If your dropshipper does not have an ecommerce site set-up which you can buy
directly from, simply send them an email with the details of what you want and where to send it to.
Step 5. It's all up to the dropshipper
now. They will package and ship the item out to
You decide which products you
want to purchase at wholesale and you sell them at retail. There's no handling or maintaining the products because
the wholesale dropshipping supplier does that for you.
The advantages of wholesale dropshipping:
- Low capital to start.
You can become a retailer without needing to invest large amounts of money which provides little risk to
- No Inventory. If a product doesn't sell, not a problem.
You didn't have to buy it.
- No Minimum Order
Requirements. You can dropship as little as 1, 2 or 3 items at a time.
- You purchase products at wholesale prices and set your own retail
- Your dropship supplier picks, packages
and ships the orders to the customer and most often with your business name on the
Tip: Include the cost of shipping in the price of your products and advertise 'free
Free shipping is a great selling point.