Posts Tagged goods
The Flaws of Drop Shipping
Posted by Scott in Bulk Drop Shipping, Drop Shipping, Wholesale Sources on July 16th, 2009
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.
Generating Profits Through Wholesaling
Posted by Scott in Home Based Business, Warehousing, Wholesale, Wholesale Sources on July 16th, 2009
Today’s intense economic climate has people everywhere scrambling to save as much money as possible. To many of us, frugality is so ingrained into us that we naturally seek out the best deal, whether it comes to picking out a toaster or purchasing a new car.
In the case of an entrepreneur looking to establish a business, the hurdle discovering a source for the lowest prices of the goods you plan to sell is heightened. It is at this crucial crossroads where various wholesale sources are brought into the fold. A wholesaler engages in trade either through a distribution broker who acts on the behalf of the manufacturer or bypasses the broker entirely and buys directly from the manufacturer.
The greatest advantage of purchasing goods at wholesale is the massive price gap between those of wholesale and retail, as much as 50 - 70 percent off. Local competitors and businesses abroad will be purchasing products at many of the same wholesaler sources. Since these sources rely on a high volume of sales to generate their revenue you will often find that placing orders in large quantities will grant you even deeper discounts.
You will find that you are able to add significant value to your bottom line by purchasing products from a wholesaler. The wholesaler enables you gain high quality products to sell at much less expense, while simultaneously increasing your margins and allowing for a discounted strategy that has great potential to increase your company stock turnover rate.
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