Ecommerce Information

Working With Drop Shippers


Drop Shippers, the manufacturers or distributors who are willing to ship their products to your customers, bring a powerful benefit to ecommerce. Online businesses that engage in the wholesale-retail trade can cut down on all the hassles of shipping their products by simply establishing business relationships with drop shippers, and using them as part of their business model. This article will cover the aspects of selecting a reliable drop shipper, the process of setting up with drop shippers, and also some of the common problems that may arise from working with drop shippers.

Selecting a reliable drop shipper is a very crucial element in your drop shipping business. If the drop shipper you work with is honest and reputable, you can consider yourself to have won half the battle in the order fulfillment process. Although this may not be true in some circumstances, the direct manufacturers and the upper level distributors are usually more reliable than the smaller distributors. Manufacturers usually produce their products in large quantities, and require higher capital to finance their companies. More often than not, these businesses are reliable companies, because only businesses with a strong track record have the ability to secure such high capital to finance their manufacturing process.

Also, first and second tier distributors are usually reputable as they are bigger and more established, since their distribution spans a wider region. This is in contrast with lower tier distributors or middlemen, who make their profit simply by marking up the prices. Some low-tier distributors may be fly-by-night organizations or businesses that may shut down easily due to their small size. Hence, whenever possible, you should look for the direct manufacturers or distributors of the products and ask if they offer drop shipping services, due to their reliability. Direct manufacturers or distributors should also be your first choice because their prices have not been marked-up by any middlemen, and thus the higher your profits can go.

(This is not to say that smaller distributors are unreliable, there are also numerous honest distributors out there with established track records.)

Simply phrased, the drop shipping process is as such: You set up a website catalogue selling the goods that you want to sell. After a customer has placed an order on your website, you can call or email your drop shipper to deliver the specific quantity of products to your customer. Your drop shipper will then ship the products to the mailing address as specified on the order form.

When selecting the products you want to sell, you have to also consider the shipping costs involved. If your drop shipper and your customer base are located in different countries, you should definitely sell products which cost in the price range of hundreds or thousands of dollars, so that the higher international shipping fee would account for a smaller proportion of the retail price of the product. If your drop shipper and your customer base are located in the same country, it would then be feasible to sell products that are cheaper as the shipping costs are much lower.

So how should you go about looking for your product suppliers? The first approach you can take is through the search engines. You can start off by searching for 'Manufacturers directory', 'Wholesalers Directory', or 'Drop Shippers Directory', and look through the websites containing the lists of such manufacturers. Alternatively, you can type your product keyword together with the word 'wholesale'. For example, if you want to sell wooden carvings, you may want to try the term 'wholesale wooden carvings' and take note of the websites offering wooden carvings at a wholesale price. After which, you can email or call the manufacturer and check if they offer drop shipping arrangements. Or, if they offer the function to sign up for their drop shipping service on their website, you can immediately sign up for it, but only after verifying that they have a record of excellent and ethical service. (You can do this the easy way by browsing their website. Most of them will display the awards or commendations they achieved for excellence and reliability.) A good example of a wholesaler that offers drop shipping registration on their website is http://www.artinternationalwholesale.com. The drop shipping service can be found on the left navigation bar under 'Wholesalers'.

Remember to target manufacturers as your first choice. You can find a directory of manufacturers and distributors at http://www.thomasregister.com. If you cannot find any manufacturer offering drop shipping services, you should then target the direct distributors one level below the manufacturers. Their prices would have only been marked-up once, and hence the lower your cost. You can locate these distributors by getting the manufacturer to recommend some of the more reliable ones. If none of these first-tier distributors offer drop shipping, you then move on to the second-tier, and so on. However, it is not advisable to go on to the lower tiers, as your profits will decrease.

Although manufacturers or direct distributors are large companies, some of them may not have an established website. You can still contact them by calling them or sending them a mail. I would recommend that you call them personally so that there is more room for negotiations, and also a warmer 'touch' to the business relationship.

Before calling your drop shipper directly, you will need to establish your business as a legal entity before starting any business trading. Registering your business with the government involves getting your Tax ID number, and also your official business name. You can contact your state's administration and find out how to register your business. U.S. citizens can get a lot of resources and information on registering a business at http://www.sba.gov.

