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Drop Shipping – A Guide to the Best Drop Shipping Wholesalers and Practices

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Drop Shipping – A Guide to the Best Drop Shipping Wholesalers and Practices 4.84/5 (96.88%) 77 votes

Ecommerce business ventures are a big hit among small as well as big players, all around the globe. Even though a number of perks come as part and parcel to Ecommerce ventures, a considerable lot of business owners are reluctant in heading out to this direction. One may blame lack of information, variation in personal opinions and effect of rumors to these consequences, but coming down to the facts, the reason behind this unpopularity in E commerce trends is the huge investment it calls for. The extensive investment in setting up an E commerce business is what repels many investors from this budding business opportunity.

If you are having second thoughts on the same front and are concerned about the costs involved in inventory and the initial set-up investment, it’s time you bid farewell to all your confusions. The ‘Drop Shipping’ business model comes to rescue with answers to all your problems.

Knowing the Drop Shipping Approach

Drop Shipping is an Ecommerce business approach that helps you cut out on the inventory bills, shipping hassles and the retail fulfillment issues. The drop shipping business model allows you to make sales from your store without having to go through the trouble of piling stocks and undergoing shipment procedures. Rather than having your own inventory, you join hands with a drop shipping wholesaler, probably a retailer or a manufacturer of the goods your online store deals in. All you need to do is after every sale forward the customer order and shipping details to the drop shipping wholesaler who directly gets the order delivered without you having to intervene at any step.

Drop shipping business cuts down on every investment required to set up an Ecommerce store. All you need is a laptop and a steady internet connection, and your Ecommerce store is ready to roll, courtesy drop shipping.

Every element on this planet, every new technology and every business model comes with its pros and cons, and drop shipping is no different. Let us take a brief look at both the bright and the gloomy side of this upcoming trend.

A Take on the Brighter Side of Drop Shipping

  •         Reduced Capital Investments

Drop shipping makes starting a business very convenient and light on your pocket. With almost negligible capital investments, drop shipping backs up a soft start into the Ecommerce world. No investment is required in purchasing stocks, renting a warehouse for storage, buying shipping and packing materials or employing staff for maintenance.

Drop Shipping Wholesalers and Practices - Retailemall E-commerce Blog

  •         Easy Management

With no inventory to manage and no shipment procedures to be undertaken, you can focus all your attention in one direction. The headache of tracking and managing stocks, hassles of product handling returns and inbound shipments and maintaining accounts of goods sold are absolutely eliminated in this business model.  A drop shipping business enjoys the perks of easy management and increased productivity, owing to the diminished work responsibilities.

  •        Seamless Opportunities

One of the most significant benefits of a drop shipping business is its ever-maturing nature. Here you can experiment with your services fearlessly. Instead of dealing in a limited variety of products you can cater to a wide array of merchandises, to the extent your drop shipping wholesaler can accommodate. A wider range of products at sale helps you increase your earning drastically.

  •        Free from Location Restrictions

Drop shipping model eliminates the drawback of operating from a fixed location. It provides you the flexibility to operate your business from any place on the Earth where you have a working laptop and a steady internet connection. Surprisingly, many of the drop shipping ventures in operation currently are home-based in nature.

drop shipping business - Retailemall E-commerce Blog

  •        No Risk Involved

What could be better than having a business with no risk to bear! With drop shipping wholesalers at your service, you purchase a product only after once the sale is made. You need not worry anymore about the piled up stocks in warehouse that cast a heavy hole in your pocket. No fulfillment issues or expiring goods are the key features of a drop shipping business.

  •        Wider Circle of Target Audience

Having an illimitable inventory of products gives you a chance to interact with and cater to a wider range of potential customers. Expanded periphery of audience circle directly leads to increased sales and, hence, bigger profits.

A Take on the Darker Side of Drop Shipping

  •       Reduced Profit Margins

A major drawback of drop shipping is reduced profit margins on products. Since starting an Ecommerce business with a drop shipping foundation involves negligible expenses to be made on retailer’s front, many traders sell goods at marginal price in lieu of increased traffic. Even though these merchants fail to provide good customer service, they end up attracting a large chunk of your potential customers with their cut-rate prices. 

