Who are Wholesale Drop Shippers?
Wholesale drop shippers have existed for years even before the internet opened up to the wide world. Product distribution explains drop shipping so let us check out what exactly product distribution is about. In the olden days drop shipping started out as a simple procedure of getting products to the consumer. The Ajax Manufacturing company made cleaning supplies as an example and that was all that they did. The individual entrepreneur approached the Ajax Manufacture about getting the cleaning supplies in large quantities with an over all savings. The Manufacturer was happy to accommodate, as they were not in the business of selling.
The distributor then approached several retail outlet stores and offered them Ajax cleaners at a very reasonable price. In turn, the retail outlet could mark up the product and sell it to his consumer. All involved from the Manufacturer to the distributor to the retail outlet made a profit. The consumer found the product they wanted at a price they felt was reasonable.
This simple equation will help explain the above scenario.
1. Ajax Manufacturing sold products to a distributor for $12.00 a case of 12. Cost to make was .50cts per can. (profit $6.00)
2. The distributor sold the case to retail outlets for $24.00 a case. (profit $12.00)
Hopefully the information presented so far has been applicable. You might also want to consider the following:
3. The Retail Outlet marked each can out at $$3.50 a can (profit $18.00)
4. At a regular store, the Ajax cleaning products sold out at $4.50 a can so the consumer saved $1.00.
The beauty behind drop shipping is that the distributor places the order to the Manufacturer who in turn drops ships to the Retailer; therefore, the distributor does not have to buy in advance nor keep a lot of stock on hand. The process is so simple that it is hard to loose money on this type of procedure.
The invention of the internet greatly increased the business of drop shipping to a very profitable at home business. The idea of distribution started at the beginning of time with the first cave dweller trading fire for wood. For it is said without wood the fire will not remain and with out fire there is no need for the wood to remain. It takes both in order to keep one warm.
There are two types of retailers the one stocks merchandise for resale and the other stocks no merchandise is a stockless retailer. You as a drop shipper become the stockless retailer. The first type of retailer must have money to stay in business because they need to buy the merchandise, have an adequate storage place, and a retail place for sales. The second retailer only needs a computer. The drop shipper retailer opens up an Internet Store, with a shopping cart and the ability to accept credit cards. Many good distributors are willing to accept your orders and ship to the designated customer. You are not the "drop shipper" The company who supplies the products to your customer for you is the "drop shipper" "You become a Stockless Retailer". Today there are many on line Stockless Retailers and Drop Shippers you must make sure that you are dealing with real people and companies in order to prevent any fraud towards yourself and your clients. Fraud is the biggest problem you face.
Those who only know one or two facts about dropshipping can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you're learning here.
All About Dropshipping
All About Drop Shippers
All About Shipping
Drop Shippers And You
How Does Wholesale Dropshipping Work
How Dropshipping Helps A Business
How Much Does Drop Shipping Cost
How To Locate Drop Shippers
How To Drop Ship
Novelties Wholesale
The Best Place To Be Is EBAY
The Drop Shipper How They Help The Business
What Is A Wholesale Distributor?
When You Decide To Dropship
Who Are Wholesale Drop Shippers?
Who Is The Dropshipper
Who Uses The Service Of Dropshippers
Wholesale And Drop Shipper Work Together
Wholesalers Who Are The Best?
Why Are Wholesale Products Dropshipped
Why Use Drop Ship Products
Why Use Drop Shipping
Why Use A Wholesale Shipper
Why Use The Drop Ship Method?
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