What is the best business model to use? Retail, Wholesale, Drop Shipping, or Consignment?

If there were only one better choice between the business models listed, why would any other form of business exist?

Each of the choices have positives and negatives attached to their business models.

If I had to make a choice I would pick either wholesale or retail as the types of business I would pursue. Both require a major investment to develop the business and this is a positive thing. It makes the entry into this market model more difficult so competition is more limited. Once you have established your business and begun building a customer base, as long as your service,quality, and selection of product remains top of the line, your business should grow and prosper. Sure, certain product categories may come and go, but loyal customers tend to remain very loyal. Just keep building and adding to the product lines you offer. Use unique sales copy, and photos if you are an online seller and develop a very professional presentation and image.

Drop shipping is a good business model in some specific cases,and is very useful for product test marketing, selling a low competition Niche products, or offering items for sale that are big, bulky, hard to ship, or expensive. Because there is low investment involved to get started in the drop shipping business you will tend to face a lot of competition unless you have an exclusive agreement with a supplier of unique products. n this category you will see many companies offering a tutorial on how to drop ship, companies offering subscription services that will allow you to purchase products from them, or even companies selling lists of potential drop ship suppliers.

The consignment business can be very profitable if you have access to the right consignment merchandise. It consists of a lot of closeouts, refurbished merchandise, returns, and good individuals are offering for resale. Often, when the existing inventory is finished, there is no replacement available. So while it is an opportunity to offer low-cost, high-profit merchandise, it may be difficult to create a sustainable business since the product mix may be constantly changing.


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