How to Choose a Drop Shipping Company
Drop shipping is when you advertise products and take orders for those products. When you make a sale to a customer, you receive your money, then send that money and order form to a drop shipping company. The drop shipping company ships the order directly to the customer. It is important to do your research before choosing a drop shipping company so you can make the most profit.
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Instructions
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Check the prices for which drop shipping companies are selling their items. Many drop shippers will claim to be wholesalers, but they sell their items at a much higher price than wholesale. Use a search engine to find the resale price of an item you are interested in selling and then compare it to the drop shipping company. The drop shipping company's price should be significantly lower.
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Test shipping time with the drop shipping companies. Sign up for an account with the drop shipping companies you are still interested in, and request a sample of one of the items you are interested in selling. The time it takes for you to receive the item is how long it will take for your customers to receive their orders.
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Check the item for quality. Once you have received your sample orders from the drop shipping companies, check to make sure that the product is what was promised and is of high quality.
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Find out what the back ordering details are of the drop shipping companies. Sometimes companies will run out of items and have to put them on back order. Find out how this could affect your sales and read their refund policies.
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Read the agreement with the drop shipping companies carefully, paying attention to the fine print on the agreement. Make sure you know the "ins and outs" of how they operate and how it will affect your business.
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Tips & Warnings
Never do business with a drop shipping company that won't provide you with the information you are requesting while researching them.
Never pay a membership or license fee to a drop shipper.
