Starting a simple dropshipping business is easy and anyone can do this from one’s home. However, the market is wide and if you want something bigger than just an online shop displaying goods, you can establish a wholesale dropshipping distribution business.
As an owner of the such type of an enterprise, you will work with much bigger quantities of products. Consequently, the revenues of dropshipping wholesalers are higher, too.
Register your business
If you want to run a lucrative business, your company must have legitimate status. The requirements for obtaining a license might differ, depending on the state you are going to register your business in. Special permits and licenses are provided by local governments and the registration procedure depends on your business structure. If you operate your business as a sole proprietorship, you can use your Social Security number. But a sole proprietorship isn’t always relevant when you want to run a wholesale dropshipping distribution center.
You need to register your business even if you run it from home by using your online website. So, the registration process and hosting your own domain name may take plenty of funds. In order to save some, you can build your website on WordPress and use our dropshipping plugins to automize inventory import, pricing, order tracking, etc.
Work on a business model
When you work in eCommerce, you need to answer 3 main questions. The first one is about the types of products you are going to sell. Then, you need to find partners to whom the products will be sold. Since you are considering running a wholesale dropshipping distribution business, you probably will either be selling products to smaller retailers or will provide act as a supplier for online stores by delivering your products to their clients on their behalf. Finally, you need to find sources to get goods in your warehouse. Get in touch with brands whose assortments meet your business needs.
Become a distributor
Becoming a wholesale distributor is more complicated than a dropshipping retailer. Except for finding suppliers and registering your business, you need to find a place to store products. You will purchase inventory in bulk so this place must be appropriate for storing goods. You may use your own space or rent a warehouse.