Although it may defy common logic, some of the larger drop shipping companies are also some of the least cost-efficient. The sole consideration when choosing a drop shipper should be the price of the goods you are being supplied with.
Though they undeniably sell goods below retail price, the biggest drop shipping companies often do not reduce the cost as much as other comparable companies.
As opposed to wholesaling, purchasing in bulk is not necessarily the key to success when drop shipping. When drop shipping, chances are you are purchasing individual items as opposed to large amounts. Therefore, bulk discounts will be far less advantageous.
Often, those that utilize drop shipping from large drop shippers simply cannot compete with other companies that manage to acquire products directly from the supplier. Also, there are often monthly fees involved in drop shipping. That can take another major chunk out of your profits.
Above all else, make sure that you have thoroughly researched the possible options to ensure you make an informed decision and acquire your products at the cheapest possible price.
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