Sourcing products for an online store using a wholesale aggregator has become a recent phenomenon on the internet. The growth has been fueled with the popularity of eBay and the increase in the amount of online stores now on the internet. Many of these store owners prefer the simplicity of sourcing products from one entity as opposed to using a number of drop shippers or wholesalers. There are now several well known aggregators such as Doba that provide an end to end service that includes ordering, payment and delivery of all products.
What Is An Aggregator
An aggregator sources products directly from wholesalers and drop shippers. It does not stock or manufacture products. An Aggregator operates on the basis of leveraging their significant buying power through their member base that can potentially lead to lower wholesale prices for the products that are drop shipped to the end consumer. This is similar to how smaller retail chains create buying groups with similar size competitors to increase buying power that enables them to remain competitive with the larger retail chains. It is alleged an aggregator makes money through the membership fees of its members as opposed to profiting from each individual transaction. Some may argue that certain aggregators do take a profit from each transaction and therefore profit margins are potentially reduced.
Product Sourcing Options
Doba is an alternative for those who lack the confidence of dealing directly with drop shippers and prefer to source products from only one entity. There are many other product sourcing options including finding drop shippers using a wholesale directory such as Salehoo or Worldwide Brands. Along with Doba these directories offer additional benefits such as product research, ebay auction tools and member forums.
Doba deals only with pre-verified suppliers so it does provide some comfort knowing that you are unlikely to be scammed by a drop shipper. However the downside of dealing with only one entity is your product sourcing options are somewhat limited. Overall aggregators such as Doba should only form a part of your overall product sourcing strategy.
To read a comprehensive Doba Review or to read a Salehoo Review you can visit my web site at ehomebusinessonline.com. David Glen is an eBay/Internet marketer.
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