One business dilemma being faced by a lot of start-up retailers is the need to invest on stocks.
Especially if the product you are selling involves electronic gadgets like laptops, cell phones, gaming consoles, iPads or iPhones, a big capital is normally required to be able to start selling.
While there are retailers who take risks by selling something that they do not have on hand, the possibility of losing their credibility as sellers is something that is not worthy to sacrifice.
Another concern with regard to selling products that are not just costly but are also considered fragile is the need for a safe and secured storage area.
Not only that you have to ensure that the area will not damage the product, security should be highly regarded as well.
Since these types of products are prone to stealing, making sure that the area is secured is not an easy matter to deal with.
While these matters are only few of the things that you need to take care of when selling these kinds of products, you can opt to instead drop ship wholesale products.
Drop shipping is a new method of retail selling wherein retailers do not need to stock up on inventories prior to start selling.
What you just need to do as retailer is to get in touch with a wholesaler and ask them to drop ship wholesale products for you.
The process works by selling a product that is part of the products line of the wholesaler.
You can initially make an arrangement with them on how things are going to work.
Once a customer purchases an item, you can ask the wholesaler to drop ship wholesale products while you pay for it.
The wholesaler will then ship the item directly to your buyer without you doing anything about it.
You earn from this transaction by putting a mark-up on the price of the wholesaler.
The difference between the money your customer paid and the money you paid the wholesaler is your profit.
This method is proven convenient to all parties involved with the transaction.
First, the buyer gets the product directly from the source.
Since there are only few people who handled the product, it is safe to assume that the product has a lesser chance of being damaged.
Second, the wholesaler does not need to pay for a salesman to be able to market their product.
They can just wait for these retailers to contact them without having to pay for them.
Before they ship the product, they are already paid.
Finally, the retailer only needs to market and negotiate-something that salespeople are good at.
All administrative tasks will be handled by the wholesaler.