After your business registration is done, you can start contacting your drop shipper and negotiating with them. There are several important issues that you have to discuss with them:

1) Shipping. Most of the companies outsource the delivery of their products to a delivery service like FedEx or UPS. Once you email a customer order to your drop shipper, you will need to be able to keep track of the status of the delivery. If any customer were to query you on when the goods are to arrive, you will then be able to account for them fully. Established delivery services like FedEx offer online real-time tracking services. With the tracking numbers issued by the services, you can log on to the internet to track the delivery status of the goods. Alternatively, you can choose to include the tracking number in the email autoresponders sent to your customers, so that they can log on to the FedEx or UPS website to track the shipment.

You would also need to find out what is the delivery service that your drop shipper uses, and calculate the shipping costs. Shipping costs within a country should be significantly lower than international shipping, thus it is advisable to select a drop shipper based in the country where most of your customers are. This not only cuts down a lot on shipping costs, it will also reduce the hassles of international shipping like customs security and slow delivery time. Additionally, lower shipping costs would encourage more purchases from your customers, as compared to cases of international shipping where the high shipping costs can sometimes account for up to half the price of the goods, deterring them from making purchases.

Usually, the logistics department of the drop shipper is willing to label their products with your company name and logo, so that it will appear as if you were the one who shipped the products to your customers.

2) The wholesale price of their products. Although this would not vary much among manufacturers of the same products, some manufacturers do offer a slightly lower wholesale price than other suppliers for the same product quality. It would pay off much in the long run if you scout around for wholesalers with lower price, as you would make a bigger profit on each sale. You can also negotiate among several wholesalers first because some wholesalers allow greater room for negotiation than others. If your online businesses can have a guarantee of selling a large quantity of products, you should be able to get a lower price for them, similar to the discount given for bulk purchases.

3) Credit and Billing. You would have to make clear with your drop shipper how you are going to pay them, whether it is by credit cards or by checks. Will the payment be made immediately after each purchase of goods, or will it be paid after a certain minimum quantity of goods is purchased, or will it be paid at the end of each month? These details may appear trivial, but it is important to clarify all this at the start to prevent disputes later.

4) Product Return Requests. Because your customers expect their products to be of a pretty high standard, your drop shipper will need to guarantee you a certain standard of product quality, and be willing to replace any defective products. Be wary of drop shippers that do not offer these guarantees! If it turns out that many of their products are defective, then your reputation is at stake, and you would end up with many useless defective products. Clarify the process of returning defective products. You may want your customers to return the products directly to your drop shipper, instead of sending the products first to you, then from you to the drop shipper.

An agreement with your drop shipper on their refund policy should be finalized. If they do, you need to determine whether the funds are to be transferred first to you or directly to the drop shipper.

In conclusion, the process of establishing a business relationship with a drop shipper can be quite complicated. However, if many of the details are clarified right before any transactions are made, your online business should be able to handle all the hassles smoothly.

*You are welcome to reprint this article as long as you include the Author's resource box with the article.

About the Author: Ray Yee is the founder and president of Dropshipperscentral, a website which provides a wealth of informative articles, tips and resources on everything you'll ever need to know about setting up a Drop Ship Business and marketing it. Click here for the Wholesale Drop Ship Directory from http://www.dropshipperscentral.com


