Home eCommerce Blog Wholesale Dropshipper Suppliers: Everything You Need to Know

Wholesale Dropshipper Suppliers: Everything You Need to Know

Wholesale dropshippers are a very popular form of sourcing product because they allow you to pay only for the items that you sell.

It works like this: You find a dropshipper and set up an account. Different dropshippers have different setups but usually you can choose to credit your account, or, you can simply leave it empty and pay for each item as you sell it. Once you’ve created an account, all you need to do is grab the dropshipper’s provided photos and product descriptions for the items you wish to sell and list them on eBay or your website.

After you make a sale and receive payment, log into your dropshipper account, select the product you have just sold and take it through the checkout and pay for it. Enter the buyer’s address details, and the dropshipper will package it up and post it!

Basically, dropshippers take all the responsibility for handling and managing stock, saving you a heck of a lot of time!

But, because they do so much of the work for you, dropshipping is necessarily more expensive than buying in bulk. To give you a general idea, you could be paying an additional $2-$5 per item to cover the handling, postage and packaging costs.

Bulk buying seems more profitable on the face of it, but sellers often neglect to fully account for the time it takes to go and get the item, wrap it up and take it down to the post office and post it.

When all is said and done, both dropshipping and buying in bulk should be equal in cost, although many sellers prefer to buy in bulk to get the immediate profits, even though that effectively devalues their time.

Offer more choice to your customers

For new sellers the main advantage of dropshipping is the lack of risk. But for more advanced sellers, I believe that the greatest benefit dropshipping holds is the ability to offer more choice.

You may have heard the phrase ‘long-tail’, a bit of a marketing buzz-word in recent months. In a nutshell, the ‘long-tail’ means targeting the far corners of niche markets that are normally untapped by selling a lot of low-demand products. Experts have worked out that when added together, sales of low-demand products actually exceed those of single products with very high demand!

Drop shipping enables you to take advantage of that strategy very easily. For example, a DVD seller using a dropshipping supplier could promote 400,000 different DVDs! They are able to make money by selling a lot of low-demand products without any risk or storage inconvenience. This gives the DVD seller a massive advantage over regular DVD stores.

Of course, dropshipping isn’t without its risks.

Probably one of the most common problems sellers have with dropshippers is sudden stock shortages.

A sudden rush for a particular product might cause the dropshipper to sell out, leaving you in a bit of a sticky situation if you’ve got orders to fill!

Having no control over your inventory also means that if buyers ask you for a unique photo of the item (which some do after being caught out by fraud in the past), you are unable to meet their request.

This leads us to the fact that Drop shippers aren’t perfect…but if they stuff up, you get the blame. If the dropshipper packages the item poorly, causes delays in shipping, or makes a mistake with the order, then you are held responsible, even when there is very little you can do about it.

As you can see, the pros and cons are evenly weighted. Dropshipping is a very handy way to get into selling online for new sellers and it makes a great addition to other supply methods for more advanced sellers. 

That's all for this week...but look out for upcoming blog posts on how to find a dropshipper and tips for managing your dropshipper to get optimum results.

Have a great week Smile

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13 Comments Add your comment
Something I've always wondered about dropshippers.... Do you get to see the packaging and the products etc to determine the quality? How do you know whats being sent to your customers? Jay Reply
Usually you would order a sample before you signed up with the wholesaler, which will let you see the quality. It's also a good idea to order one or two of the product yourself every now and again to check up on quality. The cost is worth the knowledge you gain. Reply
I am looking for credible dropshippers from China for clothing as well as shoes ..could you list some websites for dropshippers with whom I could trust from the internet Reply
We have a number of Chinese drop shippers in the Salehoo directory. You can join at http://www.salehoo.com/ Reply
When you find an item on the dropshipping Website that you want to list on your auction site are you obligated to pay for it if the item does not sell or can you just take your name off that dropshipping product and try another item that might sell ok. Hope that is sort of clear Reply
Hi Stuart again ... I asked a question for Salehoo to answer just before , hows that going. Just another quickie is I live in New Zealand and interested in Dropshipping companies , are there any in NZ that are on your database if I join and also Australia. Cheers Reply
Hi! No, you are not obligated to sell it. If you list it and it does not sell, you may want to try someting else. Before you list something that you want to dropship , do the research. Go to ebay and query a search for that product , if there are hundreds of them listed , move on to something else. Also remember to take advantage of the free insertion credit that ebay offers and relist is once. If it sells the second time around you will recieve a credit and don't pay for listing it twice. One word of advice. BE very careful and check inventory on that item daily. There is nothing worse than selling a product only to go order it and find out it is sold out ! If you can , find a backup dropshipper who may have the product in stock. Be careful because many times 2 dropshippers get the same products meaning if dropshipper is out of that product it is likely the other is as well. As a last resort if a product you have sold is out of stock, try finding another seller who is selling this product that may do you a favor and actually 'dropship' for you. Anything to avoid that negative feedback " He sold me an item he didn't have" which would be embarrassing and ruin your credibility! People who do not do a lot of ebay buying or don't know what dropshipping is will not understand when you email to tell them what they PURCHASED from you is actually not in your possession. I have had both good and bad experience with dropshippers, its worth a shot if you do not have $$ to invest in products but I feel much more comfortable knowing that item is at my fingertips ! Have a great day ! Reply
Thanks Kat ... I am just starting out and gathering info to start .... do you know if there are a wide variety of dropshipping companies in New Zealand as thats where I live , I know there is in Australia I presume. Sorry to be a pain but I am trying to look for ideas of what to source to sell online probably first on New Zealands local auction site ( www.trademe.co.nz ) you may want to check it out as your items may sell well over here also. And finally do you reccommend Salehoo as a good place to join for information on selling. Any ideas you may have are greatly appreciated ... I am looking at dropshipping initially as that seems to be the best way to test the waters at a minimal cost and once I become a little more savvy who knows. Best Wishes , Stu Reply
[...] There’s an interesting training workshop coming up in the eBay workshops board on Tuesday 18th March - Drop Shipping, the myths, the facts, the strategies is a must-attend workshop in my opinion. Before attending, read this earlier blog post about drop-shipping, and this one about the Doba-MoneyBookers tie-up. [...] Reply
thanks for posting this article..the informations you have given will be a big help to all who wanted to start or planning a drop ship business... Reply
Hey, anyone have personal experience when it comes to drop shipping with Pixmania-Pro? I consider taking advantage of their drop shipping program to sell electronics. Reply
Hi Aron: I haven't experienced them as yet but yes I would recommend you to get connected with www.wholesalepages.co.uk for reliable wholesale drop shipping services. Reply
I just sent this post to a bunch of my friends as I agree with most of what you’re saying here and the way you’ve presented it is awesome. Reply
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