Free Dropshipping Companies versus Third Party Resellers

Free Dropshipping Companies versus Third Party Resellers

Dropshippers have been getting a lot of bad rap lately, mainly because of companies that are actually resellers branding themselves as dropshippers. Due to that, a lot of potential merchants try to avoid dropshipping at all cost. It's a sad thing actually, given how dropshipping can improve the lives of sellers by leaps and bounds. Some benefits of dropshipping include shorter set-up time for the merchant, savings on manpower that should go towards inventory-keeping, savings on warehouse rental, savings on shipping, retained cashflow that could have been spent on merchandise that may not be bought at all.

So, the question then is: how do you tell if a dropshipper is the real thing?

First, there's the question of pricing. Free wholesale dropshippers usually price their items low enough for sellers to have a decent profit margin on. These suppliers get their items by the bulk, as such they are afforded a discount. As dropshipers, they in turn, sell to retailers at a cost that gives them leeway to markup and still be competitive within their give markets. If a dropshipper is selling the item at retail price, it means you won't be able to mark it up much and selling it would not even be worth your time. Marking up the price of a reseller-retailer would place you beyond your competitors' price. With the ease with which buyers can do comparative shopping these days, it's simply not worth the effort to sell at too high a price.

Second, is the ability to perform the order fulfillment function. The very essence of dropshipping is that they can take an order in singles or in limited quantities and send those out directly to the end-buyer. In that, a free dropshipping company then functions as the order fulfillment arm for the retailer. Most resellers posing as dropshippers won't be able to do this for you without costing them too much and loading those charges on you as the buyer.

Third, is the variety in inventory. Middlemen who pose as free wholesale dropshippers will only be able to offer you limited inventory. They often stick to a single niche or at most within a small set of similar products. Free dropshipping companies, on the other hand, are truly suppliers in nature and can cover a wide spectrum of choices for your general merchandise inventory.

Finally, a real dropshipping company will never charge you for its service. Like any supplier, it is a business model that allows them to earn simply by offering it at their wholesale price point. Companies that charge you a fee to sell items from their inventory is not a dropshipping supply company, but rather is a reseller.

When looking for a supplier, make sure you work with free dropshipping companies and not resellers posing as one. The latter would only be acting like a middleman in your transaction adding yet another layer of complications, and even worse, cost to the price of acquisition that should have gone to your profit margin instead.

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