Dropshippers

Why Dropshippers do work?

Dropshippers do all the product sourcing, warehousing, inventory maintenance and order shipping for you. The disadvantages are that your dropshippers are wholesalers that only carry the types of product and the quantity that they want. They should only charge you a very low dropshipping fee or nothing at all. You can only offer what they are carrying, just like any other competitors of yours who use the same dropshipper. The ideal dropshippers would offer you a true wholesale price that you can't find lower anywhere. Some companies even provide product descriptions and photos for your web listings. Pay carefully attention to these extra fees, as they could add up and eat away at all of your profit. More importantly, you have to rely on them to ship out your product which means it can take a day, or so, more, for them to ship out your orders than if you do it yourself. The major benefits are that you don't need to buy any inventory or incur any inventory and fulfillment related expenses. Some companies try to make more money from you, by charging you higher shipping rates than standard carrier rates.

Why Dropshippers don' t work?

Make sure that you eliminate the middlemen and go directly to the source, such as the Wordwide Brands Directories. These companies often advertise aggressively on many sourcing information pages and jam the search engine results. When you make a sale, you would typically go onto their website and place an order. They in turn, redirect your order to the real (or actual) dropshippers, who will ship the product directly to your customers. The way they work is that they sign up with a small number of the large and real dropshippers, which you can find, yourself, through methods described on the previous Wholesale Distributors page. They sell you a monthly membership for $30 a month, or so to access their catalog. These middleman dropshippers not only make money from you by charging a monthly fee, but then rip a percentage of profit from each of your orders. So, with your other expenses, you'll make so little profit, that you might rather be working for somebody else, just to cut the hassle.Be aware of the many middleman Dropshippers that plague the Internet today. In the end, they've left you with only a very small margin. Then they compile and maintain a virtual inventory catalog of the dropshipper's products.