When it comes to running an eCommerce business, one of the biggest decisions is whether to wholesale or dropship products. While both strategies have their advantages, there are some key differences that merchants need to take into account.

Dropshipping

Dropshipping is a popular eCommerce strategy that allows merchants to outsource inventory management, order fulfillment, and shipping to external partners. This allows merchants to save time and money, as they don’t need to buy and store large amounts of stock or handle fulfillment and shipping. Additionally, dropshipping allows merchants to offer a wide range of products without having to invest in inventory.

Wholesale

Wholesale, on the other hand, requires merchants to take responsibility for their own inventory management, order fulfillment, and shipping. This means that merchants have to buy large amounts of stock upfront and store it in a warehouse. Additionally, merchants need to handle the entire fulfillment and shipping process themselves.

Comparison

Below is a comparison of dropshipping and wholesale:

Dropshipping Wholesale
Outsources inventory management, order fulfillment, and shipping to external partners Merchants take responsibility for inventory management, order fulfillment, and shipping
No need to buy and store large amounts of stock Need to buy and store large amounts of stock
Allows merchants to offer a wide range of products without having to invest in inventory Need to invest in inventory

Conclusion

When deciding between dropshipping and wholesale, merchants need to consider their own resources, time, and budget. Dropshipping is a great option for merchants who don’t have the resources to handle inventory management, order fulfillment, and shipping, while wholesale is better for merchants who have the resources and budget to invest in inventory.