  •       The Blame Game

Any shipping blunder made by your drop shipping wholesaler can shred your reputation to pieces. On a customer complaint, you would be required to take full responsibility of the errors in order delivery made by your suppliers. You would be a party to the mistakes committed by your merchant, without you being able to do anything to rectify the same. Therefore, it is very important that you choose the right drop shipping wholesaler to avoid being a part of this blame game. 

  •       Small Fish in the Big Pond

Drop Shipping completely eliminates the feature of ‘exclusivity’. As most of the drop shipping wholesalers provide their services to more than one retailer, the same products are sold by a number of Ecommerce websites. Before you know, your product is already spread out in the market at half the prices of what you intent to sell at. You slowly tend to merge in the hoard of Ecommerce retailers, providing exactly the same goods with no Unique Selling Point to back up your sales.

  •       Complete Dependence on Drop Shipping Wholesalers

Having your own inventory gives you an upper-hand in keeping a track on the status of the availability of stocks. In case of a drop shipping wholesaler, the availability keeps changing with every passing second, making it extremely difficult to keep a tab on products. There is nothing you can do to alleviate this problem but simply hope to get timely intimations on the status of the goods from your wholesaler.

We can conclude from the above points that having the right drop shipper is one of the most important elements that govern the extent of the success of your Ecommerce website. Putting your business in wrong hands may prove devastating for your venture, bringing the reputation of your company down to tatters. Let us take a look at the top drop shipper enterprises that take away the limelight with the best services in the industry.

The Top Drop Shippers in Business

#1 Doba.com

Doba is the leading name in drop shippers. Dealing in over 12,000,000 products and brand names, Doba provides excellent shipping services. The website also provides the feature of ‘free trial’ on its services, so you can choose well before investing.

#2 Salehoo.com

One of the largest drop shipping communities is Salehoo.com. With over 90,000 clients at its testimony, Salehoo brings forth a perfect solution your drop shipping requirements at the most reasonable rates.

#3 Worldwidebrands.com

Worldwidebrands.com caters to over 10 million products and deals with over 8000 happy customers from all around the globe. The drop shipper provides how-to videos, guide e-books and other training material to combat the problems faced in drop shipping business.

Here is an overview to some of the most popular drop shippers: 

Drop Shipping: The Indian Scenario

The concept of drop shipping is not new to the Indian markets, but its extent is fairly novice. Even though the country enjoys its fair share of over $10 billion E-commerce market, not many companies have ventured into the world of drop shipping. A few hot shots can be spotted in this race but currently the competition is at a very initial stage. Big players like Alibaba.com and Indiamart.com are availing the unconditional benefits of drop shipping business and reaching new heights with an excellent response from their customers. A number of small scale companies are volunteering and actively opting for drop shipping techniques too. The coming times show a brighter scope for drop shipping opportunities in the Indian Ecommerce markets.

However, in contrast to the trends witnessed in retailers, the list of drop shipping wholesalers does not look very promising. Not many drop shippers have surfaced in the industry, but the quality of the services of these few merchants is fairly good. We can hope that with increase in demand for quality drop shippers more and more versatile options will emerge in the industry in the coming years.

  •       Reduced Capital Investments

Drop shipping makes starting a business very convenient and light on your pocket. With almost negligible capital investments, drop shipping backs up a soft start into the Ecommerce world. No investment is required in purchasing stocks, renting a warehouse for storage, buying shipping and packing materials or employing staff for maintenance.

Conclusion:

Drop shipping is witnessing tremendous popularity in India as well abroad. As your customers go by the popular trend of ‘shop till you drop’, its time you focus your attention on the new upcoming trend of ‘ship till you drop’ – drop shipping.

Drop shipping comes with its share of pros and cons but don’t let its minuses keep you away its boundless benefits. Beware of the vices, take necessary precautions to safeguard your business, and you are all set to step into the world of realm of drop shipping. 

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About Gaurav Dhiman

Gaurav is technology enthusiast with more than 11 years of professional IT experience with world renowned IT companies like HCL, Cadence Computer Associates, NEC and Infosys. He loves to experiment and explore latest technologies to solve challenging problems. E-Commerce is something which always excites Gaurav and makes him think out of box to deliver and add value there. He always loved to hear from his readers, so feel free to get in touch with him on his social profiles.

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