MORE RESOURCES:
Internet and Businesses Online:Ecommerce Articles from EzineArticles.com
04/25/2018 08:55 AM
Use These CMS To Build An Ecommerce Website
Ecommerce is a booming sector and in an order to bloom yourself along with it, you need to design a beautiful ecommerce website on an appropriate platform or CMS. CMS stands for Content Management System that helps to build a website that works well and offer unbelievable and pleasant working experience to the users, which increase your chances of conversion.
04/25/2018 08:48 AM
10 Things Customer Retention Experts Do To Keep Their Patrons Coming Back
With start-ups springing up by the minute and online giants constantly working on new gimmicks, it's important that you don't get left behind in eCommerce. What better way to stay in the lead than to keep your customers loyal to your business? How to achieve that isn't as difficult as it sounds, so long as you acknowledge that the first sale doesn't make a business successful, but the succeeding ones it gets from repeat customers.
04/23/2018 09:29 AM
Online Sales Via Mobile Jump 19%
Society's addiction to mobile phones is fueled all the more by the dominance of eCommerce. We can clearly see how these devices are increasingly turning into the main shopping tool of online shoppers, but news of eCommerce revenue growing by means of these devices still never fails to amaze us. This article explains how online sales spiked via smartphones.
04/23/2018 09:28 AM
How Discounts Damage Profits And Brands
A sale used to be a much-anticipated event in both online and bricks-and-mortar shops, which everyone would prepare for in advance by listing what they intend to buy. Heavy discounts were normally offered by retailers in the first and last quarters of the year, or from Black Friday until early January. New research revealed, however, that the desire to stay ahead of the competition, coupled with the need to meet consumers' expectation of regular sales, drove many businesses to change the norm.
04/19/2018 08:42 AM
How to Channel Amazon's Success Towards Your Own Listing
Amazon's retail market share is nearing the top spot as recent reports have been suggesting. While interesting developments keep occurring with Amazon being the epicentre, a lot of online merchants may wonder, what do these events and landmarks have to do with running a product list on Amazon and earning revenue? What retailers need to understand is that a lot of Amazon's retail success is significantly contributed to by sellers whose products are making a difference and attracting visitors.
04/18/2018 03:06 PM
A Step by Step Guide to Start Selling on Amazon India, Exploring the Online Opportunities
E-commerce is a powerful asset that can bring fortune to your business if used efficiently. Amazon is one of the largest e-commerce giant, selling on this platform is comparatively uncomplicated with a multitude of other additional benefits. One can easily give wings to their online business by listing their products on Amazon.in
04/18/2018 10:44 AM
How to Maintain an eCommerce Website
Setting up an eCommerce website isn't the end of the work that needs to go into it. To ensure that it remains optimised and performs highly, effective maintenance is essential. A website should be considered an ongoing project, especially in the highly competitive and fast paced eCommerce industry.
04/18/2018 10:44 AM
7 Steps to Building a Successful eCommerce Business
With the eCommerce industry booming across Europe, and Cyber Monday confirmed as the largest online sales day on record, there is now more incentive than ever for entrepreneurs and bricks and mortar retailers to turn their attention to online retail. However, much with building any business, certain key considerations and strategies must be observed when launching a successful eCommerce business. Read on to discover the seven key steps to developing a thriving online store...
04/18/2018 10:42 AM
The Importance of Understanding Your Customer's Journey on Your eCommerce Website
As an eCommerce retailer, do you know what your customers are doing when they hit your site? Do you know where your site is losing visitors or understand at which point of the sales funnel prospects are arriving at your landing pages? If you answered no to any of these questions, it's very likely that you need to take some time to understand your customer's journey through your eCommerce site.
04/18/2018 10:41 AM
How to Promote an eCommerce Website
You've got an incredible eCommerce website selling products that you know there's a market for but if your website isn't gaining the traffic it deserves, some promotion might be needed. Getting people to visit your website is a huge task but there are some steps that you can take to deliver a boost.
04/18/2018 10:03 AM
4 Exclusive Features That Give an Edge to Your Ecommerce Website Development
The dream of every entrepreneur stepping into the world of ecommerce is to take their business to a new height of success. A loyal customer base, lots of traffic on the online store and sale of products is what every business owner wishes for.
04/18/2018 10:02 AM
Best Ecommerce Platform for Your Online Business
The ecommerce industry has shown a remarkable growth across the globe. During the early ages of ecommerce, there were just a handful of online stores that would deliver at specific locations. But with the rapid growth of ecommerce, several entrepreneurs have converted their business ideas into reality.
04/18/2018 09:59 AM
