For wholesale buyers, efficiency and convenience in ordering and shipping products to their customers is a primary factor in finding business owners to partner with. That’s why it is important to take note of the benefits of dropshipping. Offering dropshipping to wholesale customers will give you an edge over businesses that don’t.
What is Dropshipping
According to Worldwide brands, “Dropshipping is a service offered by some Wholesalers. When you use a Wholesaler who offers Drop Shipping you don’t have to worry about stocking or shipping products. Instead, when you get an order from a customer, you contact your wholesaler and they ship it to your customer for you. This means you, as a retailer, can sell a variety of products without ever having to stock any inventory whatsoever. This makes drop shipping very appealing for new, small, home-based online businesses.”
As online business owners, you can dropship the products directly to the customers of your wholesale buyers. Or, you can partner with a dropshipping company to handle the shipping for you.
Offering Dropshipping to Wholesale Customers
For wholesale buyers, “To get started, simply partner with a dropshipping wholesaler and begin marketing their products from your site. They handle all shipping and other logistics involved in getting the product to your customer,” according to Smallbiztrends.
In this post, we will focus on dropship wholesalers that will ship products directly to customers of their wholesale buyers.
Once wholesale buyers get orders from their customers, business owners ship the ordered products directly to the said customers. In that way, you let the wholesale buyers handle the marketing of your products while you focus on the procurement, shipping, and logistics. Overall, it’s a win-win situation for both you and the wholesale buyers.
5 Benefits of Dropshipping
1. Increase customers
Wholesale customers can display your products in their physical or online stores, and market your products directly to their line of customers. As online business owners, you will be able to indirectly expand your market and reach more customers; otherwise, you would not be able to have if you haven’t partnered with wholesale buyers.
According to Abetterlemonadestand, “Dropshipping has a number of advantages namely reduced risk, lower capital, wide product selection, highly scalable and location independence.”
2. Save on money, time and effort
Working with wholesale customers that already have a solid base of customers will save you a lot of time, money and effort.
As stressed by Oceantailer, “Most people who are starting their first online business via auctions or online stores don’t have a lot of money to buy a bunch of products or the space to warehouse and store the products they want to sell online. This is where working with a real Dropshipper will save you a ton of money. A real Dropshipper is simply a Certified Wholesaler who offers dropshipping. You find the Dropshipper you want to work with (the one who has the products you want to sell.) They will then give you access to their product images so that you can post them on your website, auction, blog or however you plan to sell online. When a customer orders the product, you then order the product from the Wholesaler and they ship it to your customer.”
Merchants display your products in their online store and send you an invoice once a customer purchases your products. Once the orders are confirmed by the merchant, you ship the products from the warehouse to the address of the customer. In this order fulfillment process, both you and the wholesale buyer saved on the time to make a sale.
Wholesale merchants don’t need to purchase stocks of inventory that might not be bought at all. With dropshipping, merchants order from store owners or manufacturers when customers already bought the product. It lessens the burden on merchants; at the same time, less effort for the store owners to find customers.
With eCommerce, dropshipping means less expenses for wholesale buyers since they only pay for products that are already sold. For the part of the manufacturers, it means more sales, product movement, and fulfilled orders. Partnering with reputable wholesale buyers who are also looking to increase their profits is a win-win situation for you. In this way, having more wholesale buyers will increase your sales and profits.
3. Increased Wholesale buyers
Wholesale buyers will be more likely to partner with you when you are a dropship wholesaler. Buyers do not need to a warehouse and stock inventories since you will be the one to ship the products directly to their customers.
Plus, wholesale buyers
On the other hand, Shopify wrote, “Running an e-commerce business is much easier when you don’t have to deal with physical products. You don’t have to manage a warehouse, pack, and ship orders, track inventory, handle returns, and manage product inventory.”
The dropshipping model offers flexibility that would not be possible without it. Wholesale merchants can run the business anywhere and anytime as long as they have Internet connection. With the Internet, buyers can directly communicate with manufacturers or store owners at the same time with customers.
It gives flexibility to merchants since they can partner with multiple wholesale suppliers and sell more products to their customers. Manufacturers also get more flexibility since there is more product movement.
In business, being able to multiply your money, time and effort is a form of leverage. By offering dropshipping to wholesale customers, you’ll be able to prioritize on establishing relationships with these buyers.
Having reliable and dependable dropship wholesalers who will do the shipping for you balances the burden between the merchant and the supplier.
Disadvantages of Dropshipping
Although, there are also disadvantages to the dropshipping model. In a guide, the disadvantages to dropshipping include errors in the product shipment, shipping problems, inventory issues, miscommunication, and low margins.
Aside from that, “You lose quality control since you can’t see or use the product before it goes to the customer. You have take care of the return/complaint process yourself. You lose control over shipping quality or speed,” according to E-commerceplatforms.
Consider the advantages and disadvantages, and whether this order fulfillment process will work for your business. If the pros outweigh the cons, then, it’s time to start offering this service to your wholesale customers.