Many retailers on the web or on the high street have found that the drop shipping method to be quite lucrative to the development of their business. Drop shipping diminishes the need for buying large stock quantities, sourcing costly warehousing and sorting out packaging and shipping or posting. If you find good manufacturers, importers and wholesalers that accommodate drop ship facilities, the benefits to you and your enterprise would be enormous. These would include low overhead and a higher profit margin. Sounds appealing, right?
Drop shipping allows for you to focus your energy and resources on building or expanding your customer base. It is ultimately time – saving. After you have sold your products, your time would be spent on trying to sell another, instead of trying to ship or post to the buyer. This can be a simple and efficient process, if you are lucky to find a genuine drop ship supplier.
Beware of unreliable companies or scam artists. It will have a negative effect on your profit levels, and your reputation, consequently damaging your entire operation. It is possible to find lists of wholesalers, drop ship suppliers on directory websites such as Salehoo. They list over 8,000 suppliers, who they even verify the services of themselves.
When trying to locate a good supplier to contract with, you should keep in mind some very important points. Scams should not be taken lightly.
o In most cases you should never be asked to purchase a membership. You are already marketing their goods, in turn making a profit for yourself and the supplier / producer, when you sell them. They also profit from your effort put into finding actual buyers, because they can save on advertising and hiring extra staff.
o Some companies who claim to be drop shippers are really turnkey businesses. You could be charged ridiculous initiation and setup costs, monthly fees, and other impractical hidden expenses. They are the ones who really make a profit at the end of the day.
o There are also lists of bogus drop shippers. These can be sold to novice and unwitting vendors. They are usually middlemen acting as drop shippers. Because they have increased their prices to make a profit themselves, you end up paying much more than you would have if you had contracted with the source. Websites like Salehoo allow for the users to rate and review the suppliers, so you can learn from the experiences from others just like you.
o It is essential to watch out for out of date lists or those with false information. Make sure your source for the list adhere to strict rules and meet high standards of business practices. If you pay to access a list of reputable drop shippers, this is also a business arrangement. It should be treated as such.
o It is equally important to ensure that your contact does not take your customers. Your buyers belong to you. A genuine company will agree to this strict rule and will therefore honour an agreement like this.
Remember these are important things to discuss with your potential contact: their policies, there fees, if relevant, their usual delivery time and locations, return and refund policies they may have and most importantly back order procedures in case of low product availability.
Whether you are a small business or large established enterprise, it is vital to be wary of your contacts and business relationships. Your reputation, finance and way of life are on the line.