A Guide to Successful Dropshipping
Drop ship distributors are essential to running a successful online business. The basic function of a drop ship distributor is to send merchandise from your business directly to the customer. Drop shipping companies basically complete sales for you by ensuring your merchandise reaches its buyers on time.
One of the biggest advantages of using a drop ship distributor is not having to store any inventory or worry about inventory costs. By not having to store any of your own inventories you won't have to pick up any merchandise, pack it and ship the products out to the customers.
Another advantage of using a drop ship distributor is the distributor's tendency to be transparent. Even though the distributor is sending merchandise directly to your customer, the package will look like it came from your business. If you rely on a regular drop ship distributor you should be able to send them your own forms and labels.
Unfortunately, there are a few disadvantages to using a drop ship distributor. A lower profit margin is one of them. Generally, a wholesale manufacturer will sell you merchandise for close to 30% to 40% off of the suggested retail price. When you add a drop distributor into the mix, you are likely to lose another 10% of your profit. Lowered margins can make it difficult to stay competitive with your prices while still making a profit for yourself.
Using a drop ship distributor has the potential to harm the quality of your customer service. Oftentimes a business may be unable to have a fluid line of communication with its manufacturer. This can lead to delays in shipping or angry customers. It can be hard to distinguish your online business from another, which makes customer support all the more important.
Finding a reliable drop ship distributor often occurs by searching online. One way to do this is through eBay. It is likely that you are already selling your merchandise on eBay, so consider checking out your market and seeing what your competition looks like. If you are able to make a small purchase similar to the kind of products you sell, you should be able to trace the manufacturer once the package arrives.
Another method for finding a drop ship distributor is short listing or visiting our drop shipping companies page. Short listing is incredibly simple and might be cheaper than using eBay. Try doing a Google search for the product you are selling with the words dropshipping, dropshipper, distributor or wholesale after it. If you decide to visit our drop shipping companies page instead, you should be able to find several recommended drop shipping distributors.