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Dropshippers – The handy middle men in Supply Chain

Posted on December 31st, 2011. Written by Susan Turner.

Ask any trader who operates at a small scale and you’d learn how unpopular middlemen are. The rule of the supply chain is simple. The less are the people involved, the cheaper are the goods. The number of people involved in this chain is inversely proportional to the profit you make. While buying directly from the manufacturers would save you quite a sum on the other hand however, this saving can significantly be affected if you buy from wholesale suppliers.

Dropship retailing, in a way is no different than acting as a middleman. This is an increasingly popular mode of business that has opened doors of new opportunities for students and stay at home parents. Dropship retailing, while on one hand provides people with a decent stream of regular income then on the other hand, it also helps people find what they are looking for. The following post presents a whole new light.

Dropship retailing on eBay is quite an unpleasant thing where buyers fancy themselves ‘cheated’ upon discovering that they have bought so and so thing from a seller who in reality was a dropship retailer. So in more than one way, dropship retailers are no different than middlemen.

These retailers, like any other seller, keep their profit margins, just like the middlemen. But in their defence, dropship retailers also make several different products available to people living far and wide. The whole of their business dealing serves two purposes.

One – They bring in more business for the dropshippers. Working in association with a dropship programme does not come free of cost. Suppliers charge a registration as well as a monthly sum to retailers who wish to sell their products. By working for suppliers, dropship retailers bring in a constant stream of income for these programmes.

Two – Since they pay a certain sum in hopes of making substantial profit on suppliers’ products, they work vigilantly to bring in more and more traffic on their stores and enjoy a proportional conversion rate. By making various products available and accessible commoners, these dropshippers help online buyers find things they need.