Bulk vs. Dropshipping?

Full Member
Posts: 4
Joined: 25 Oct 08
26 Oct 08 02:18:46 pm
Hi all,
I am new to all this and am a little confused. I just read in the more or less 'introduction' post that bulk or wholesale is the more profitable way to go. I may have the terminology a little off as I am just learning it. From what I figure, it seems that you buy bulk from a wholesaler and sell it where ever you choose. The down side is that you have to put money up front to buy the products. So, when you buy the products, who ships them? And from where? But with dropshipping, depending on what product etc. you choose to sell, and where, the profits are smaller because you are selling one at a time? But you don't have to deal with shipping, or dealing with the product in any way.

I guess, for those who don't have any start up money, dropshipping is a good place to start? Also, when you decide to try a supplier, so you just contact them and tell them you want to sell for them and that you are a member of salehoo?

Any help is greatly appreciated! And good luck to all!

Site Admin
Posts: 5802
Joined: 27 Jul 07
26 Oct 08 10:06:58 pm
The advantages of buying in bulk;

Volume discount, meaning that the total cost price of each unit purchased is reduced, giving you more margin at resale.

Depending on what size bulk purchase you make, there are opportunities to buy direct from the manufacturer, increasing your margin even greater.

The biggest issues, a lot of stock to move...not such a big problem if you are buying fast moving stock of course.

There is shipping to be considered, customs duties, etc, as well has storage.

Drop Shipping, you list the item, you pay the listing fees and all final sale fees in the event of a sale, then the drop shipper sends the item direct to the final purchaser when the transaction is completed.

Everyone with little, or no start up capital is attracted to drop shipping because of the limited outlay, but it is not a road to easy riches.....far from it.

Markets such as ebay are saturated with drop ship products, and while some do seem to make some money out of it, most do not. The margins on these types pf products are so tight in most cases that buy the time you pay your listing fee, and your success fee, you could end up losing money.

About the only people who make good money from drop shipping, are the people who offer the service.

If you want to get into the market, get yourself $50.00, go to a few yard sales, weekend markets, thrift shops and sus out good quality brand name stuff if you can, or at least good quality.

If you are a good haggler, you'll be surprised at the prices you will walk away with for the stuff you get, and the chances are you will make at least 100% online if you buy right, possibly more.

No drop ship products will offer you that sort of return!

Also check out liquidated stock if you are in the US. I would suggest looking at one of Jimmy's start up packs to get you into the game, only around the 100 dollar mark I believe, and that will get your feet wet in the liquidation market.

Drop Shipping may sound fantastic, but the reality is vastly different for most, I would suggest saving a small hand full of cash, and then build your own path.

Btw, dropping the Salehoo name won't get you any advantages with suppliers, if you are looking at buying in bulk you only need to ask what their MOQ (Minimum Order Quantity) is, and then you can start negotiations on price from there.

Where is it shipped from?
Where ever you end up buying the bulk lot from

Mark (fudjj)

Community Manager

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