If you are starting your own drop shipping business or if you already own one, you should take advantage of wholesale prices when you purchase in bulk the many items that you will sell to the public.
You must have invested some money in the inventory of goods that you keep in stock in your place.
But you should be aware that there is a better way of going about drop shipping with just a minimum need for your own capital.
You can always strike up an agreement with a wholesaler for a partnership that will be beneficial to both of you.
You can serve as the selling force for the goods already in the possession of the wholesaler, who might be having problems on how to dispose of his goods inventory.
You could be the right person he is looking for too to improve the sales of his goods.
He has invested so much on those goods already and he has to keep them moving to recover his money used in their purchase.
To maximize the margin that you can realize, arrange with the wholesaler to give you his best wholesale price for the goods.
He will just be too willing to accommodate you as he needs also your expertise in promoting and selling his goods.
This will benefit both of you anyway - he gets his goods sold and you stand to make a good profit in your new drop shipping enterprise.
From hereon, after you sign the contract with your wholesale partner, you will just concentrate on expanding your sales efforts online as you will be freed now of the responsibility of delivering the goods to your buyers.
This function is now turned over to your wholesale partner.
He can easily do this with the vehicles that he has now.
So, you can see that drop shipping as a business is a very smart way of going into business online.
Wholesalers of course will welcome the coming of your new venture as he actually lacked the sales arm that he has wanted to have long before.
Your partnering with him now is the answer to what he needed in his wholesale business all along.