Thread: Drop Shipping Supplier Or Bulk Wholesale Supplier?

Drop Shipping Supplier Or Bulk Wholesale Supplier?

If you are looking to expand your drop shipping business or trying to decide what is best for your new home based business then you may want to consider the differences between using a drop shipping supplier versus a bulk wholesale distributor.

Drop shipping suppliers are nice and easy because you do not have to carry any inventory yourself, you don’t have to worry with packing products and shipping them out to your customers, and you can order as few or as many times as you wish. I have always had a few problems with drop shipping services though. Imagine your customer places an order from you off your website or wins an auction of yours. You exchange money and then call your supplier and tell them to send that product to your customer, with rush shipping, and they tell you that they do not have that product in stock. Imagine your customer calls you talking about broken parts, defective electronics, or a box that has been slightly crushed and you call your supplier about it and they tell you that they can only warranty products packed and shipped in bulk. These are only some of the problems I have had with drop shipping suppliers, however, most of the time they can make business a little easier.

A bulk wholesale distributor can really give you an edge, especially on ebay. These distributors can offer you a lot better prices than anyone else which can make your products have a very competitive price in your market. These products are fully backed with warranties and guarantees, direct from the factory. This is the way to go if you really want your home business to increase in size and sales. It is more work but it is worth it in the long run. One problem many home businesses have is that they do not have thousands of dollars to purchase the minimum quantity order for bigger products. Getting a loan to carry against these products can be risky in a lot of ways. In my experience, buying in bulk is the best route for any home business ready to expand or just starting out.

No matter which you choose to do, they both have their advantages and disadvantages. If you really want to increase sales and your customer service compliance then you need to consider buying in bulk like the rest of the heavy weight sellers and be in competition with them instead of with the millions of the little guys.