is a game changer of a traditional conduct of business. If you are limited in budget and still think about starting your own online wholesale business, familiarize with "dropshipping
". Dropshipping is a type of business activity on the Internet that involves disposal of vendors' goods by a middleman known as "dropshipper".A dropshipper buys goods from vendors only after getting payment from a consumer
. Profit of a middleman is generated by means of the difference between a wholesale price (which is paid a vendor by a dropshipper) and a retail price (which is paid a dropshipper by a consumer).
Dropshippers do not keep stock, so a warehouse with goods for sale is not needed. "How come?" you may ask. The point is that a dropshipper (1) sets up an online store with goods a vendor has in stock, (2) promotes products on Facebook, Instagram, Google Ads, or else. When the dropshipper gets an order and payment, (3) he/she forwards this order together with delivery details to a vendor.This vendor is in charge of packing and shipping the order to the customer. In the end, this customer doesn't get a notification about purchasing from a middleman (not a vendor).