Friday 6 May 2011

Top 4 Reasons Why A Dropship Wholesale Partner Is Feasible

Have you heard legends of online sellers who have made millions sitting at home doing nothing but acting as a sales rep for a wholesale supplier? If you believe them, you are wrong. The part about making money is correct, but that it comes without any effort is wrong and are most likely spread around by unscrupulous dropshippers who want to make a cut out of your profits or get you into a monthly payment program. Yes, wholesale dropshipping works, but that is only if you work it hard enough.

It is a business just like any other. You could say that even Nike uses a dropship model. They do nothing but marketing; everything else is outsourced. The dropshipping model is meant to bring this convenience to a small businesses. Under this model, you can concentrate on marketing your products and fulfilling customer needs. It is an enabling solution for your online business, not a get-rich-overnight scheme.

But, if there is so much hard work involved, why should you consider partnering with a wholesale dropshipper? Here are the top 4 reasons:

Reason 1: Sell Before You Buy

Consider why companies employ the services of wholesale UK. Do you think multinationals do not know where their products are being sold? Why do they give margins to these wholesalers? What they are actually doing is just passing on the risk. You too can do the same. With a dropship wholesale supplier, you buy only if the product has already been sold. You therefore get a reward for your marketing skills. It eliminates the risk of stockpiling, which pushes you toward discount selling at a loss.

Reason 2: Don’t Have to Hold Inventory

Inventories cost up to 26 percent of their value! This was what Toyota calculated in the 1970s, and they worked on it to develop just-in-time mechanisms to flank the behemoths called Ford Motor Company and GM in the U.S. You too can have the benefit of not having to hold inventory and your very own just-in-time system with a dropshipper.

Reason 3: Administrative Tasks Reduced Considerably

One of the major reasons why companies outsource is because they want to focus on their core competency. You too can focus on your marketing and customer skills, while mundane inventory tasks are done by a dropshipper. But, always calculate what they are charging you. Then, calculate the costs and risks you will eliminate if you outsource your inventory operations. Dropshipping will most likely come off as a good deal!

Reason 4: Can Offer Variety

Consumers long for variety. However, stocking all the items increases uncertainty and reduces profits. Now, you do not have to stock the items; the wholesaler will do it for you. This strategy has been used by many catalog marketing and mail order companies. Dropshippers have brought it to the eBay arena.

To conclude, wholesale dropshipping is a cost-effective, risk-reducing, and efficiency-increasing mechanism for your business. Use it wisely for best results.

Log on to www.wholesaledeals.co.uk if you are looking for wholesale suppliers that will help you concentrate on your marketing while cutting your costs on operations. Dropshippers will work toward serving your customers with better infrastructure and a lower cost structure.

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