Types of Drop Shippers and How to Choose A Drop Shipping Companies Wisely?

As we know, drop shipping is a brand new business model based on the modern internet closely linked world. Under drop shipping system, everyone can start his own business on an online store without worry about any inventory, distributing, shipping, and nearly with zero-cost but make large profit outside world jealous. Perhaps you are hanging on the internet and search for a drop shipper to help you with the first online business, stop here if you still don’t have much ideas about the type of drop shippers, because drop shippers can be a manufacture, a wholesaler or even a middle man. Typically, there are two types of dropshippers: dropship manufacturers and wholesalers, drop shipper aggregators. To know the differences between them, please read on:

Dropship manufacturers or wholesalers

Naturely, manufactures and wholesalers sell merchandise in bulk, but with the development of e-commerce many manufacturers and wholesalers have begun to offer drop shipping services to small businesses, and operating directly with the product manufacturer or wholesalers enables you to get products at a lower and affordable cost.

Drop shipper aggregators

Drop shipping directly from manufacturer or wholesalers can minimize your operating cost to the large extend, but it’s tough to find them on the internet because of they usually don’t have much time put into advertising online. That result in emerge of the drop shipping aggregators. Aggregators carry out aggressive web advertisements on the internet emphasizing on their multiple brand name products to be sold online. They show a list of items in their virtual warehouse that exist in other real wholesale companies. They therefore do not have any item in the stock but make money from handling or membership fees. The moment customers order something from them, they in turn order it from the real wholesalers while marking up the cost and charging you the transaction fee.

Now you know that a drop shipper may either be an aggregator or a real dropship manufacturer or wholesaler, the question is which type of drop shipper to choose? It’s clear that dealing with a real wholesaler or manufacturers are more profitable than an aggregator if you're are lucky enough to find a real drop ship wholesaler or manufacturer giving your competitive prices for your particular merchandise. As mentioned already, manufacturer or real wholesaler normally don't advertise their drop shipping service like aggregators do, which makes it hard for your to find out hard to find in simple free Google searches even though there are plenty of manufacturers and wholesalers willing to drop shipping for small business. Assume you want to start your online business by dealing with a drop shipper from China, you may need the help of “drop shipping directory” like HKTDC.COM and DHGATE.COM to help you connect with real drop shipping companies. Once your company has developed big enough, to share bulk discount from you supplier or brand your packages, inserts and, shipping labels, you are always recommended to rent a warehouse fulfillment center in China to give you a complete control over inventory management and order fulfillment.