The Wholesale Forums

[cash415]

Hi, I'm new here. I have been wanting to do some type of e-commerce site for quite sometime but never did the adequate research in order to start my own business until now. I just found this site and want to use this as a reference tool.

Here's my question, for someone who is looking to start his own homebase business, with limited capital, would people here recommend a dropship or wholesale method? Considering this is my first time doing this, I understand both dropship and wholesale methods have their own advantages and disadvantages. Basically, I want to keep my operation easy and smooth. I'm fine with keeping goods in my property, but my current capital is limited, and I don't feel comfortable sending someone $5-6k without actually seeing the goods. It's too much of a gamble in my opinion.

I have done my research and have spoken to some reps on Alibaba regarding dropship service. The only problem is that most of these suppliers/manufacturers are located in Asia and I live in California. So if someone buys a towel (example) from me for $5 dropship, shipping using FedEx Express will run me another $40-$50.

Am I missing something here?

[Andy777]

If you have money to buy in bulk, go with wholesale all day long!

[cash415]

Originally Posted by Andy777

If you have money to buy in bulk, go with wholesale all day long!

That's the problem, I don't have a huge capital to do wholesale. I mean, I do have the capital but I don't want to throw all my money in one basket. I want to gain more capital and then do the wholesale method. This way if something goes wrong I'll have enough funds to support the mishaps that happens with operating any business.

[cash415]

btw, what is a good starting capital to start doing wholesale? i know this question depends on the product, but let say we're talking about importing something that cost about $10 at wholesale.

[Andy777]

It's not that much about the product itself as your "Buying Power".

If the product costs around $10, you should be able to get a wholesale deal for 100 units.

[Pete]

Dropshipping is a great way to get started. The US is the home of dropshipping, there are literally thousands of dropshippers who can supply you. Until a lady bought me out I had sold about $250,000 worth of goods from a single dropshipper in California. They did have a $ 300 fee, but will take monthly payments, I jumped in with the full amount at the start, but that was my only startup costs.

I did not sell on ebay, just from my own website. I did expand into a kiosk in a shopping mall, but continue to dropship right along.

I'm now the actual dropshipper, I ship from China, but not at $40 or $50. I use the Hong Kong Postal service and shipping is negligible. You can see here, my prices include shipping - http://wholesale-district.com/dropship

Dropshipping is good. You will find many who say hold your own goods, but that's hard whn getting started and even once you get some money built up, if you are with a good dropshipper you will have to think twice about investing in inventory when you can have a good income just handling money and never touching the merchandise.

When things slow down you won't be chewing your fingernails about all that inventory just sitting on the shelf, you won't have to worry about that "sure to e a hit" item you bought a gross of and sold 3 in the past year. Holding inventory is not all positive, by far.

Should you decide to stop, you simply stop with dropshipping, If your business starts to lose money with goods on the shelf and you decide to get out you will be lucky to get 20% of the value of your stock on hand.

There are downsides to holding inventory, but with the right dropshipper, it can be nothing but good!
.

[Udt123]

Hi pete, I am from the US and I am looking to do some dropshipping. If possible, can you shoot me a PM with how much you are charging for membership, dropship price per order, and what do you have for inventory?
Thanks!

[Pete]

No membership fees.

Here is all you need - http://wholesale-district.com/dropship
.

[cash415]

Originally Posted by Pete

Dropshipping is a great way to get started. The US is the home of dropshipping, there are literally thousands of dropshippers who can supply you. Until a lady bought me out I had sold about $250,000 worth of goods from a single dropshipper in California. They did have a $ 300 fee, but will take monthly payments, I jumped in with the full amount at the start, but that was my only startup costs.

I did not sell on ebay, just from my own website. I did expand into a kiosk in a shopping mall, but continue to dropship right along.

I'm now the actual dropshipper, I ship from China, but not at $40 or $50. I use the Hong Kong Postal service and shipping is negligible. You can see here, my prices include shipping - http://wholesale-district.com/dropship

Dropshipping is good. You will find many who say hold your own goods, but that's hard whn getting started and even once you get some money built up, if you are with a good dropshipper you will have to think twice about investing in inventory when you can have a good income just handling money and never touching the merchandise.

When things slow down you won't be chewing your fingernails about all that inventory just sitting on the shelf, you won't have to worry about that "sure to e a hit" item you bought a gross of and sold 3 in the past year. Holding inventory is not all positive, by far.

Should you decide to stop, you simply stop with dropshipping, If your business starts to lose money with goods on the shelf and you decide to get out you will be lucky to get 20% of the value of your stock on hand.

There are downsides to holding inventory, but with the right dropshipper, it can be nothing but good!
.

My thoughts exactly. I don't want to get over my head without testing the industry first. I know there are other means to supplying customers what they want, eBay and Amazon are just alternatives. I'm down to open my own website and sell my products using that method, the only problem I have is that I can't find profitable drop shipper located in the states. Seems like all the suppliers I have researched on Google are either suspect or located in Asia. The sad part is that I don't even want to sell the popular products and I still can't find a direction.

Anyone here can help me out with more leads? The one on top is a start. Thanks

[ttyl123]

if you are looking for real authentic items, normally they cost more, so see to be impossible to get them with limit capital.
if you are interested to actually seeing the items, I have many wholesales contacts in S. California.
maybe you can send me a email.
thanks