Do I want to be a dropshipper?

I was asked to drop ship my products by couple online retailers. I am a wholesaler and have never worked as a dropshipper before. I did some research online and learned the basics of drop-shipping relationship: The online retailer sells my product with their own markup. I sold the retailer my product with wholesale price and I ship the product.

Here is my question: What benefits my business to ship product to “individual buyers” since it will takes more resources (and add more overhead) to my company as oppose to sell bulk (or even light bulk)?

Thanks in advance for your input.

 

I am about to be getting into the dropshipping business (the retailer side). Most dropshippers have a handling fee of some type, so you get paid for your time and investments. Look at the brightside, regardless of whether you are selling 10 items at a time, or 1 at a time, small sales can lead to big sales. It will add up overtime, especially if you have a motivated retailer.

 

PHPGator -- Thanks for your input. Yes, every sale counts. So what is a reasonable charge to the retailer? Care to share your thoughts? Many thanks!

 

May I ask what kind of products you are selling???

 

Consumer electronic accessories. Why?

 

I think it depends on the item. If sales are bad for that item, I've seen the wholesaler offer no charge. That is probably just to get it out of the warehouse i'd imagine. But I think average is probably $2.00.

 

I work for a site, which does more then a million dollar in dropship. Most vendors are doing that these days.

 

Thanks a lot everyone! I have a clearer idea now.

 

We help grow dropship programs by promoting them to our member network of dropship resellers. then we reduce your costs and support load by providing data services to these resellers to help them sell more of your products. we try to integrate with large programs (ie, 200, 2000, 1200, or 20000 skus). You can also review Supplier Suite for some supplier program specific solutions