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How to Tell the Difference Between Fake and Genuine Drop Ship Wholesalers

If you are looking to find a dropshipping wholesaler to supply your garden building products, one of the first things you need to do is to distinguish between genuine and fake wholesalers. Genuine wholesalers are those companies who only sell their products to retailers, fake wholesalers are those who sell their products to both retailers and at a slightly higher price to the general public.

The reason you need to avoid these kinds of wholesalers is that, because they are selling to the general public, they hold the dual position of being both your supplier and competitor at the same time. What this usually means is that their wholesale prices will be too high to allow you to compete with them in the market place. They will undercut you on price. In this way, they sell products to you in bulk and then take away your business by selling the product cheaper themselves to your customers.

What’s worse is that this is not always done transparently. They will often sell wholesale through one business and retail through another. Sometimes you can catch them out when the wholesaler and retailer have the same business addresses, registered addresses and company directors.

There are other ways to discriminate between genuine and fake dropshipping wholesalers. One of the primary tactics of fake wholesalers is to charge a joining fee or even ongoing fees to participate in their dropshiping service. This identifies them as fake because the genuine wholesaler makes its money from selling goods to retailers which they sell on. The fake wholesaler makes much of its wholesale income from dropshipping membership fees and the rest from selling directly to the public. Because it competes against its own customers, those customers are never going to be successful, so it is obvious that wholesale is not the core business activity.

In order to join a genuine wholesaler you will need to apply for a wholesale account and in doing so will need to prove you are running a business. You might need to disclose your business address, Unique Tax Reference, company registration details or proof of your online shop. Different wholesalers require different types of proof. This is to make sure that they do not sell to the public. A fake wholesaler on the other hand, won’t care too much about whether you’re a legitimate business, they will just want your money.

Some genuine dropship wholesalers will require companies to pay a ‘per-order fee’ to cover the increased cost of packaging and delivery for sending out individual items. Remember, they normally distribute in bulk, so have to cover the increased costs of one off deliveries somehow.

You will also find that even genuine wholesalers offer smaller margins for dropshipping than they do for bulk purchases. This is to cover the increased cost in distribution and because they become liable for ensuring that fulfilment to the final customer is done correctly. As a retailer using a dropshipper this might seem unfair, however, any reduction in margins is offset by passing warehousing, insurance and distribution costs to the wholesaler.

The final difference between real and fake dropshipping wholesalers is that genuine ones understand the important role they play in their customer’s fulfilment process. They will have knowledgeable, dedicated staff and expert fulfilment services there to ensure everything runs smoothly.

Are you looking for a genuine dropshipping wholesaler?

Timber World prides itself on being a first class drop ship wholesaler of log cabins, garden offices and bespoke garden buildings. As both manufacturer and wholesaler of our products, it is in our best interests to ensure we do everything we possibly can to help our customers sell our products. For this reason we do not sell our products to the general public.

As with all good wholesalers, we will verify that you are a business when you register to become one of our customers; to do this you will need to sign up for a Dropshipping Account. However, we do not charge a fee to become a customer and there no on-going fee to remain one. Nor do we charge a per-order-fee. Once your Dropshipping Account application is approved and you become a customer, you only pay for the products you buy and the cost of delivery (which you can pass on to your customer).

If you would like to know more about retailing our products click here.