How to Use Drop-Shippers for an Online Business
Drop-shippers are wholesalers or manufacturers who will ship products out to your customers. Unlike some suppliers, drop-shippers also allow you to order single units of products at wholesale prices. The first step in working with a potential drop-shipper is deciding what products you will sell online. Next, find wholesalers or manufacturers who sell these products and also drop-ship them. Always check with the Better Business Bureau to make sure you are dealing with a legitimate company.
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Things You'll Need
- Wholesale or manufacturer supplier
- Product pictures
- Website
- Wholesale price list
- Wholesale order forms
- Shipping labels
- Shipping boxes
Instructions
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Search for wholesalers and manufacturers through trade magazines in your industry. Scan the classified and display ads of pet magazines, for example, if you are selling pet supplies. Visit the National Association of Wholesaler-Distributors site at Naw.org for a list of potential wholesalers. Search the "Thomas Register" site at Thomasnet.com for a list of potential manufacturer suppliers. Scan the listings of the "Dropship Service Directory" at Mydssd.com for drop-shipping wholesalers.
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Call several wholesalers and manufacturers and ask whether they offer drop-shipping services. Contact the drop-shippers to see what products they offer. Select the drop-shipper that offers you quickest shipments. Negotiate the lowest price possible.
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Create a website for your online business. Ask your drop-shipper to supply pictures of the products you are selling. Post these pictures on your website. Write descriptions for the products and then list the prices under the pictures.
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Decide which day(s) of the week you will order products from your drop-shipper. Place your orders each Friday, for example, so you can spend most of the day processing your customers' orders. Fill out your wholesale order form online, if you prefer, so you can get the order processed through your drop-shipper more quickly. Provide the drop-shipper with the names and addresses of your customers so it can print a shipping label for them. Pay the drop-shipper electronically with a credit card.
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Select a delivery time to receive any shipments you have asked the drop-shipper to send to you rather than to your customers. Most of your orders will likely be shipped directly to your customers --- that's the benefit of using a drop-shipper. However, you might have some products delivered to you. Choose a delivery time and day when you will be available to receive and sign for your products.
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Tips & Warnings
Check all the products that your drop-shippers send you. Ask for replacement products if any of the merchandise is damaged. You do not want to send damaged merchandise to any customers or those customers will likely not order from you again. Establish a fair return policy with your customers. For example, allow customers to return merchandise for a full refund within 30 days.
