Pros and cons of dropshipping wholesale electronics

03, Dec 2012 by admin in wholesale electronics     No Comments

Dropshipping appears as a solution applicable to all types of wholesale merchandise, incl. wholesale electronics. In fact, there are lots of offers from dropshippers, who are interested in cooperating with ecommerce retailers and wholesalers. Is it really worthwhile though?

Benefits of dropshipping electronics

– one does not have to invest funds in the merchandise; all shipping aspects are arranged by the supplier, products are being sent directly from the manufacturer’s warehouse

– suitable for all grades of merchandise; such model can be effective for regular wholesale electronics supplies, but also works for surplus electronic equipment or even cheap graded goods.

– cashflow – before a dropshipper will be paid for products ordered by the customers, the shop can invest the collected money in order to increase profit.

– access to cheap wholesale electronics for sale – lots of Chinese manufacturers are offering a dropshipping model. Their wholesale prices are really low, and the lower the wholesale price is, the bigger earnings are.

Disadvantages of dropshipping wholesale electronics

– limited control – the stock is fully managed by the supplier, so a seller has little to nothing to say about the shipping time and handling the products

– prepayment – it is not the best-possible payment term for the customer; just remember that in order to have sales at a reasonable level, You will have to use some well-known solutions like joining auction portals and utilizing secure payment methods. All of these charges Your business, so the final earnings will be lower.

– shipping time – a shop which cooperates with suppliers of wholesale electronics under a dropshipping agreement, has nothing to say about the delivery time; You then have to keep in touch with the supplier all the time, in order to answer the cusotmers’ questions.

– backorders – not only because the products has been already sold by the customer, but also for all prodcusts sold under warranty. And electronics are usually sold under warranty.

Is it then worth time and effort? In our opinion, the better way of making business will be buying cheap graded wholesale electronics directly from the wholesalers, and then reselling them to the public. In the long run, it will save not only time and effort, but will be more profitable. And finally, as a 100% seller You appear as a far more legit sales person, because You are managing the whole proccess of sales on Your own.

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