That’s a frequently asked questions by many ecommerce sellers. Dropshipping or wholesale which is better? Each seller has their own advantages and disadvantages on dropshipping and wholesale mode, we can see the difference between them then make the right choice.
Firstly, dropshipper no need to have stock inventory, but as a wholesaler you usually need to have products stock, it means there should be relatively big capital invested on the products stock, the more product skus and quantities the more money required;
Secondly, the dropshipping products usually have higher profit margin but less sales quantities for retail, wholesale are on the opposite, it usually have lower profits with bulky sales quantities;
Thirdly, dropshipping usually need focus on marketing, the more professional the higher sales and profits, while wholesale need focus on product cost and distribution network; The cheaper cost with higher quality the bigger distribution network and bigger sales and profits;
Fourthly, dropshipping is online retail mode which usually being seen as B2C or C2C, while wholesale is usually being seen as B2B mode, they mainly sell to dropshipper or companies which bigger order quantities than personal.
Thus it is hard to say dropshipping is more profitable than wholesale or wholesale has bigger profits than dropshipping, it is totally depending on your advantages whether suitable for dropshipping or wholesale. If you are good at social marketing you may have high profits easily, if you good at supplychain quality and cost control you may have higher profits on wholesale.