The Truth About Wholesale Dropshippers

People that are just getting started in business or have limited budgets will often turn to wholesale dropshipping as a means to minimize their risk. Everywhere you look there is somebody trying to sell a wholesale dropship list or membership that they CLAIM is legitimate. The fact is that many wholesale dropshippers are actually retailers that pretend to be wholesalers. This article will teach you how to spot out the TRUE wholesale dropshippers from the fakes.

Spotting Fake Dropshippers

Most wholesale dropshippers that are not legitimate will often charge you a membership fee before you can access their product line. A lot of these dropshippers will not even show you a sample price prior to becoming a member. If they do show you some sample prices they will often hide the high shipping and handling price to make their prices appear to be wholesale. Some of the dropshippers will even hide the fact that the product is refurbished which brings down the value significantly. Prior to joining any wholesale dropshipping program I would recommend you email the company and ask them for some sample prices which includes the shipping costs and condition of the products. Go to a website such as Amazon.com and compare their lowest prices to the prices offered by the dropshipper. Chances are you will find out that you can purchase the product for a lower price from Amazon.com then what the dropshipper is offering. This is mainly because the wholesale dropshipper is actually a discount retailer which turns to people who are new to business and want an easy way to get started. I would consider these companies to be scammers or con artists because many of them are actually trying to make money solely from their membership fees. By the time you figure out their program is not legitimate they will be reluctant to issue you a refund. My advice is to stay as far away from these companies as you can and to search for legitimate sources.

The True Wholesale Dropshippers

If you want to purchase from legitimate wholesale dropshippers you will need to acquire the legal business requirements from your state and federal government. Almost all true wholesale dropshippers are not willing to wholesale to the general public. These dropshippers are strictly business-to-business and will require a tax id or resale number prior to purchasing from them. In fact, many of these dropshippers do not even define themselves as a dropshipper. They would rather prefer for you to purchase from them in bulk because it's easier and more profitable for them. Some will require a small dropshipping fee to make up for their losses. This fee is well worth the money since you're saving a lot of time and money by not having to warehouse or ship the product yourself. The easiest way to find a legitimate wholesale dropshipper is to find a wholesaler that requires a tax id or resale number. Email the company and ask them if they are willing to dropship directly to your customers. You may find out that many of the companies are more than willing to dropship directly to your customers. Some may require a minimum order requirement before they can dropship. The more business you can generate for these wholesalers, the more likely they are to be willing to dropship for you. The great thing about using these dropshippers is that most people are not using them because they simply don't know about them. Remember, if less people know about your source, the more likely you are to succeed in your business.