Dropshipping is the best way to go when starting an eCommerce business within Amazon and eBay. In this weeks blog, it's the battle between retail vs wholesale dropshipping.
Many eCommerce business owners who dropship do retail dropshipping. The only problem is, many people are doing it and with low profit margins. Retail dropshipping isn't a sustainable way to grow your business longterm, and it's a grey area within Amazon TOS. Certain retailers will send invoices, packaging, and packing slips - which can leave a sour taste in your customers mouth. On top of that, a lot of retailers don't allow resellers.
Best option to dropship is wholesale dropshipping, and a lot more sustainable for longterm growth. Gives you the opportunity to scale your business HUGE. You're in control of your business in terms of warehousing, packing and shipping. Prices from the manufacture doesn't fluctuate as much like retailers do.
With wholesale dropshipping, you don't need to launch a new brand, you don't need to add extra value to a product that's already selling. Wholesale dropshipping trumps retail because it's within TOS- it just takes more time to find products, but more sustainable for the long term rather than retail dropshipping. One of the best routes to take for scaling big quick. You'll have a juicier bottom line, and legitimize your business at the same time.
You can take a step further and build a brand with your business by creating listings from scratch using wholesale suppliers. Once you get the ball rolling with sales coming in, you start to qualify for order discounts from the wholesale suppliers - something you normally can't do with retail suppliers.
We have hundreds of wholesale suppliers you can use within our training programs.
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WRITTEN BY: Leslie Lazaro