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How to Use a Dropshipper to Sell Products

Contributor
By Steve Smith
eHow Contributing Writer
(0 Ratings)

Using a dropship company to sell products is a good way to increase your selection and offer customers more variety without having to stock the inventory yourself. Since dropshippers warehouse all of the inventory themselves, and ship it directly to your customers for you, your business can appear to offer a large number of items and attract more customers. Customers will place the orders with you, but the dropship company will send them the merchandise.

Difficulty: Moderately Easy
Instructions

Things You'll Need:

  • Computer with internet connection, or phone
  1. Step 1

    Locate a dropshipper that sells the products you want to sell. Find one at wholesalecentral.com or search the Thomas directory at thomas.net, which is a list (with contact info) of hundreds of wholesalers, categorized by industry. Or contact a specific manufacturer who makes products you are interested in selling. Write a business letter requesting information on their dropshipping policies.

  2. Step 2

    Either on your company's website or through a direct-mail catalog, advertise the products you want to sell. Use the product information the dropshipper provides, and display a picture of the product (in most cases, you can download one from the dropshipper's website)

  3. Step 3

    Take orders from your customers for these products, using your own merchant account or credit-card processing system. You can also accept checks or money orders through the mail; you will simply have to wait for checks to clear before you place the orders.

  4. Step 4

    Place the orders for the products with the dropship company. Most offer online order placement, but you may also call in the order via phone.

  5. Step 5

    Fill out the dropship company's order form, giving them your payment information and the address of your customer. Put this data in the "Ship to" address field.

  6. Step 6

    Pay the dropship company for the item. The payment will come directly from your own credit-card account. This money is due immediately in most cases.

  7. Step 7

    Track the order. The dropship company will send the item directly to your customer. Be sure it arrives on time, and follow up with your customer if it does not.

  8. Step 8

    Take the profits from the sale and then track your order until delivery. Send a confirmation email to the customer when the order is shipped, then a follow-up email after the sale.

Tips & Warnings
  • Every dropship company is different: Some charge a flat fee or dropship charge, and others work this fee into the price of the item. Do a lot of research to find the company that will give you a competitive price and the best service.
  • Some dropshippers offer inferior or overstock merchandise, and some are less reputable. Take time to research them before you commit to an arrangement and start selling products. If something goes wrong, the customer will blame you, not the dropshipper.
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