Wholesale Drop Shipper Sources – What to Seek and What to Watch Out For
One of the major benefits offered by a wholesale drop shipper is that it allows you to vend products without keeping a physical stock. You can market the goods posted on the pages of a wholesale supplier’s website and offer a price more than they are charging to make a profit. This piece of writing is intended to help you discover the difference between the real wholesale provider and the middleman.
There are groups out there describing themselves as wholesale drop shippers but are in fact what is called a “broker network”. There is a large description of this at Worldwide Brands; simply click on the scam, see link on the right and watch the second entry, broker networks (this entire section has many good information about the “scams” to look out when finding a wholesale drop shipper).
Some of these broker networks have a too complicated system of steps you have to take, each keeping you away from the panacea of being a trade name wholesale provider promised at their site, and onto the dirty depths of partaking in a broker network. What you’re truly getting into is a commission sales condition and a trade model similar to MLM. Whatever you do, never pay for the application fee just to discover what it is all about. These broker networks really lie as they will contact you with no fee. On the whole, you must never, ever pay a charge just to talk with somebody about what they provide. No reputable company would require this.
Another is the middleman. The middleman drop ship group positions itself between the distributor/manufacturer wholesale provider and the reseller. They usually aggregate numerous different providers and present them beneath “one roof”. Many ask a monthly charge and also have per order drop ship charges. On the whole you should avoid the “evil middleman” because it is too hard to locate lucrative product lines given there middleman mark up, per order drop ship charges, and participation charges.
Lastly there are the real wholesale drop ship companies. These are distributors and manufacturers who are willing to do business directly with the small internet retail guy. You can employ these sources to stock your eBay or other electronic store and stand to make a small income.
Real wholesale provider will require you to have a resale license and a federal tax ID. Some will also require a 100 dollar minimum purchase for the first order to ensure you are a serious reseller and not a customer trying to purchase wholesale. These limitations are really good indicators that you’re dealing with a true and reputable wholesale drop shipper.