| Retailers only pay for the items they sell when | | | | rate you charge to the customer is profit above and |
| wholesale drop shipping is used. This business process | | | | beyond the product profit you have made on the |
| has become a very popular way for retailers to | | | | sale. Wholesale drop shippers capable of supporting |
| source the merchandise they offer. | | | | you in this endeavor can be found in the online drop |
| Retailers that have an online business generating the | | | | shipper directories. Selling and ordering merchandise is |
| need for large volume product provision mostly use | | | | made so much easier to manage by using the |
| the drop shipping approach. In this business process, | | | | Internet. This is one of the ways you can start an |
| merchandise bought online is delivered directly from | | | | independent online business from home. |
| the wholesale supplier to the customer. The website | | | | This mode of operation eliminates costs associated |
| owner is the 'go-between' that matches retailers with | | | | with keeping stocks of inventory and maintaining |
| suppliers. Managing the 'go-between' business is the | | | | warehousing facilities. The flow of this transaction is |
| same as managing any other business. | | | | such that the customer orders from your website |
| This venture's main advantage is that all you need to | | | | and makes payment to you. You then forward the |
| start is a computer with a good internet connection. | | | | order on to the drop shipper for order filling and |
| The role of online retailer is the role of 'go-between' | | | | delivery to the customer. The order filling involves |
| matching customers and product manufacturers / | | | | the selection of product items from inventory and |
| suppliers. In this role, you have established | | | | packaging them for delivery to the customer. |
| agreements with one or more suppliers for the | | | | The packaging may even include retailer labels and |
| distribution of products to your online customers at | | | | logos to give the impression that the website owner |
| an agreed cost. Suppliers will give you a rate for | | | | is the company really providing the product. People |
| product delivery depending on product type, location, | | | | set up retail sales businesses all the time using |
| delivery method and total number of expected | | | | wholesale drop shipping to do all their inventory |
| deliveries. You take this all into account when setting | | | | management and delivery. It is wise to know all the |
| the shipping & handling charge on a specific item | | | | right things to do and not do in this arrangement with |
| bought by your customer. | | | | your wholesale supplier. |
| The difference between the cost to you and the | | | | |