Wholesale distributors that will dropship your wholesale orders can save you substantial time, money and inventory. Dropshipping is more than just a delivery service. When you buy wholesale from a dropshipper, you get a storage service, a packing service and a paperwork service.
As you buy wholesale from wholesale distributors in the beginning of your online business endeavor, you will likely be evaluating each wholesaler’s services and products until you decide to buy wholesale products consistently from a few favorite wholesale distributors. During this aspect of your sales and purchasing analysis, it is important to put a realistic value on wholesale distributors’ dropshipping services.
If you currently use dropshipping services, you may have already begun this process. If you are contemplating using dropshipping services when you buy wholesale, then realizing the total costs and savings can help you make informative decisions when you buy wholesale products for your online sales.
Dropshipping services will save you time, money and inventory. Putting a value to the total services of a dropshipper, and not merely the delivery service, will give you a solid realization of your savings potential by using wholesale distributors dropshipping services.
Retail sales always involve an inventory. With or without a dropshipper, you will have to maintain an inventory record system. Accounting for inventory on-hand lets you know how many you can sell, accounting for inventory due in stock is needed to buy wholesale products in time to maintain a steady inventory flow. Accounting for out-of-stock inventory is necessary to prevent unfulfilled orders, customer dissatisfaction, and permanent customer loss.
Counting physical inventory is a necessary evil of retail inventory. Theft is a major concern in the retail industry – although not a strong concern for the small one-person online retail store. However, the National Retail Security Survey reports that the retail industry has a theft average of around 32% of inventory shrinkage. This inventory loss is due to shoplifting, employee theft, and theft by suppliers. With a dropshipper managing your inventory, there is virtually no worry about inventory theft and no extra insurance to carry. By buying wholesale products and using wholesale distributors that dropship, you will also be saving the cost of losing inventory through damage and unsold products. Excess inventories often result in a retailer having to sell their inventory at a markdown, contributing to lower profit margins, and even a loss. This will now become the burden of your wholesale dropshipper.
When you use dropshipping services from the wholesale distributors you buy wholesale products from, you are giving someone else the job of managing inventory from all aspects. This includes maintaining the inventory storage room, which costs utilities and cleaning supplies; maintaining the wholesale inventory in saleable condition, which costs supplies; the time and labor in transferring goods from point-of-delivery to inventory; the time and cost of labeling and rotating inventory; the time and cost of removing items from inventory storage for packing then packing and labeling the items for shipment; paying for the cost of packing supplies and labeling supplies; printing and enclosing the invoice with the shipment, as well as paying for invoice supplies and bringing the items to the shipping destination then managing postal services.
When you buy wholesale products and use dropshipping services from wholesale distributors, the dropshipper assumes responsibility for many aspects of the inventory process. When you use dropshipping services, you buy wholesale products that will deliver you time, money and inventory savings while delivering to the customers what they want. Inventory won’t disappear, but the burden of physical inventory will be gone. Buy wholesale products from dropshippers, and watch your business burdens dissolve while your business profits continue to evolve from your wholesale dropshipping savings.