Choosing Wholesale Company: Physical Product vs. Drop Shipping
When it comes to an online boutique business, the success is for the most part hedged on the efficiency and nature of the supply chain chosen. A lot of online boutiques choose to work with wholesale supply companies to purchase the products to resale on their store. Working with wholesalers is a decent choice but finding the right ones is the difficult task. Price, quality and reliability are at the top of the list for most retailers. Here at Online Boutique Source we’ve compiled a comprehensive list of wholesalers to choose from in our Wholesaler directory, and below we discuss some ways to evaluate which wholesaler is right for you.
Which supply models should your online boutique use?
Drop shipping is a supply model where the retailer takes the orders and sends them to the wholesaler, the wholesaler then packages and ships the product to the customer. In the physical product model, the online boutique owner purchases the product from the wholesaler and stores it until an order comes in and then ships it to the customer.
Whether to go for a drop shipping model or the more common physical product wholesaling is a decision to be made based on what you want to achieve for your business.
Considerations for the Physical Product Model
The two supply models have some differences based on what each can bring in for your business. The physical product wholesaling is more common for wholesalers so you will find a much larger variety of products for this model, but it requires the retailer have more capital up front, the ability to store the inventory and pretty good shipping channels in place. Some of the pros of using physical product model include:
a) You always have the confirmation of the inventory levels.
b) You can source products for your store from a variety of channels including handmade products.
c) Shipping products for your own online store also gives you the opportunity to package your orders where you can use custom-made packages for promotion and branding.
Rewards of the drop shipping model
Drop shipping enables wholesalers to make easy startups and operate at minimal cost. It also enables the sellers to reach more potential buyers due to the ease of establishment and operation. This can easily be linked to the lower risks ran by their operators. The only serious issue with this model is you are limited to the products your drop shipper supplies. Finding reputable and reliable drop shippers can be challenging. Your branding and packaging are at the whim of the drop shipping company. Another concern is possible image denting when a customer orders a product that the manufacturer does not supply within TAT or if the product has poor quality. I recommend when starting with any drop shipper, order a few sample products before adding the items from that company to your website. We have recently looked at Doba drop shipping which looks like a great option for more drop shipper options check the wholesalers directory.
The choice will depend on your goals
To choose the best wholesale company, you need to closely analyze the nature of your business. If the basic goal is to reach more customers or cover a bigger geographical area, drop shipping is perhaps the best bet, while if you want a more personal approach to your business and want to be more hands on with your customers and products then physical products is the way to go. Physical products are also a good option if your goal is to bring your store offline.
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