Posted on

A Start Up Guide on Drop Shipping

Marine Shipping Company in Singapore | Shipping Agent Services

Product distribution can be defined as the process of moving products from a manufacturer to the end customer. There are many different way manufacturers distribute products and one of the fastest growing ways has manufacturers recruiting drop ship wholesaler agents.

Here is a quick example of how a manufacturer drop 미국배송대행  ship wholesaler business would work.
Imagine that Company X manufacturers auto part accessories and one of their products is a car wax that bring out the shine so great that any car can look 100 times better. This car wax product is also known by its name brand and is recognized worldwide.

Now imagine Company X the manufacturer of this great car wax has never sold it directly to consumers. They are essentially only a manufacturer and all of their expertise is in manufacturing this great car wax, but they know very little about marketing products. They need a product distributor to distribute their car wax.

The President of Company X decides his business strategy will no longer be to sell to only one large distributor. The strategy will change to recruiting a bunch of small distributors to market the product. These smaller distributors will be drop ship wholesalers []. To make this business strategy successful Company X will provide smaller drop ship wholesalers a price of $5 for the car wax and the average suggested retail price is $13.99 and customer will pay for shipping which will be fulfilled by Company X.

Company X now goes out and recruits a bunch of small drop ship wholesalers in various regions of the country and gives them the opportunity to pocket the difference between their $5 cost and the $13.99 retail price, a total profit of $8.99 per sales. Best of all Company X tells these distributors that it will ship all order and all the distributor has to do is market the product and make sales.

As you can see being a drop ship wholesaler is very lucrative because you can essentially just focus your efforts on selling and marketing and do not have to worry about the messy part of shipping and fulfilling orders and best of all you never have to stock inventory. Every sale results in a profit, bottom-line!