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    1. LivingstonShipping is offline

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      #1

      Dropshipping Guide - How To Start Dropshipping Successfully

      During the past decade, the resale business has undergone a world of change. Drop shipping, a long established order fulfillment method, has now become mainstream. Any reseller with a desire to succeed can today retail a growing variety of goods without holding stock.

      Drop shipping involves a process in which manufacturers or suppliers deliver the products directly to customers, without your business having to pre-purchase or stock the goods. The best part of the bargain is that as a dropship business owner, you don't have to do anything related to inventing, designing, buying or making the product.

      As a dropship business owner, your role is to procure the sales by promoting the drop shipper's products on your website or on eBay and similar online marketplaces. Once you receive an order, you simply transmit details of the order to your drop shipper, either by email, manually through the drop shipper's website, or by integrating on your website an automatic order notification email system that notifies the drop shipper about new orders that are ready to be fulfilled.

      Due to the simplicity of the concept however, many start ups fall for the assumption that drop shipping is easy. You may assume that you can just select a drop shipper and start selling immediately. Fortunately for you, it doesn't work that way, because if it was that easy it would be a very short lived opportunity that any of your competitors could easily replicate. Instead, drop shipping successfully requires that you choose your drop shipper carefully, attend to your customers promptly, and find ways of improving and upgrading your website to increase your turnover.

      Any negligence in providing necessary after-sales services, attending to complaints, selling through a professionally designed eCommerce site, can all affect the image of your website and company, and in some cases the reputation may be unrecoverable, leading to a loss of revenue, time investment, and future orders.

      In order to find an answer to how to dropship and how to start a dropshipping business, it is vital to select a reliable supplier. The wrong selection can have disastrous results. Follow the following steps before starting this type of business.

      1) Select Recommended Suppliers: The first step to starting a successful resale business using dropshipping is in the sourcing of the dropship suppliers. This step should be covered with great care.

      You may stumble upon review sites claiming that this or that drop shipper are great or the best; any such review found online has been written either by the drop shippers recommended in the review or by an affiliate earning a commission, therefore you already know you can avoid them.

      Selecting suppliers recommended by other people is a good option, however you must know and trust the person who has recommended the drop shipper to you; if you depend on a comment on a forum, especially dropshipping forums, you risk to fall in the hands of unscrupulous drop shippers, because they are often the ones controlling the discussions on online dropshipping forums.

      One alternative is to use free or paid-for lists of dropshipping companies, however be aware that not all lists or directories monitor their listings; many dropshippers directories include any dropship site that mentions the word dropshipping (most real drop shippers don't mention the word drop shipping, or they call it blind shipping), and few directories will invest in researching each drop shipper or in monitoring their performance.

      In addition, only some drop shippers directories offer accurate information that you can depend on, whereas others might be owned by drop shippers self proclaiming themselves as the best opportunity under the sun. Avoid those particular lists / recommendations.

      Recommended drop shippers lists include:

      1. eSources Dropshippers Directory: over 3,000 vetted dropshippers starting at just $25 (£15). USA dropshippers, Worldwide Dropshippers and UK Dropshippers Directory.

      2. WorldWideBrands Dropshippers Directory: over 1,000 vetted wholesale drop shippers ready to work with eCommerce entrepreneurs. Price is steep at $299, but offers a 60-day money back guarantee if you are unsatisifed.

      3. Hienote: almost as good as WorldWideBrands, but without the added education bonuses and research features.

      4. Wholesale Dropshipping Forum: ask on WholesaleForum.com about any drop shipper, and you will receive immediate assistance.

      2) Check the Contact Details: Once you have made a selection based on reliable recommendations, and after checking that the range of products that the business intends to dropship for you are sold at a price that will allow you to make a profit, check the contact details provided by the dropshipper. Pertinent contact information such as phone number, email address, and a mailing address should be available on the supplier’s website. Avoid any supplier with incorrect or with no contact information at all. Make sure the phone is answered and see how long it takes for the supplier to answer emails, which may come in handy later if you have a reason to contact them with a problem.

      3) Check Business Terms: Since there can be disputes with the supplier regarding faulty goods or undelivered items, you should review thoroughly and understand fully their business terms and conditions. Realize that your responsibilities as a reseller are different than the responsibilities that the dropshipper would have towards you. You will ultimately be responsible for selling the goods to end users, and any liability from the sale will fall on you. Therefore make sure the drop shipper accepts returns, that returns can be shipped to a mailing address local to you, and that the drop shipper is not offering you any hazardous or counterfeit, and therefore illegal goods.

