One of the most common misconceptions when someone begins working in the dropship or wholesale arena is that there is only one wholesale price, and that is what they are receiving. This in turn leads to a lot of frustration when one sees other people selling their same product for far less. If they’re receiving the wholesale price, how is it that anyone can get something cheaper?
The reason for this is that the wholesale price is generally based off of the amount of product you are willing to purchase at one time. At the dropship level, for instance, you are receiving a wholesale price, but your price point is going to be lower, because you are ordering a single item at a time. If one of your competitors approaches the supplier, and asks if they can get a better price if they purchase ten items at once, for instance, most suppliers are willing to do so.
The strength of having a dropship site is that we are not having to carry any inventory, or do any of the shipping ourselves, but that of course comes with downsides. Our profit margins can be solid, but if we are trying to compete price per price against a competitor, it is he who orders the most at once who will be able to negotiate the lower price. Purchasing at wholesale is the natural evolution of our business, which is why it is important to realize that there is not any singular wholesale price, but it is instead a fluid concept, that we can use to our advantage as our business grows!
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