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Tuesday, February 5, 2008

How To Find A Free Dropship Wholesaler To Boost Your Profits

By Davion Wong

The success of running a merchandise sale site on online auctions does depend on the dropship wholesaler you use. This model of operating a business can be lucrative and requires minimal time, money and efforts to set up. There is absolutely no need to design, manufacture, package, store and even ship the products. Being the middleman, you are spared all these and still earn a fat commission between the cost price and the price tag you set for each product sold.

People tend to think that free dropship wholesalers provide free shipping. That is a big mistake and misperception. A free dropshipping company does not pay for the shipping costs you have incurred in the sale. Rather, the free dropship wholesalers do not charge you for using its services. In other words, someone still has to bear the shipping costs, which in your instance, either yourself or your customer.

Finding a free distribution company does take some effort because many in the market do charge you a fee for their services. This can mean lower overall profits to you. Since the fee can be based on per transaction, monthly or annually, you need to pay attention to this. Make sure you read the company policy carefully when you hunt for good wholesale suppliers.

Every businessman hopes to work with a free dropship wholesaler. This really gives you an edge over your competitors as you need not worry about escalating expenses and can price your products more competitively. At the same time, when you increase the volume of transactions, you can negotiate with the suppliers for lower wholesale prices. This would beef up your profit margins.

Unfortunately, working with a free dropship wholesaler does have its challenges. There are many other aspects you need to consider and think carefully. While saving on costs is great, you need to look at the reputation and reliability of the supplier you choose as well as whether their merchandise quality is superb and delivery is timely. This can make or break your reseller business especially if your service standard is watched closely by the online auctions like eBay.

To find a good distribution company that is also free may be really hard if you are just starting off. The Internet has plenty of resources, but to sort out which are genuine and which are just middlemen, waiting to chop off their share, can be daunting. By simply clicking on the top sites a Google search page returns you are very unlikely to find what you really need. You may have to rummage in hundreds of websites in order to find at least one dropship wholesaler that is a genuine company and not a middleman.

Online directories of suppliers may or may not be a good source. Almost all of them are paid and scam risks are plentiful. In case you don't want to use the directories, you have no other choice but relying on somebody else's experience.

If you can spare some time, check out what people are saying about the suppliers at forums, discussion groups, blogs and even review sites. Read the comments and feedback, ask questions and you may find some really good answers. This may provide you with a contact of a good and free dropship wholesaler whom someone else has worked with.

Read about the most frequently used dropship wholesalers in the business from my site now.

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