4 Important Tips to Consider for Ecommerce Website Development
Ecommerce shopping is the buzzword of our times with millions of customers across the globe opting for online shopping over brick and mortar shops. This has made it imperative for retailers to go for entrepreneurs are still focusing on ecommerce website development or finding a reliable turnkey solution to take their business online.
04/17/2018 02:58 PM
How to Increase Orders and Order Values on Your eCommerce Shop
While conversion rate optimisation (CRO) often focuses on pushing more shoppers over the line to complete check out, there are also a number of techniques and tactics you can implement to increase cart values too. If you're looking to increase the volume of orders your eCommerce site transacts, along with the order value of those purchases, read on for a series of tried-and-tested tactics to implement now.
04/13/2018 01:40 PM
Want to Own An Online Grocery Store? Get These Custom Magento Themes
While online shopping is an unstoppable trend in this digitized era, grocery shops are also having a niche market. Custom eCommerce themes are making that possible, i.e. helping grocery retailers to create beautiful stores as online counterparts of their physical shops. This article presents up some of the outstanding Magento themes, popular for creating online grocery stores.
04/11/2018 09:51 AM
Top Ecommerce Platforms for Success of Online Stores
With the help of ecommerce platform providers, it has become easy to build an online store. However, to grab the attention of customers and convince them to buy from your online store needs more efforts.
04/11/2018 09:35 AM
Returns Tsunami To Hit Online Retailers With TBYB?
Try before you buy (TBYB) is fast becoming an eCommerce trend that must be considered with caution. It's a scheme in which online shoppers can order dozens of items to try on, return those that they don't want to keep, and then receive a refund even though the retailer whom they bought from hasn't processed the returns yet. Find out from this article if it's worth adopting for your business.
04/11/2018 09:22 AM
Delayed Product Deliveries and Its Impact on Your Ecommerce Business
Running an ecommerce business is not as easy as it seems. One needs to ensure that a lot of things are in place. Timely deliveries are one of the major aspects that e-store owners struggle with. This article will acquaint you with the ways in which it affects your business and how different delivery date extension tools can help.
04/10/2018 09:35 AM
E-Commerce Website Designing Services Are the New Age Business Help
As an e-commerce business, it is very mandatory to build a website that has all the features that can make the shopping experience for the customers to be real and original. People or online visitors often tend to fall for a website that has creative yet functional features and can make their shopping time or experience to be worthy or satisfactory.
04/06/2018 08:42 AM
4 Best Functionalities Provided by Multi-Seller Ecommerce Platforms
The progress of marketplaces has been exceptional in the recent years fuelled by increasing number of online buyers. This has encouraged several ecommerce entrepreneurs to build their own marketplaces and start their ecommerce business by listing multiple vendors on their platform.
04/06/2018 08:42 AM
Top Reasons Why Marketplace Owners Should Build an Online Store
It is believed that one of the simplest ways for any brick and mortar retailer to enter in the ecommerce world is by getting listed on a marketplace. All you need to do is list your products on the platform and wait for receiving orders from the customers.
04/06/2018 08:41 AM
How to Build an Online Store in No Time
Ecommerce has proven to be a blessing for numerous entrepreneurs who have succeeded in selling their products online. Listing the products on marketplaces like Amazon, FlipKart and Snapdeal was the way to reach customers situated at various locations in the early days. Now the trend has switched to having an independent online store for obtaining more profit. So one of the most common questions asked by a number of brick and mortar retailers is,
04/06/2018 08:41 AM
Ask Before Choosing an Online Store Builder for Your Ecommerce Business
The ecommerce industry has made a remarkable growth by serving customers throughout the globe. However, the journey was not so smooth. Gaining the trust of customers who believed in purchasing from brick and mortar stores was never a cake walk.
04/06/2018 08:40 AM
How to Build an Ecommerce Platform
The trend of shopping has shifted from the physical markets to ecommerce stores. People are loving the easy way of shopping from anywhere at any time without disturbing their schedule. The ecommerce domain has generated huge revenue so far from the time it was initially introduced. The ecommerce domain is booming in Industry also and there are several e-commerce platforms that are making it easy for entrepreneurs and enterprises to go online.
04/06/2018 08:10 AM
Running A Magento Store? Avoid These Commonly Made Mistakes
This article is going to highlight a few commonly made mistakes while running a Magento e-store. Go through the points and try not make these mistakes. Since the time of its invention, Magento is immensely popular among the developers due to its amazing functionalities, flexibility along with the large community support.
04/05/2018 09:38 AM
Plan The Right Keyword Strategies With BigCommerce
