Wholesale vs Dropshipping: How to choose?

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Some people mistake dropshipping for wholesale and vice versa. However, these are two very different concepts and each has its pros and cons. In this article, we are going to discuss what wholesale and dropshipping are.

What is dropshipping?

Anyone with an online retail store can start a dropshipping business. There is hardly any investment in this business model. You need neither an inventory nor any storage space. Plus, you only pay for the products when they are sold.

There are dropshipping service providers like dropshippingXL, who offer an array of products to sell online. Choose the products you want to sell and list them on your website to start a dropshipping business.

In addition, when you dropship an item the product goes directly from the supplier to the buyer. All the packaging and shipping jobs are taken care of by the suppliers, so you can focus on sales.

Pros of dropshipping

No upfront cost

The start-up investment is minimal, as you do not need to pay for any inventory or storage space. You only pay the product cost after making a sale and that too comes with a profit.

No work pressure

As your supplier takes care of the packaging and shipping you require no resources to fulfill the order. In addition, there is enough time on your hand to focus on marketing.

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What is a Wholesale Business?

Wholesale refers to the process of buying goods directly from manufacturers and suppliers in large volumes. Wholesalers often choose to sell the products at a lower price to reduce the operational and storage cost. As they are buying in bulk, they receive the products at greater discounts also.

It is more about buying power; the more you buy the more you can sell and the cycle continues.

Pros of wholesaling fulfillment

More control

In the wholesale business, you control all the shipping, packaging and fulfilling of orders. It will be your sole responsibility to make sure that the order goes on time and the customer stays satisfied. Eventually, you are aware of the entire operation and can take the necessary steps to improve the business.

Sell Online or in-person

With your inventory, you get the opportunity to sell your product both online and offline depending upon the circumstances.

Wholesale vs Dropshipping

If you are not able to decide on this entire wholesale vs dropshipping concept, here are some clear thoughts to help you decide.

Choose the wholesaling business only if you have enough money to invest. Be ready for the entire storing, packaging, and shipping process. Another notable point while starting a wholesale business is, you will need to build long-term relationships with your suppliers.

If you are opting for a dropshipping business model, make sure you have a product niche on your mind. In addition, you should have some clever marketing techniques too.

We hope this article helps you decide what is best for you.