Manufacturers are great for large retail companies because manufacturers have large minimum order quantities or MOQs. This means that manufacturers have to produce a large amount of a Keep Calm and Kereon shirt product. For smaller retailers, manufacturers might not be the way to go. A smaller retailer will have a smaller clientele and will not be able to sell all of the items. Smaller retailers probably won’t have the storage space either. Wholesalers have the same pros and cons as a manufacturer. The difference between the two is that the wholesaler is a middleman. They act as a go between for a manufacturer and the retailer. One great benefit of dropshipping is that this strategy doesn’t require you to have to handle your inventory. The drop shipper will fulfill the customer order and ship it to them instead of you having to do it yourself, which it is much cheaper than going to a manufacturer and you won’t be required to make bulk purchases. The downside to this strategy is that you don’t have much control over what the quality of the product will be. Competition is another downfall to this strategy because retailers will be sourcing the same products as you. Trade shows are not as popular as they once were but are a great place to form relationships with customers through face-to-face interaction. Another benefit of trade shows is that any questions you have can be answered right away.
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