If you’re thinking about starting a business , be it an online store or a brick-and-mortar store, there’s one crucial factor that will determine how you run your business.
When researching business models, you may have come across the terms “dropshipping” and “wholesale.”
These two are some of the most popular methods of sourcing products and both offer many benefits. Below, you’ll learn the ins and outs of dropshipping and wholesale purchasing.
Dropshipping vs. Wholesale: The Most Important Facts
With dropshipping , oman email list retailers do not keep products in stock but instead transfer orders to suppliers who ship them directly to customers. The wholesale model involves purchasing goods in bulk from manufacturers or retailers, storing them, and reselling them to customers.
How does the wholesale business model work?
When most people think of wholesale, we are now simply a technology company they usually associate it with buying goods in bulk. Think 500 to 2,000 products at once. While this can be the case, it is not always the case, and it is not all that wholesale buying entails.
Sourcing products is done by finding wholesalers you want to buy from and purchasing their products at lower wholesale prices and often in larger quantities. This can be done by contacting suppliers directly (in person or online) or through wholesale marketplaces like Faire .
Home decoration is one of many categories for which you can find wholesale products on Fair Trade.
To purchase products at wholesale prices, philippines numbers you may need to meet a minimum order value, but this depends on individual suppliers. Some do not require a minimum order value, while others may set it at €100 or €200.
How does the dropshipping business model work?
Dropshipping mainly takes place online. From product and supplier research to marketing and sales, everything happens in the digital space. In fact, you don’t even have the option to do dropshipping with a brick-and-mortar store.
You find products and suppliers (who are mostly based in China) through online marketplaces like AliExpress . After you find a product you want to sell, instead of importing it in bulk like wholesale, you import it into your online store through a dropshipping app like DSers and list it on your site.
When customers buy the product in your store, you place the order with your or dropshipping supplier and give them the customer’s order details (product, quantity, name, shipping address, etc.).
Suppliers then pack and ship the items directly from their warehouse to customers without you ever seeing or touching the product.
Main differences between wholesale and dropshipping
As you can see, the ideas behind wholesale and dropshipping are similar. It’s ultimately about sourcing goods for your store and getting them to the end customer.