July 7th 2008

The Many Faces Of Wholesale Dropship Users, Who’s Who In The Dropshipping World (Part 1)

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Much has been written about dropshipping and how it is the best thing since sliced bread. But who are the people who use it as a management solution and what are the biggest mistakes they make when dealing with their wholesale dropship suppliers? We find out all that and more.

The New e-commerce vendor, theeBay trader, the online store owner, the bricks and mortar store owner, or the wholesale importer. Which category best describes your business?

If you looked about on the internet today for information on wholesale dropship companies, China dropship suppliers and electronics dropshipping suppliers you’d see that most articles and blogs are written from the outside looking in.

That’s all well and good but it doesn’t really address the different types of people who use dropshipping as a supply chain method and their reasons for doing so.

Here is a look at five common retail groups who choose to use a wholesale dropship supplier to get their products to their customers rather than using the more traditional bulk purchase method. rather.

But also to ‘keep up with the Joneses we’re also going to have a look at the mistakes dropshipping vendors most commonly mistake and how they can be fixed.

Which types of vendors are most likely to use a wholesale dropship service to get goods to customers?

The businesses and individuals most likely to use a dropshiper can usually be broken down into five groups:

The Newb The New E-commerce Vendor

  • Business Size: Small

  • Market:internet shoppers, eBay buyers

  • Reasons for dropshipping:To build up stock, it allows them to sell items without putting up large amounts of capital for investment.

Ebay trader, thumbnail The EBay Trader/EBay Powerseller

  • Business Size: Small-Medium

  • Market:online auction buyers, eBay buyers

  • Reasons for dropshipping:To eliminate the need for storage space and to build inventory at their online stores.

Online Store Owner Icon Online Store Owner

  • Business Size: Small-Medium

  • Market:internet shoppers, online consumers

  • Reasons for dropshipping:To reduce the need to keep physical inventory and increase their amount of inventory so people spend more time on their site.

Bricks And Mortar Icon, Small Bricks And Mortar Store Owner

  • Business Size: Small-Large

  • Market:off line consumers

  • Reasons for dropshipping:To increase inventory without increasing the number of items on their shelves.

Wholesale Importer Icon, small Wholesale Importer

  • Business Size: Large

  • Market:Online vendors, bricks and mortar retailers

  • Reasons for dropshipping:To send samples to prospective customers to allow the customer to test the item for themselves.

While all of these different groups use dropshipping as a supply chain method for different reasons there are some common needs reasons and difficulties that all people using a wholesale dropship supplier to get products fall into.

Read Part Two of this blog to find out the most common mistakes that dropshippers make and how you can double, or even triple, your turnover by avoiding them


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2 comments...What do you think?

  1. Posted by The Many Faces Of Wholesale Dropship Users, Who’s Who In The Dropshipping World (Part 2) 8th July, 2008 at 4:54 pm

    [...] Part One of this blog to see the five main types of dropship users and what their reasons for dropshipping [...]

  2. Posted by Andrew 9th July, 2008 at 11:08 pm

    i find a new online auction website that works the same way as ebay but they only work on a pay as you go service

    heres there fees to open a store

    100 items = 1 Euro per month
    200 items = 2 Euros per month
    300 items = 3 Euros per month

    register now here http://www.eirebay.com

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