A drop shipper is a wholesale supplier that stocks inventory and products sold by retailers. The hardest part of becoming a drop shipping supplier is finding the right manufacturer. The manufacturer must charge the drop shipper less than what they drop shipper can charge their customers. Typically, drop shippers have their suppliers in foreign countries (such as China or Taiwan), where the cost of manufacturing is significantly cheaper. This saves the drop shipper from having to import their supplies and house them until they get sold.
Select what goods to sell. Sometimes the business will alter their entire product line if they find a good supplier for different products. As a result, the process of deciding what goods to sell it dependent on the suppliers. Many drop shippers prefer to find a supplier first before committing to sell a certain product.
Locate a supplier. Finding good, reputable supplier who will agree to drop shipping is not always easy. The supplier must be quick to respond to emails, phone calls and deliver a quality product. Always sample the product line before beginning to drop ship. Bulk discounts for the larger volume of orders are usually negotiated after some consistent sales have built the relationship.
Check the Internet. Many drop ship supplier advertise on trade sites on the Internet, and often will sell their product directly to the public through their own Web pages. The other alternative for finding a supplier is to go to China or another Asian country and visit manufacturers. This can be more time-consuming and costly; however, it can help solidify relationships with suppliers and allow the drop shipper to see exactly who they are working with and evaluate the quality of the goods.
Set up the rest of the business. Most drop ship suppliers are Internet-based. This means you will need to set up a website. Photos and detailed product descriptions will need to be uploaded to the site. The site should look professional and outline shipping options and policies. Always check what the competition is charging when setting prices. Charging slightly less than the competition may create smaller margins but will likely increase sales volume. Market the website though search engines (search engine optimization), paid advertising and social networks.