By Damien Clarke

Ever wondered how you could make extra money like the powersellers on eBay? These sellers have discovered the secret of using dropshippers. Dropshippers are businesses that provide a set of very specific advantages. Here is a list of the top 5 advantages of running a wholesale dropship business.

No inventory to handle

There is no need to stock and maintain inventory. This is handled by companies known as dropship wholesalers. The wholesaler handles, stocks and maintains the inventory. All you need to do is place your orders and ship direct to your buyer. That makes life a whole lot easier for you as the dropship agent.

As a result, you do not need to rent storage space or a warehouse for this purpose. The dropshippers do all this. That alone is a major cost saver for you.

Market research

Dropship wholesalers supply their clients, or agents, with certain tools that allow you to know what items are selling well. Doing this on your own can take hours and hour of "homework" time. For auction type sellers, there are direct interfaces so you are able to list items quickly at the touch of a button.

You will have access to current inventory levels and always know when an item is available for sale. This is helpful for store owners on auction sites like eBay or Craigslist. Your store inventory levels will reflect changes automatically, so the maintenance is minimal. The long and short is that hot sellers are a mouse click away reducing your research time significantly.

Shipping is done for you

Wholesale dropshippers take care of the physical shipping for you. You place your order and the dropshippers pack it and ship it. You will know the shipping costs up front, so there are no surprises after the sale. You don't need to worry about materials, boxes or any of that, nor do you have to run to the post office or local shipping point.

Profit margin

Since wholesale dropshippers sell to you at wholesale prices, you can sell at or even below the MSRP (manufacturer's suggested retail price). That means you can customize your own profit margin and select the items with the highest sales as well as the highest margin of profit. Sometimes this can be as much as 25%.

Access to thousands of items

Dropshippers operate sites with literally thousands of items available for you to sell. Every area or category can be represented. From clothing to jewelry to electronics and even television sets. Whatever you want to sell is available with dropship wholesalers. One site that I personally use has access to over 500,000 different items across several hundred categories or departments.

This selection allows you to diversify your products and expand your audience. Added to the wholesale dropshippers research tools, you are virtually unstoppable. The wholesale prices will also allow the seller to combine the freight with the sell price and offer free shipping, which attracts buyers.