When a company decides to use a drop ship wholesaler from a drop ship directory, they are also making the decision to not hold inventory on that product. This is a great benefit to a lot of companies as they often do not have much storage space. In fact, some companies are home-based, making it almost impossible to hold great quantities of inventory.
There are not as many risks associated with drop shipping products as storing inventory. For example, a company that fails and is not drop shipping will have to try and liquidate their inventory. A company that works with a drop shipper from a drop ship directory will not because they have no inventory to liquidate.
The retailer will not have to worry about shipping the product out, the wholesaler will take care of that part. If the wholesaler blind drop ships than the retailer can actually have their information printed on the package instead of the wholesalers information.
Drop Shipping allows a retailer to sell a broad range of products online. They also have the ability to test new products with very little risk.
There are also directories full of wholesale suppliers at your disposal. These directories make it a lot easier to locate suppliers of the various products to be sold.