      4) Unreasonable Subscription Fees: As a reseller, you may find that some drop shippers ask for a joining fee. The majority of dropship sites that ask for a drop shipping fee depend on those fees for profit, because the products they distribute are so overpriced that few of their drop shippes manage to sell them. Therefore, before you commit to any drop shipping fee, investigate the drop shipper's price list, and compare their prices to current online prices on Google Shopping, Amazon and eBay.

      You should also ask for a free trial, if the drop shipper is genuine they will have no problem in letting you test their service.

      A second option is to choose drop shippers who charge a fee but then refund it towards your first orders. Many unreliable drop shippers will argue that they charge a fee to keep end users away from buying from them, but only truly dependable drop shippers will offer you a refund of your drop shipping fees once you have started to sell their products.

      And finally, before you pay any drop shipping fee, check whether the fee is charged on an ongoing basis. Fine print should also be checked well for any between-the-lines clauses.

      5) Beware of Middlemen Disguised as Suppliers: Check whether the potential supplier holds enough stock of the products and they are not a middleman broker posing as a supplier. These middlemen place orders with the real supplier only when they receive orders from the reseller and, in this process, long delays can take place. These delays can result in customer dissatisfaction, which may lead to a loss for you in refunded payments and administrative costs.

      6) Modes of Payment: Find out how the supplier expects to receive payments because the most convenient mode would be the same by which the customer pays the reseller. This will save charges and time. It is also advisable to avoid having to pay by Wire Transfer or Telegraph Transfer because the risk is higher if there is no customer protection.

      7) Beware of Companies Selling Fake Goods: While choosing a supplier, avoid those sites that offer branded goods such as designer clothing and electrical goods at unbelievably low prices. Such low priced, so-called designer goods are bound to be fake unless the supplier is trustworthy and renowned and he has obtained the goods from a close-out, or if the goods are refurbished or Grade A returns. If the reseller sells fake goods, you can be liable for selling counterfeit goods.

      8) Look for Web Reviews: Having short-listed a few suppliers, it would be helpful to seek out reviews and comments regarding the companies on Internet forums from other dropship resellers. Although it might be difficult to find any good comments since the resellers who have found a good drop shipper would not like others to know about their profitable source, bad reviews can certainly help in making the right decision.

      9) Look for Artists and Craftsmen: Teaming up with artists and craftsmen for their creative products is a unique way to set up a drop shipping based business. These creative people usually lack marketing savvy. Visits to local craft fairs can provide unlimited opportunities to get stunning creative items at unbelievably low prices as compared to eBay prices. The dropship business need not buy these items, but an arrangement could be worked out for working on commission or for drop shipping single unit orders directly to your customers. They will likely be happy to accept your referrals and deliver the products to your buyers directly when a sale is made.

      Initially, the process of starting any business is rife with hiccups and hassle. The fear of loss can lead you to make bad decisions, for example by assuming that by paying a drop shipping fee all your problems will be resolved. Instead focus on identifying the direct source of drop ship items, possibly the manufacturer or creator. You will be surprised at how many wholesale distributors that specialize in a niche are willing to drop ship single unit orders for you. Your competitive advantage should be in referring sales, therefore train yourself on the art of marketing and obtaining sales. Don't fall victim to the first apparent opportunity, there are many fictitious drop shipping sites out there who will be happy to take your money in the form of a drop shipping fee in exchange for persuading you through a well thought out sales page. Real drop shippers rarely have fancy sites or fancy marketing. They are looking for agents who are skillful in gathering sales, and their expertise is in stock management and order fulfillment, not in marketing an opportunity.
      Over 150,000 Verified Sources + Deals 95% Off MSRP + Free Website!

    2. Thank you for this post:

      Joycebetter (08 Nov 2011), baby_griffin (25 Nov 2011), maxipr (13 Jun 2012), talitha (28 Jul 2012), joejoe380 (27 Sep 2012), jannah (21 Jul 2013), Irene222 (21 Jul 2013), Shonteezy (16 Mar 2014), AR99 (14 Sep 2017), dubuilderr (15 May 2018)

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