Why should I offer drop shipping - wholesale vs. drop shipping

[emaill337]

As a supplier what are the benefits of offering drop shipping services? I need to work out a pro and con list for wholesale vs. drop shipping so please tell me your thoughts.

Thanks.

[Windowslite]

Drop shipping is not a long-term viable solution for a business. As a supplier, you will be able to use drop shipping as additional income, however larger orders give more profit.

As a wholesaler, you know what your minimum order quantity needs to be to turn a profit. If you believe you can drop ship and still meet that goal then good for you.

My recommendation would be to offer drop shipping on some items. Keep the high dollar items for wholesale so you do not cut into profits.

Not every drop ship item is a hot ticket product that is going to sell a lot. That is why traders who are either starting out or need to test a product on the market, use drop shipping.

[O_OWHISPER]

drop shipping can be good for you as a supplier because it opens up your customer base, but you need to crunch the numbers so it does not cut out your profit.

[MICROmud]

Pros for drop shipping: can lower MOQ on items and have other traders search for customers to buy your products.

Cons: drop shipping does not earn as much as a bulk sale.

[webrobot]

I think suppliers shy away from drop shipping since there is no way to determine how many of an item you will sell. Certainly, there are projections but with wholesale, at least you know the MOQ.

[Andrewdennis]

As a new trader, I vote for you to offer drop shipping so I will know a good supplier to use :)

[emaill337]

Currently I am only thinking of doing drop shipping on items that I have too much stock in and is no longer a main focus on my sales.

Do other traders do this? Offer drop shipping as a way to clear merchandise?

[MICROmud]

Why not just offer an eBay joblot if you are just trying to clear out your inventory?

[gamerfan]

I offer drop shipping on select items and have had success. Depending on what you sell (and the price) you can make just as much money as you would through a bulk order.

Remember you have to let people know, so do some web marketing to spread the word about your drop ship offer.

[forgotten_4580]

As a supplier, I can tell you that drop shipping can hurt/benefit your business.

Other forum users have already stated that drop shipping is normally used for traders starting out or testing the market. This can mean limited sales.

However, drop shipping does allow you to charge more for each item than you would if it was in a wholesale high MOQ order.

Since you are just trying to clear your inventory I say at least try drop shipping and see if you like it. There will be extra paper work of inventory (but you should be keeping up with that anyway).

As long as you can supply your customers with an accurate drop ship inventory, handle all the shipping arrangements and ensure product quality then try dropshipping.

[emaill337]

Yes, I do not want to become a drop shipper solely. I just think drop shipping might help me clear out some merchandise and make some extra money.

I am going to charge for shipping and handling so that will help me curb my expenses. How much should I add to each order for handling?

[Windowslite]

Most drop shippers will add $2 or $3 to an order for handling fees.

[emaill337]

Yes, $1 to $3 is what I had in mind for handling fees. I believe I am going to try out drop shipping and see what comes from it.

Appreciate all the help!