Wholesale Vs Drop Shipping – Choosing the Best Option For Your C

Have you been searching for the best way to make money online?

Have you been looking for classified websites and various sales to see what customers are looking to purchase? You know that you can make money by selling clothing online, but you just are not sure how. The first obvious thing you need to settle on is a wholesale supplier, but where do you start?

There are basically two ways to get the clothing you need to sell. You can either purchase the clothes wholesale or work with a drop shipper. If you are new to this business, it can be a little confusing when deciding which option to use.

Wholesale

Wholesale allows you to buy in bulk quantities at discounted prices. Generally, you are purchasing very large amounts upfront so that you can get a low per-unit price. When you resell the merchandise, you are able to price it accordingly and make a profit on each unit.

While this sounds simple enough; you need to calculate into your selling price the cost of storing your clothing, having it shipped to you and then having to ship it to your customer.

So, if you have a t-shirt with a per unit price of $2.50 and decide to charge $10 per shirt, it seems as though you make $7.50 per shirt. In actuality, if you are paying $100 per month for a storage facility, and $70 shipping per gross on 1000 t-shirts, your actual cost per unit becomes $2.70. While this only2 Revisions reduces your profit by twenty cents per shirt, you have really made $200 less than you calculated on your order.

This does not include the time you spend on preparing the orders and shipping them yourself.

Of course, this also assumes that you are able to sell everything that you ordered. There is a risk with wholesale that you may not sell everything and that you could be stuck with merchandise, or have to reduce your selling price. Either way, it cuts into your profit margin.

By the way, you have invested your own money upfront, before any customers have even seen your clothing. Once again, there is the risk of losing your investment.

Drop Ship

Drop shipping allows you to partner with the clothing supplier and reduce the risks found in wholesale relationships. The storage and shipping of the clothing stays with the supplier.

You do not need to purchase anything up front and will only pay for the merchandise once it has been bought. Once it is paid for, you simply forward the order to the drop shipper, who then packages the clothing and ships it directly to the customer.

Once again, this sounds great. But there are some challenges with drop shipping as well. Since the company is doing the vast majority of the work, this is reflected in the prices that they offer to you. You need to keep this in mind when comparing prices for the clothing and wonder why one supplier is so much higher than another.

Another issue with drop shipping is that you also give up some control over your merchandise. You do not see the quality of the clothing being sold. You will need to make sure of the reputation of the supplier and feel confident that they are sending out quality clothing that you agreed on. The customer does not care if the problem with the clothing came from you or the supplier.

They purchased the clothes from you and your business is what will ultimately suffer if the buyer is not satisfied.

Both methods have advantages and both have their challenges. You need to understand the type of business that you are going to run and see which option is most efficient, effective and profitable for your business.

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