A wholesaler is a type of business that acts as a middleman between manufacturers and retailers. They purchase goods in bulk from manufacturers or other wholesalers, and then resell them to retailers at a higher price. Wholesalers may also provide additional services such as warehousing, packaging and logistics.
Drop-shipping, also known as direct-to-consumer shipping, is a form of order fulfillment in which the wholesaler or manufacturer ships the product directly to the customer, rather than to the retailer first. This eliminates the need for the retailer to hold and manage inventory, allowing them to offer a wider range of products to their customers without having to invest in the stock upfront.
The wholesaler or drop shipper handles all the logistics and shipping tasks, which makes it easier for the retailer to manage their business. This is considered a good option for e-commerce shipping because it allows e-commerce retailers to focus on marketing and selling their products, rather than on the logistics of shipping and inventory management.