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wholesale companies

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butter281615 | 00:59 Mon 24th Nov 2008 | Business
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hi, has anyone hd any experiences with these wholesale companies that you buy from but they ship the product when you sell it. all i know is they charge you money each month for membership and you have acess to all of their products to sell. any input would be appreciated.thanks
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You are talking about what is commonly known as "dropshipping" . This is a fantastic way to build a sales channel, however you need to understand that in most cases they take no responsibility for undelivered items and that leaves you with the debt
There are many drawback to using Drop-Shipping. You do not know in what state the goods are sent and they will not include anything at all bearing your name. I for one do not like using people who use dropshippers, you do not know this until goods arrive in just a plain box - most impersonal.
Also the dropshippers have access to your customers names which you have paid handsomely in advertising to obtain.

I am in the unhappy position of using a company for supplies who took over from a previous company who had to close. This current company also do dropshipping, but the label used to send the goods bears their name and address. Now as this current company also operate retail companies, it is not a good situation that they would have my customers names if I were to use them for dropshipping!. They may well circulate ALL the names of people they have delivered to giving "news" from their retail company.
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