Wednesday, August 11, 2010

Dropshipping - Beginners' Guide Between Wholesaling Or Dropshipping



Selling high quality products is always the key to success in running an online business. As beginners we are very conscious when dealing with someone new. This is a valid behavior for starters who are afraid of being ripped-off in this industry.

If you are considering getting your product from a wholesaler you should look for someone with large selection of product line which can easily be sold. A wholesaler who has completed contact information listed on their own website. With updated website information (updated at least once a week) and a refund policy for any returns and damaged goods.

As a beginner in this industry you have to decide if you will buy wholesale items upfront or enter into a drop shipping agreement. It is pretty hard to find a wholesale company who will drop ship for you at the same time. There are always PROS and CONS in every choice we make.

If you decided to purchase wholesale products upfront you will have the total control of your merchandise. Thus, you can avoid selling product on your website that is out of stock. In addition, selling wholesale merchandise will give you a bigger chance of getting a huge variety of item selection. However, there is always the risk of purchasing and spending money for items that won't sell. Therefore, if you are not certain that these wholesale items will sell might as well do not purchase it. You have to go back to the basic and study if there is a demand in the wholesale product you will be selling.

While in drop shipping, you don't need a big initial investment to purchase merchandise upfront. The concept of drop shipping is very ideal for starter who does not have any idea what to sell. What they can do is study the demand of their target market and offer their product. When a customer confirms a purchase, they simply send an email to their drop shipping company to pack and the deliver the order under the online retailer's name. The difficult part for this process is discovering and determining what is demanded. Furthermore, considering that there is a demand for your product; is there a drop shipping company who will offer an agreement for the item.

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