How to Choose a Drop Shipper
A drop shipper is a company hired by a retail online business to ship goods directly to its customers. This eliminates the retailer from carrying inventory and saves the retailer time by not having to ship the goods directly to customers. When choosing a drop shipping company, a business must investigate several key issues such as costs, what company the drop shipper uses for shipments and the drop shipper's reputation.
Instructions
-
-
1
Perform market research for products. The first step in using a drop shipper is finding a supplier to purchase the goods from. The supplier and drop shipper should be relatively close in proximity for the best service. Look for a supplier where you can purchase all your goods from that sells the best products and at the highest profit margin.
-
2
Consult other similar businesses. Talk to other online businesses that are comparable to yours. Ask them about drop shippers and whether they use one. Ask them what qualities or features to look for in a drop shipper and what are some red flags.
-
-
3
Find out how much exactly the drop shipper charges for its services. Most drop shipping companies charge a monthly or annual fee. In addition to this, they typically charge the shipping fees from shipping goods, as well as a handling fee per package.
-
4
Ask drop shipping companies about their back order and return policies. Avoid hiring a drop shipping company that charges excessive restocking fees. It's also important to find out their procedures for damaged goods.
-
5
Look for drop shipping companies that provide delivery confirmation. Many drop shippers send the retailer a notification of the time and date a package was delivered. This typically occurs as soon as the package is delivered to the customer.
-
6
Investigate the history of the drop shipper. The Drop Shippers Directory is an online source used for locating drop shipping companies. Many business forums also offer advice regarding drop shippers. Look into how long the company has been in business and what customers who are using them say.
-
1
References
Resources
- Photo Credit blank white delivery cargo truck 2 image by alma_sacra from Fotolia.com