What is the difference between drop shipping, light bulk and wholesale?

When ordering products from a retailer, the retailer may use different procedures to get the product to the customer or business. The three most popular methods are direct shipping, light bulk, and wholesale. Depending on the specific order and/or customer requests, one or all can be used. To make the best decision as a retailer, it is important to know the specific differences between each procedure.

Drop shipping is an arrangement for your supplier to ship directly to your customer. The world of e-commerce has shown a marked increase in the use of dropshipping. If you’re interested in starting your own online business, then drop shipping may be the answer. There is no need to deal with developing new products, finding a storage area for these products, or developing a shipping/receiving infrastructure. What drop shipping does is allow you to sell high-quality products on your website and have someone else worry about getting the product to the customer.

Although it sounds like a perfect arrangement, especially for the internet business marketer, there are some pros and cons. In addition to not having to worry about shipping your product to the consumer, there are a few other benefits as well. It will save you money. Due to the fact that you will not have to tie up funds in inventory, you can put this money in another necessary area of ​​your business. Plus, since you didn’t need to buy inventory, you don’t need to worry about your product becoming obsolete. You can instantly remove a product from your inventory and start carrying another one in its place.

As for the negative aspects of drop shipping, the most important thing would be the competition and the abundance of it. Make sure the products you are choosing to promote are unique. Do some research before deciding which product to ship. Make sure there aren’t hundreds or even thousands of entrepreneurs promoting the exact same item. Competition is good, but if you can’t compete with the competition, you’re wasting your time and money.

Another popular shipping method would be light bulk wholesalers. With the growing popularity of online retail establishments, bulk wholesaling refers to working with actual wholesalers who agree to ship small bulk quantities of a product to home based internet business entrepreneurs.

The way light wholesale works is that wholesalers will ship a small quantity of the product you are interested in. This will be able to be stored directly in your own home. After seeing the product, he would develop his e-commerce website. Then, as people make purchases on your website, you will personally package the product and ship it to the customer. When you run out of product, turn to your light bulk wholesaler and order more product. Similar to drop shipping, but since you’re shipping the package yourself, it can save you money in the long run. You have inventory and storage costs, but you can often get your products cheaper from the supplier than if you drop ship.

Finally there is the wholesaling process. Wholesaling is simply the process of selling large quantities at a reduced price for resale by a retailer. When purchasing a product in bulk, you must have the ability to store a large quantity of the product you have chosen for resale. He would then pack and ship the product to his customers at the time of sale. Although you are receiving the product at a reduced rate, you must consider all other factors when choosing this distribution method. Including the space needed, the possibility of your product becoming outdated and being stuck with large quantities of the product, and having the ability to ship each sale yourself.

When deciding which distribution method to use for your business, consider all factors. Although there are pros and cons to each of them, you should choose the one that best suits your lifestyle and the goals you are trying to achieve.

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