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This article is part of our series on wholesale and dropship services.

If you’re ready to invest in your online busienss and access a large volume of inventory, keep reading. We’ll examine the pros and cons of using a drop shipper that charges a recurring fee. What is a dropshipper?

Some dropshippers charge recurring fees, often on a monthly basis, to ensure that they primarily work merchants who are motivated individuals and companies. We maintain lists of dropshippers here at Webplus Shop. Call us toll-free at 1-866-338-8883 (international: +1-605-229-0307) to talk about specific wholesale companies.

Pros of Recurring/Monthly Fee Dropshippers

• Dropshippers and wholesalers that operate monthly memberships often have the largest and most diverse inventory.
• Products are typically of better quality at a lower price. This means you can have a greater profit margin.
• A recurring/monthly drop shipper also may offer name-brand products your customers will recognize.

Cons of Recurring/Monthly Fee Dropshippers

• The big disadvantage is that your recurring payment is due regardless of your sales level.
• If monthly wholesaler fees sound like too much, consider a One-Time-Fee Dropshipper

Leverage a Recurring/Monthly Fee Dropshipper Relationship

The recurring/monthly fee wholesalers are the real deal of online sales. Commit to good marketing to ensure to reach your target sales volume each month and keep current with your wholesaler membership. Good marketing and clever pricing can eventually result in a positive return on investment.

This article is part of our series on wholesale and dropship services.

If you have a small amount of start-up cash to invest in your online business or just want to expand your inventory, keep reading. We’ll examine the pros and cons of using a drop shipper that requires a one-time fee. What is a dropshipper?

Dropshippers that require a one-time entry fee simply ask that you pay once for the continued use of their services. The fee helps ensure that the dropshipper primarily works with motivated individuals and companies. We maintain lists of dropshippers here at Webplus Shop. Call us toll-free at 1-866-338-8883 (international: +1-605-229-0307) to talk about specific wholesale companies.

Pros of One-Time Fee Dropshippers

• One-time fee dropshippers tend to have decent wholesale prices made possible by larger, more frequent orders from their well-funded and motivated merchants.
• Larger merchant orders also mean better selection and better availability of inventory.
• The initial fee usually accompanies capable support when you’re getting started and help with any issues later on.
• Some products may even be from trusted, name-brand manufacturers.

Cons of One-Time Fee Dropshippers

• The initial fee is usually several hundred dollars or sometimes more. If this seems like too much, consider a Per-Order or No-Fee Dropshipper.
• It may be hard to predict the value of your up-front investment to the dropshipper.

Leverage a One-Time Fee Dropshipper Relationship

Do extensive research on the dropshipper. Ask their sales staff direct questions about anything not fully covered on their website. You’re going to want to find a dropshipper that is suitable for the long-term. The longer you’re selling, the greater your return-on-investment will be.

For more information about wholesale dropshippers or starting your own online store, call us toll-free at 1-866-338-8883 (international: +1-605-229-0307) or send us an email.

This article is part of our series on wholesale and dropship services.

[photo by Allison Felus is shared]

This article is part of our series on wholesale and dropship services.

If you’re looking to open and online store with no up-front investment or want to cheaply supplement your existing online store’s inventory, keep reading. This article will help explain some of the pros and cons in regards to the no-fee and per-order drop shippers. What is a dropshipper?

No-fee dropshippers simply require that you sign-up with them to use their services. Per-order dropshippers charge a small fee each time you place an order for products. We maintain lists of dropshippers here at Webplus Shop. Call us toll-free at 1-866-338-8883 (international: +1-605-229-0307) to talk about specific wholesale companies.

Pros of Per-Order & No-Fee Dropshippers

• You have very little or no overhead on your inventory. You don’t have to keep any stock on hand and you don’t have to worry about packaging and shipping from home.
• “No Sales, No Fees.” This means that if you experience a slow month, you won’t be paying a monthly wholesaler fee that eats into your profits.

Cons of Per-Order & No-Fee Dropshippers

• Often the products will be at a higher wholesale cost and you won’t have as high of a markup.
• Sometimes the products are not name-brand which can, but doesn’t always, indicate questionable product quality.

Leverage a Per-Order or No-Fee Dropshipper Relationship

You can easily use a no-fee or per-order drop shipper to your advantage. Not only does it have zero or very low overhead cost, it also allows you to widen your catalog with no initial fee. A larger catalog can quickly widen your customer base.

Lastly, keep an eye out for drop shippers with steep minimum order requirements or consistently low quantity-on-hand (i.e. in stock) amounts. These can result in an inconvenience to both you and your customers.

For more information about wholesale dropshippers or starting your own online store, call us toll-free at 1-866-338-8883 (international: +1-605-229-0307) or send us an email.

This article is part of our series on wholesale and dropship services.

Drop shipping is a form of supply chain management where one company, the wholesaler, manages the inventory and shipping while another company, the merchant (You!), promotes the products and takes orders from customers.

When a product is purchased, the merchant sends the customer’s order info and shipping details to the wholesaler. The wholesaler then ships the goods directly to the customer. Merchants earn profit by selling the products at a higher price than the low wholesale cost of the items.

Signing-up with a wholesaler usually done through one of the following types of plans…

• Recurring-fee membership to the wholesaler’s inventory and services
• One-time, up-front investment for a lifetime membership
• Small, per-order fees paid when products are ordered
• No-fee, free-to-use drop shipping services and inventory

Over the next several weeks on the Webplus Shop Tips & Tricks Blog, we’ll examine these different plan types along with the pros and cons of each method.

Read all of these articles on wholesalers and dropshipping.

If you would like specific info on wholesale relationships available to you as a Webplus Shop Merchant, please give us a call at 1-866-338-8883.