Perhaps you want to make extra income from home and are thinking about trying something with eBay or Amazon. You have found that there are many wholesale dropshipping companies, and you want to know which ones are legitimate, which are reliable.
Although we think online wholesale and dropship directories can be useful and in many cases a good idea, the fact of the matter is you can often find a wholesaler/dropshipper through you own efforts. However, you have to know what you want to sell. If you have a product in mind, you can now contact the manufacturer to find out if they can distribute directly to you. If not, you need to find out who their authorized wholesale distributor is. Wholesale directories such One Source or Salehoo are not scams and can provide you with a ready source of product suppliers. However, as we mentioned, you can certainly locate wholesalers through your own efforts.
When contacting a wholesaler or arranging distribution from a manufacturer, you will also need to provide proof that you are a business. That is, you must have a business license or business permit, or Federal tax I.D (EIN), or a state sales tax permit. Many businesses on the Internet either claim to be wholesale businesses or strongly imply they are wholesale businesses, but if they do not require a sales tax permit, they are not a wholesaler. That doesn’t necessarily mean that they don’t have good prices or are not legitimate, but it does mean that they are not true wholesale businesses.
Reasons for being skeptical about dropshipping are:
1) You are rarely getting wholesale price. The dropshipper is doing most the work for you(packaging, shipping, etc) and that is costing them more than just selling it in bulk to a retailer to do all that stuff.
2) Since you aren’t buying in bulk you arent getting the cheapest rates. (the more you buy the cheaper the price per unit). Also, consider, if you are using a large warehouse dropship distributor such as Doba (owned by eBay, by the way), and are selling on eBay along with others also dropshipping from Doba, you are all in competition with each other.
3) It is important to be sure the dropshippers inventory is reliable so that you are not stuck with orders for out of stock products, or defective products, or products that are otherwise different from what you advertise.
However, with a reliable dropshipper, there are advantages:
1) Packaging, shipping, and warehousing is handled for you.
2) No up-front cost. You order simply what you sell. You determine the selling price.
3) Works will with ecommerce.
In the end, regardless of who you choose as a product source or how you find your sources, you still have to apply due diligence to make sure they are reliable and will be the solution you need for your business.
We have had very good “luck” with one particular online directory for wholesale, dropship, liquidation and closeout goods. If interested, take a video tour here.
Tags: Wholesale Products, Wholesale List, DVD Wholesale Distributors
DVD Wholesale Suppliers
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