Wholesale vs. Dropshipping: Finding the Right Fit for You

You’ve decided to get in on the booming e-commerce industry. It’s a smart move for those with a bent toward entrepreneurship. According to Statista, the global retail e-commerce market will be valued at over $8 trillion USD by 2026.

Setting up your own online store allows you to get started with a retail business without the hefty upfront costs of opening a brick-and-mortar store. But that doesn’t mean all the decisions for your e-commerce business are cut and dry.

One big decision you need to make for your online store is how to manage your inventory: wholesale vs. dropshipping. In this article, we’ll lay out the differences between wholesale and dropshipping so that you can find the right fit for you.

 

Managing Inventory for Your Online Store:  Dropshipping or Wholesale

Your decision on whether to go wholesale or dropshipping boils down to how you want to manage inventory.

Wholesale means you purchase and stock inventory. When customer orders come in, you take care of packing and shipping.

With dropshipping, your supplier handles inventory. When customer orders come in, you place orders with your supplier, who then packs and ships the order directly to the customer.

 

Pros and Cons of Wholesale and Dropshipping

Below, we’ve outlined the pros and cons and dropshipping and wholesale inventory management.

 

Wholesale vs Dropshipping: Questions to Help You Decide

As you can see, going with wholesale or dropshipping for your e-commerce business has various pros and cons. Ultimately, though, your particular situation will make dropshipping or wholesale the right fit for you. Below, we’ve listed a few questions you can ask yourself to help you decide.

Do I have the upfront money to invest in inventory? Going with wholesale means you have to invest significantly more—and with more risk—than going with dropshipping.

Do I have time to invest in inventory management? Buying in bulk means you have the potential to make more money with your e-commerce business. But you also have to spend more time packing and shipping orders. Be realistic about how much time you have to devote to your online store.

Am I prepared for my online store to take longer to become profitable? By using dropshipping to manage your online store’s inventory, you’ll need to sell considerably more product to make a significant profit. Consider how long you’re willing to stick with your e-commerce business before you start achieving your income goals.

 

TVCMALL Makes Wholesale and Dropshipping Better

TVCMALL can provide the extra services that make dropshipping and wholesale work better for you. We offer customization services to help you build your brand. We also provide API integration, so that you can quickly launch products on third-party sites.  With our support process, you can get one-on-one help, along with professional market analysis of our products.

Whether you go with wholesale or dropshipping for your online store, TVCMALL has the tools and support to make your business THRIVE.