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Drop Ship Wholesale Company: Choosing A Wholesale Company To Dropship For You

(See Part 1: Drop Ship Wholesale)

When choosing a drop ship wholesale company, here are some questions you might ask:

* Is the company a manufacturer or wholesaler? This isn't always easy to determine because there are unscrupulous people who are simply resellers themselves and will lie to you. If you're dealing with the infamous 'middle man', he will be making a profit, too, and your costs will be much higher. Call the dropship wholesale company and see if they have an extensive voice mail system, a warehouse and check their invoices and terms. If some guy is running a scam out of his spare bedroom, it's usually not that hard to spot.

* Is the dropshipper charging you some kind of membership or setup fee? If so, they are probably not legitimate because very few real wholesale companies have such a requirement.

If they want to give you a website or charge you significant fees, it's time to put on your running shoes!

* What does the wholesale company charge for shipping and handling? If the cost is too high, you won't have any sales because you won't be able to compete in eBay's price driven marketplace.

* How does the drop ship company accept payment? Typically, for new customers, credit cards are the preferred way to do business. After a time, or if you have a business history with several references, you might be able to get "net 30' terms. This means payment is due within 30 days, rather than when you order from the wholesale company. This is great, of course, because it means you can pre-sell your merchandise before you get to pay for it.

Choosing a drop ship wholesale company wisely, is obviously a necessary part of your success. And once that is done, you will need to consider your wholesale drop ship merchandise.

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