Dropshipping Bulk Orders

Dropshipping Bulk Orders

Bulk dropshipping is a fulfillment model where instead of picking, packing, and shipping individual orders yourself, you send your customer’s entire order to the supplier who will then ship the products directly to your customer.

What Is the Meaning of a Bulk Order in Dropshipping?

In the traditional sense of the word, the entire concept of dropshipping relies on having no physical inventory or any touch with the product and merely shipping them one by one after somebody orders. Essentially, drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.

As the dropshipping industry developed over the years, dropshippers were continually looking for ways to make this business model more profitable. That’s how the idea of bulk order dropshipping came up.

Why Buy in Bulk with Dropshipping?

How does Dropshipping Work

Two significant benefits of dropshipping in bulk are the elimination of upfront inventory and a positive cash-flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a credit card or credit terms. Therefore, there is a period of time in which the seller has the customer’s money, but has not yet paid the wholesaler.

Drop shipping also eliminates some duplication of effort, since only one warehouse will pick, pack and ship the product. This approach can reduce total inventory management and shipping costs. These cost reductions can subsequently reduce the price to the consumer.

Is Dropshipping Different from Buying in Bulk?

Small wholesale refers to purchasing a small batch of products ahead of time for storage in your warehouse or store. Dropshipping is the process of placing an order based on a specific customer’s request.

There is no difference in terms of discounts. Both dropshipment and small wholesale have the same rates.

Is It really Cheaper to Buy in Bulk?

Absolutely yes! When you buy single items, the supplier practically has to increase the product’s base price to profit from sending it individually and covering costs such as shipping, etc.

On the other hand, when placing a bulk order, the seller can afford to decrease the item’s base price because they pay only once for shipping.

Usually, the larger the bulk order that you place, the more you can negotiate the price.

The Main Differences Between Wholesale and Dropshipping Models

Main Differences

Both of the two business models involve the selling of merchandise at a profit. Even so, each of them is distinct in several ways. These are some of the key differences between dropshiping and Wholesale businesses:  

Inventory

The wholesale vs dropshipping topic pretty much boils down to the ownership and management of the inventory as illustrated below:

Wholesale:

With the wholesale business model, you need to purchase and hold an inventory prior to selling. As such, managing a wholesale business involves inventory management.

It also means that wholesalers need to worry about it inventory storage as well as shipping costs and risks. However, having the stock in hand allows wholesalers to implement certain checks. For instance, you can guarantee your customers consistent product quality.

Dropshipping:

As opposed to a wholesaler, a dropshipper does not see the products before they are delivered to their customers. The good thing about this is that you never have to purchase or manage an inventory before selling. In turn, it reduces the initial investment as well as overhead costs associated with the business.

However, this also means that you won’t have any control over the inventory and order fulfillment in your business. As a result, you cannot guarantee your customers consistent product quality, nor timely deliveries.

That said, the success of your dropshipping business will—to a great extent—depend on the reliability and reputation of your supplier(s).

What Products Are Best to Buy in Bulk?

Any products that you sell regularly and have a long shelf life are right to buy in bulk. So if you’re off to the grocery store or warehouse club, you may want to add these items to your buy-in-bulk shopping list:

Meat; Pasta; Snacks; Olive oil; Pet food; Toiletries; Canned food; Baking staples; Breakfast items; Cleaning supplies; Diapers and wipes; Food storage bags; Paper products; Protein bars; Whole Grains and Brown Rice.

Be careful when it comes to food, supplements, makeup, creams, lotions, etc. Some of these can require special storage conditions or have an expiry date.

How to Choose Suitable Products?

When deciding if a product is suitable to order in bulk, ask yourself these questions:

Have I budgeted for it?

What is the price per unit (or ounce)?

Do I really need so much of this item?

Will this go bad before I can eat all of it?

Do I have enough freezer or pantry space to store all of it?

What Are the Advantages of Bulk Order Buying?

Bulk order buying has many advantages for dropshipping businesses:

No out-of-stock risk;

Better profit margins;

Lower product prices;

Discounts and sale prices;

Consistent product quality;

Good supplier relationship;

Best for creating a branding;

Best for ready-to-scale businesses;

Best for proven best-selling products;

Suitable for private label and white label drop shipping;

Can a Dropshipping Agent Help Me with Bulk Order?

Dropshipping Agent

Absolutely! If you decide to collaborate with a dropshipping agent, it’s best to find one in China to enjoy the benefits of product sourcing directly from Chinese manufacturers. This type of dropshipping agent usually offers a full dropshipping service, including product sourcing, quality inspection, branded dropshipping (white label, private label), warehousing and inventory storage, worldwide order fulfillment, and multiple shipping options, etc.

It’s beneficial if your dropshipping agent has warehouses in China and the USA. That would drastically shorten the shipping time to your US clients and improve customer satisfaction and loyalty!

So, all you need to start working with a dropshipping agent is to place a free product sourcing quote for your desired product. For ready-to-scale dropshippers, services can offer 90-day free bulk order warehousing. Placing a bulk order with your dropshipping company will allow them to negotiate a discounted price.

In conclusion, placing a bulk order can be an incredibly lucrative strategy for dropshippers and customers who are stable and ready to scale. So it’s a win-win situation for both parties. Welcome to contact us at any time!