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How Home Based Online Auction Sellers Choose Between "Drop Shipping",
"Light Bulk" And "Large Volume" Wholesale
by David Hurley
When it comes to selling physical products on the Internet, the two
most common methods of obtaining products to sell are dropship
and wholesale.
However, as they are often lumped together a lot of people are not
clear about how each one is different from the other. So, in this
article I want to show you what each one is and how to choose which
method of supplying products is best for different business situations
on the Internet.
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1. Drop Shipping
With a dropship wholesale distributor, you do not actually handle the products at all.
Instead, you first need to locate a trustworthy dropship wholesaler and set up
an account. Once your account is set up you will be able to view
images and descriptions of the wholesalers product range via a private
access Internet site.
After you have chosen the goods you want to sell you can place images
and information about them on your website or on online auctions and
garage sales sites.
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When somebody purchases a product you e-mail the order through to your
wholesaler who then packs and ships the item straight to your
customer's address. The wholesaler will label the package with your
business name and logo and dropship it to your customer. As far as the customer is concerned, the
parcel has come directly from you.
Pros And Cons Of Drop Shipping
The advantages of drop shipping are:
- You don't have to pay up front to buy products in bulk.
- You don't have to handle the product yourself.
The disadvantage of drop shipping is:
- You pay a higher price than you would if you bought the products in
bulk and packed and shipped them yourself.
When To Use Drop Shipping
Do not build your business entirely on the drop shipping model. Drop
shipping should be used as a way to research the market and try out
new products on your customer base.
2. Light Bulk Wholesale
Once you have found a product that sells, it is time to cash in and
purchase the product wholesale to take advantage of the low unit
prices you will get on bulk orders.
However, this can be a big step for a small home-based business to
take, especially as many wholesalers stipulate minimum orders that
cost several thousand dollars.
The key here is to find trustworthy wholesalers who will agree to ship
you much smaller quantities of goods, but still at wholesale rates. We
are talking about minimum orders of less than $500. Chris Malta of
Worldwidebrands calls this kind of service "light bulk" wholesaling.
Light bulk product purchasing offers an intermediary step between drop
shipping and full wholesale.
Pros And Cons Of Light Bulk Wholesale
The advantages of light bulk purchases are:
- You get products at a much cheaper rate than with drop shipping.
- You don't have to commit thousands of dollars to a particular product line.
The disadvantages of light bulk purchases are:
- You do not get the lowest possible prices that come with large
quantity wholesale purchases.
- Whenever you sell a product you have to pack and ship it yourself.
Light bulk wholesale is a great way to build profits for reinvestment
in your business. Check your inventory to see which of your light bulk
products are the fastest sellers. Those are the product that you will
now want to purchase in large volume wholesale quantities using the
profits from your light bulk sales.
3. Large Volume Wholesale
When you know which products sell consistently well, take advantage of
the deep discounts you can get on the cost per product when you
purchase them in large wholesale quantities.
Make sure you have enough storage space before you commit yourself to
this method of purchasing products.
Pros And Cons Of Large Volume Wholesale
The advantage of large volume wholesale is:
- You get products at the lowest possible price per unit and will be
able to maximisemaximize your profits on sales of these products.
The disadvantages are:
- You must commit yourself to purchasing a large number of items and
storing them.
- You'll have to pack and ship each order yourself, or employ
somebody to do it for you.
The price advantage of wholesale far outweighs the disadvantages that
are associated with it.
If you follow this progression from dropshipping, through light bulk
to large volume wholesaling on products that sell well, you should be
able to build a business around dropship and wholesale, offering productsthat sell, and make more
money per unit sold while keeping unit prices low.
To find out more about how to locate a genuine dropship wholesale distributor,
and sell light bulk as well as large volume wholesale go to Worldwidebrands.com.
David Hurley uses the
Prosperity Marketing System to earn multiple streams of income from home on the Internet. What about you?
Read other articles by David Hurley
This work is licenced under a Creative Commons Licence.
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