Wholesale companies offer discounted products for you to list on your site.
You order and pay for the products then resell them.
You have to read the fine print with wholesale companies- a lot have requirements to order . These can be anywhere from $ 50.00 to $ 500.00 or it could be by the number. You only need one, but you have to buy 10.
This does not really help you out.
You get an order for one t shirt. You sell the t shirt on your site for 10.00, your cost is 3.00 but you have to order 10 at a time. So, you have to spend $ 30.00 plus shipping of $ 10.00 for total of $ 40.00, but you only took in 10.00 plus
$ 5.00 shipping. Your loss on that is $ 25.00
If you can afford to buy 10 at a time Great!, but how long will those t shirts sit there before they sell?
Do you want your money tied up in product?
When you come across the wholesale company that wants you to pay to be a member- run!
There are hundreds of wholesale companies out there that do not charge you anything.
You will also find that most of the drop ship companies have all the same products.
Drop Ship usually works a little better for you.
You do not have to purchase any product until it is sold.
You post the products on your site, take order , collect money plus shipping. Then you order from the company. Most companies offer 20%- 40% off for drop ship accounts.
You can run into the same problem as with wholesale- some companies have requirements.
Do not pay anyone to sign up as a drop ship member!
There are companies that do not charge, have no min to order, and do not over charge on shipping.
1. No order requirements.- You want to be able to order one item at a reasonable price.
2. Affordable shipping cost- some companies charge 8.00 or so to send a 2.00 coffee mug.- You lose money!
3.Shipping time- you want your order shipped out within 48 hours.- some companies it may be weeks.
4. Quality of product- some of the drop ship companies have 1000's of the same product. These products are cheaply made to sell in bulk and fast. These products may sell the first time around, but due to them being poorly made you will not get repeat customers and once word gets out that your products are not good- no one will buy.