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Many entrepreneurs have been successful in the dropshipping industry. For those unfamiliar, dropshipping is a business term used for a situation where a seller sets a retail price for an item, collects payment, sends the wholesale cost to a dropshipper, and the item ships directly from their store. In most cases, the seller doesn’t even handle the merchandise because every aspect of shipping is handled by the dropshipper. Despite how successful the industry has become, there are concerns that arise from this method of selling. To familiarize you with those concerns and other useful information, a list of 10 tips has been compiled. Anyone in the dropshipping industry, or considering doing so, should take their time and gather as much information as possible.
Tip 1: Check the dropshipper’s reputation with the Better Business Bureau in your area. How long have they been in business? Has anyone ever filed a consumer complaint against the company? If so, has the complaint been resolved? This information can be found at http://www.BBB.org.
Tip 2: Ask the dropshipper how quickly they will be able to complete and ship the order. Be sure to ask whether or not there will be a tracking number available. The tracking number will be very important because if an item doesn’t arrive, you’ll need some means of tracking the purchase and making sure it shipped. If a customer doesn’t receive a product, they will look to you for answers.
Tip 3: If you drop ship, this means the item you are selling is not in your possession. It is very important that your customers know this. Sellers must state that the item will be shipped directly from their supplier.
Tip 4: An important factor to consider is the delivery time. It’s important for buyers to know that because the item ships directly from your carrier, they may have to allow more time for delivery. Be sure to ask your dropshipper how long delivery takes so you can pass this information on to your buyers.
Tip 5: If a problem should arise during the course of shipping, or if a shipment is delayed, immediately address the issue with your buyer. It is important to have good communication and let your customers know that you are always there to answer their questions.
Tip 6 – Beware of dropshippers who require you to pay a fee to access their product line. A legitimate dropshipper should not charge to set up an account.
Tip 7: When ordering from a dropshipping company, there should be no minimum order. It’s normal to get discounts on larger quantities, but the dropshipper should be able to accommodate any order size from 1 to 100.
Tip 8: Consider doing business with more than one dropshipping company. It’s always a good idea to look for a wider variety of better deals. Don’t put all your eggs in one basket, so to speak.
Tip 9 – When you start doing business with a new dropshipping company, order some test products for yourself. After all, you are the one who will be selling the products, and you want to make sure that the company offers quality products, reliability, and accuracy in order fulfillment.
Tip 10: The whole idea behind dropshipping is wholesale. You are buying a product at such a low price that you should be able to sell it for a profit. The dropshipper is the wholesaler and you become the retailer. It’s easy to forget that some things are too good to be true. Just like everything else, scams exist, so be careful. The bottom line is that regardless of how wonderful the deals may seem, start slow and build up larger orders as you become more comfortable with the process.