Though this rarely happens, both retailer and wholesaler can benefit from a business arrangement called drop shipping.
It is generally a mutual agreement between retailer and wholesale distributor.
Instead of stocking on inventory and incurring storage cost, retailers pass that responsibility to wholesaler.
This is a win-win situation for both because retailers have to pay less and wholesalers get to reach out to a wider customer base.
Drop ship builds value added network because wholesaler gets to work with multiple retailers to provide the merchandise.
They are relieved of the pressure of having to sell the product online because that responsibility is on retailers.
Retailers also have to trust the drop shipping company because upon taking merchandise order form customer, those orders are forwarded to wholesaler.
Wholesaler then prepares the item, attaches retailer mark or logo on it, and mails it to customer.
That way, retailers can focus on promoting and marketing the product without having to figure out inventory keeping and management.
If you are a retailer, how do you look for the best wholesaler company? Credibility and trust-worthiness are just two out of the many important points to look out for.
You need to know how long they've been around and do they handle their clients (retailers) professionally? New, inexperienced wholesalers may grow too quickly by taking multiple clients.
However, they should not compromise on product quality and promise delivery.
This partnership between drop ship agency and retailer can only work if both parties meet the promises made.
Also, take caution against partnering with relatively unknown companies.
There are many scams intending to confuse retailers and get them to part with money.
Drop ship is said to be one of the best ways to improve your online business.
Always make it a point to find out more about a particular company before saying yes to a partnership.