Here Is Something You Want To Avoid With A Wholesale Drop Shipper

By Brad Beiermann

As an ecommerce business owner, have you ever experienced the following situation?...

1. You find a product you would really like to carry on your website.

2. You quickly and easily locate the wholesale drop shipper in the Internet. No Minimums and no middleman involved.

3. You now have the product on your site.

4. A customer takes the time to send you an email and says they can get the product on several other sites 50% less than your asking price.

5. You go to the other sites and find the customer to be correct.

6. Their advertised price is exactly your wholesale cost.

7. Your heart sinks.

If you are the lucky few who have never experienced this situation, you can stop reading. However, for the majority read on...

There are actually several things that can cause the above scenario as it is a common one. Many business books address various methods of getting through a difficult situation as described above. However, virtually no one has addressed the situation from a drop shipping perspective. We are going to discuss this right now.

How could a wholesale drop shipper possibly come into the picture as part of the problem? After all, the drop shipper is doing a great job of getting single quantity items direct to your customers for the lowest possible price. They have fast dependable service. They will put your information on the return label. You can track your orders with them. Their billing system is easy. They keep you up to date on inventory issues. They are doing everything correct. Everything seems perfect. Right?...WRONG!

How did this happen?

The problem with this drop shipper came on the day you found them. Earlier, we said you located them quickly and easily on your search. If this drop shipper was really easy to find on the Internet, it is also easy for everyone else to find. As a result, thousands of other businesses are probably using this same drop shipper. The products imported or made by this drop shipper have saturated the market. Although you might not find the products at a major retailer, you will find them on the Web easily. Very easily. On a Google search, the products may show up on thousands of sites. This is clearly an oversold drop shipper in the Web. Why are some of the competing sites selling the products at the original wholesale cost? Some newer businesses will sell the items without a profit in hopes to under cut everybody's price just to get business started. Often this strategy fails and only destroys retail opportunities for everyone else.

How can I avoid this? 

First you want to identify the problem. The problem being an oversold wholesale drop shipper with market saturation. If you find a wholesale drop shipper, check out if their products show up everywhere on the Web. You might also want to see if the mega retailers carry these products locally. If you see a wholesale drop shipper's products everywhere on the Web, they could be oversold and could be at a commodity status. This means the competition for sales could be extremely fierce with the wholesale drop shipper's items.

Second, you might want to stay away from the mass marketed brand name products. I have written about this in other articles as we call this the "brand name myth."

Finally, perhaps most importantly, you might want to check out a drop ship research company focused on unique niche product drop shippers. Hienote Inc. carries the Drop Ship List Directory. The Drop Ship List Directory is an online directory containing many different categories of wholesale drop shippers. Again, the directory is focused on product uniqueness rather than big brand names or mass quantities of products. The directory can save a ton of your time and frustration.

There are many product retail opportunities waiting to be discovered on the Web. By sticking with some of the rules of thumb just mentioned, you can find yourself making much more significant revenue from your online retail business.

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HienoteDirectory.com specializes in product sourcing, exhibition marketing, and assisting small businesses locate wholesale drop shipping companies. You can visit their site at http://www.hienotedirectory.com. Get a FREE copy of the exciting e-book that is taking the internet world by storm, "Starting Your Online Retail Niche With Drop Shipping" Just go here: http://www.hienotedirectory.com/drop_shipping_ebook.htm to grab your copy today...it's FREE!