Question

If you sell products on the internet, one of the decisions that you will have to make is whether to use wholesaling or dropshipping. With wholesaling you carry the products and ship them when sold. With dropshipping a third-party carries the products and ships them to the customer for you after the customer buys the product.

If you were going to open your own business, which method would you use? Be sure to explain your answers.

Answer 1

In my business, I do not wish to keep any product that I have sold off, in my stock. When I sell a product, I would involve a third-party in it since I shall be purchasing the same from that party and also ensure that such a party in turn ships the product to the said customer. So basically, I do not want to involve myself in the process of handling the shipment or the product altogether but would only involve in generating the business for selling those products to the required customers. Therefore, in such a scenario, the Dropshipping could be used by me because it shall fulfill my business requirements.