What are middlemen?
Someone acting the role of a drop shipper. They are working as a liason between you and a drop shipper. This is not a desired situation as they do not bring any value to your business. Often they are bumping up the wholesale price to you and taking it as profit. Check out Dr. Beiermann’s article entitled “How you can avoid the three M’s of drop shipping.
The Manufacturer sells a product to their Wholesaler at $3.50. The Wholesaler sells it to a Middleman for $5.00. The Middleman tells YOU he IS the Wholesaler, and charges YOU $7.50. YOU have to sell it for $10.00 to make a profit, and you find you cant compete with other Online Sellers who DO NOT work through a Middleman. Your Product Sourcing will be most effective when you work directly with REAL Wholesale Suppliers, NOT Middlemen! That REAL Wholesaler should have physical offices with several people on staff. You can contact their local Chamber of Commerce or the Better Business Bureau to Qualify ANY wholesaler you consider using. You should also use the Search Engines to search on their BUSINESS NAME, to see if other people have posted complaints about them online. Finding Real Wholesale Suppliers When you’re looking for information, the first thing you do is go to the Search Engines, right? Well, that isn’t always the best thing to do, especially when you’re looking for real Whole
