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Finding Wholesale Businesses That Can Help

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					?A good wholesale business is a crucial component for a company that wants to
succeed in the retail industry, whether online or through more traditional means.
Finding the right wholesale businesses, however, can be a little bit tricky, especially
for small businesses or entrepreneurs who are planning to sell on eBay or other online
auctions.

Wholesale businesses are those suppliers who sell to other businesses at a discounted
rate. Traditionally, those suppliers sold strictly in bulk. Any retailer who couldn't
afford to buy their products by the box/crate/pallet just wasn't worth their time, and
this left smaller businesses at a huge disadvantage when it comes to competing
against sellers with such huge buying power.

Lately there has been a supply chain management model that lets these smaller
businesses begin to compete, and it is particularly useful to the online selling industry.

Some wholesale businesses are now willing to drop ship their products directly to
your customers. Drop shipping is an efficient and effective way for almost anyone to
get involved with online selling.

Drop shipping begins with the seller listing the items from the wholesale businesses
on the online auction or their own eCommerce website. The seller's responsibility is to
make sure that the product is prominently displayed and sufficiently promoted. Then,
once the purchase is made, they simply collect the payment and then transfer the order
to the supplier who then takes care of the packaging and shipping fulfillment. It's
quick, easy, and effective.

So what are the benefits to using a drop shipping method? First of all there is the
significantly lower cost entry point to doing business online when you work with
wholesale businesses that drop ship products. These savings come from the fact that
you don't have to buy inventory in such huge quantities. Nor do you have to deal with
the fees and costs of storing your own inventory because - and this is probably the
most significant benefit - you don't have to keep any on-hand inventory at all.

Why is this such a benefit? Consider for a moment the volatile nature of the retail
industry in general and the Internet marketplace in particular. What is popular one day
is just another dust collector the next. To truly succeed in the online world you need to
be able to keep up.

In the past, this has been a very difficult endeavor. With stock rooms full of unwanted
products, sellers are forced to either offer discounts that can make them loose money,
or they have to take the loss and just dispose of the inventory.

Drop shipping has eliminated this risk. When you don't have to keep any inventory on
hand you can change your product offerings to keep up with the whims of a fickle
customers base.

Finding the right wholesale businesses goes beyond just making connections with a
business that offers discount products. Do your research. Does this company put your
name on the return label? Do they have a reputation for being reliable? Can they scale
to accommodate your own fluctuating levels of commerce?

There are many lists and companies online, each offering ways to help you find
wholesale businesses, but that doesn't mean you should just trust someone else to do
all the work for you? You need to know what certain products sell for in certain
markets. You need to be aware of current trends - what's hot and what's on life
support.

The Internet is, of course, a great place to start finding wholesale businesses that can
help your company. But it is also an environment in which you have to be very careful.
Know your sources, maintain strong relationships, and you can soon start finding
success as an online seller.

Andy Eliason is a writer at Main10, Inc. If you'd like to learn more about wholesale
businesses, or drop shipping, visit Simplx today.

				
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