The Drop Ship Wholesale Company – What to Look For

Monday, February 8th, 2010

When searching for a drop ship wholesale company there are many scams and obstacles that you need to avoid. In order to make good money drop shipping you need a quality product source. Not some middleman company but a legitimate wholesale source or a direct link with a manufacturer. Real drop ship wholesalers do exist out there but they are not easy to find. You will need to do some serious research before you select your product source or you will have major problems down the road.

The majority of drop ship companies on the web are actually middlemen or MLM companies. They source products from real wholesalers and then mark up the price and sell it to you. This is a very common scam and the search engines are loaded with these guys.

Here are some dead giveaways that you’re dealing with a middleman:

+ They charge monthly fees.

+ They don’t ask for a tax ID or resale certificate.

+ They offer the same product lines as another source or operate under multiple aliases.

+ They make claims about how much money you can make.

+ They don’t list a real business name, address, and phone number.

If you’re not sure, give them a call. If a professional operator doesn’t answer the phone, get out of there. Also you should check with BBB.com to see if they have a complaint history. Generally, you don’t want to choose a company from the first few pages of a search engine. This area is saturated with middlemen and generally has far too much competition anyway.

You’ll want to differentiate yourself from your competitors if you want to make good money. By choosing a common product source that is easy to find, you’re leaving yourself open to loads of competition. If you’re selling the same thing as everyone else at the same prices, how are you going to win? You can try to outmarket them, but most likely they are going to find the same thing for cheaper somewhere else. You’re not going to succeed this way.

Think of other ways to get in touch with manufacturers and wholesale suppliers that your competitors won’t. Then at this point you can start marketing and selling. Don’t just go in thinking you’ll make sales because you’re online. You need a unique and legitimate drop ship wholesale company to partner with if you want to make it in drop shipping. Don’t choose the most popular or convenient option. Like anything else, if it seems too good to be true, it probably is. The most convenient suppliers are almost all middlemen and they have thousands of loyal worker bees promoting their products. Not only will your profit margins be killed with the marked up pricing, but you’ll be buried in competition.

Don’t give up. You can make it BIG in drop shipping with the right wholesale source. Just think outside the box and don’t give in to the temptation to sign up for a convenient monthly service or other scam.

Want to learn more about the insider secrets of drop shipping? Check out Drop Shipping 4 Idiots. Created by industry professionals, it’s guaranteed to get your drop shipping business online and making big profits in no time!

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