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What is Dropshipping and Who are DropShip Wholesalers ?

Dropship wholesalers are people/organizations that help people utilize the phenomenon of drop shipping. Wikipedia defines drop shipping as :

"supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to dropship wholesalers, who then ship the goods directly to the customer . The retailers make their profit on the difference between the wholesale and retail price."

In short, this means that the dropship wholesalers take care of the entire headache of packaging and shipping the product to the users while you just have to list the products for sales on sites like eBay.

Drop shipping can occur from dropship wholesalers when a small retailer who typically sells in small quantities to the general public receives a single large order for a product. Rather than route the shipment through the retail store, the retailer may arrange for the goods to be shipped directly to the customer from dropship wholesalers.

Benefits that Dropship Wholesalers provide:

The two main benefits of drop shipping from dropship wholesalers are - no upfront inventory to purchase and a positive cash flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a credit card or credit terms. Therefore, there is a period of time in which the seller has the customer's money, but has not yet paid the wholesaler.

Scams

Drop shipping has also featured prominently in some Internet-based home-business scams. Scam artists will promote drop shipping as a lucrative work-from-home opportunity. The victim who buys into this scam will be sold a list of businesses from which drop-shipment orders can be placed. These businesses may not be wholesalers, but other businesses or individuals acting as middlemen between retailers and wholesalers, with no product of their own to sell. These middlemen often charge prices that leave little profit margin for the victim, and require a regular fee for the retailer's usage of their services.

Avoid Dropship wholesalers scams

Here are the warning signs that you should watch out for...

* If you can easily find dropship wholesalers or drop shipper in the search engine, it's either scammer or middleman. The truth is that over 99% of the companies you see online are either middlemen or scams. Scammers make money from people like us, and many of them are marketing and search engine experts, so they get a lot of exposure online.
In fact real manufacturers and wholesaler suppliers don't have fancy websites and they rarely advertise. Why? Because their main expertise is product research and creation. And that's the way it should be.
* Scammers have either no or weak money-back guarantee - If they don't provide you guarantee, it can mean two things. They aren't confident on the list of companies they provide. They are ready to run away with your money.
* Scammers sell outdated list - The list of companies does change every day. The last thing you want is an access to outdated companies, which most websites provide.

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