BigCommerce is an e-commerce platform for designing your e-store. The features of this platform include SEO strategies and keyword search to get a better ranking on Search Engine Result pages (SERPs).
04/05/2018 08:25 AM
Quirky Tips For A Perfect Checkout Process
The key idea of this article to present some persuasive ways by which eCommerce retailer can create a perfect and seamless checkout process. A well-executed and streamlined checkout amplify sales conversions by reducing abandonment, and removes your last step hurdles in converting visitors to customers.
04/04/2018 02:12 PM
How Recurring Payments Can Effortlessly Improve Your E-Business In 3 Simple Ways
Subscription payment or recurring payment is one of the most important aspect in digital marketing. Most of the businesses are striving to improve this phenomena. Let's dig deep into how we can build better prospects for recurring payments.
03/29/2018 09:12 AM
What Makes WordPress the Best Choice for Developing Small Ecommerce Stores?
You must have come across a lot of Ecommerce Stores that have been created on the WordPress platform. If you have not considered creating your WooCommerce website, this piece of writing will give you a lot of reasons to do so.
03/27/2018 09:38 AM
UK's Big Online Retailers See Sales Jump To 23%
With raised eyebrows, owners of small and medium-sized online businesses might say it's not surprising to hear large retailers experiencing a boom. After all, they have the means to carry out a new game plan for the advancement of their eCommerce pursuits. That may be partly true, but the bulk of their success is a result of their use of mobile applications that provide online shoppers with the best shopping experience on their smartphones.
03/22/2018 03:51 PM
Easy Tips to Instantly Save Money on Your eCommerce Strategies
This article is about "How to save money on eCommerce business?". People when they come up with their business, they are trying to invest more without knowing the result of loss or profit. There are ways through which we can save money on eCommerce business also business is promoted.
03/21/2018 11:38 AM
3-D Ripple: The Dilemma of Giants
As Industrialisation 4.0 is right at the doorsteps, are the e-commerce Giants prepared for the next wave of Disruption? Are the leaders of tomorrow prepared for the tightening and agile PODA loop?
03/19/2018 09:28 AM
Rise In Online Delivery Amidst Heavy Rains
The January rains kept people indoors and the high street surprisingly lacklustre, though nothing stopped shopaholics from getting what they want. The weather affects nobody anymore, especially their shopping habits, as people can shop anytime anywhere these days so long as they have their desktop computer, mobile phone, or other devices to hand. And with a range of apps designed for mobile shopping, consumers can easily obtain their needs (and wants) with just a couple of clicks, without having to worry if the weather agrees to it.
03/19/2018 09:22 AM
Your Complete Guide To Google Shopping
Google shopping is now more effective than "text ads" for retailers, yet there are fewer retailers using Google Shopping. Better market and less competition. If managed effectively, Google Shopping can deliver a fantastic return on advertising spend. Here is a complete guide on how to do Google Shopping well.
03/15/2018 08:35 AM
How Magento Developers Can Help You to Increase Your Online Store Conversions
Ecommerce is booming and has become the only trillion-dollar industry that allows online retailers to sell easily. With more than 2,00,000 online stores powered by the Magento platform, it has helped retailers to face the tough competitive market and survive by offering best in class features and functionalities.
03/08/2018 11:06 AM
Most Recommended 10 Magento 2 Extensions for Every Magento 2 Store
1. Magento 2 Gift Card - Don't you jump with joy when you receive a gift? It enables store owners to generate more business as well as it also encourages their buyer to come back and redeem their gift card. 2. Magento 2 Product Label - a. You might have seen some labels, depicts some offers going on such as 'Sales', 'New', 'New Item', 'Limited Stock', 'Hurry' and much more...
03/07/2018 01:50 PM
Benefits of a Multi-Vendor Ecommerce Store
The ecommerce industry has made a remarkable progress by helping the customers in fulfilling their needs efficiently. However, with the increasing number of ecommerce retailers, the competition in the market has increased. Thanks to the development of technology, starting an ecommerce store becomes an easy task for the entrepreneurs who wish to enter the online retailing world.
03/06/2018 09:12 AM
How to Use Low Stock Levels To Sway Purchase Decisions
Better let your customers know if your stock is running low than upset them when they find the item they want gone. Nothing can be more frustrating, especially if they got their eye on a particular thing and have been planning to buy it. Notifying your customers of low stock items will help them plan their purchase. If they're dying to get their hands on something which is likely to disappear in 10 minutes, at least they can buy it then and there or request you to reserve it for them.
03/05/2018 12:05 PM
4 Aspects to Consider Before Investing In a Custom Product Designer
If you want to stand out amongst your competitors in the competitive ecommerce market, it's time you invest in a Custom Product Designer. Know what pointers you need to keep in mind before you configure one of these tools with your ecommerce platform.
03/02/2018 09:18 AM
Major Ecommerce Mistakes That Could Be Killing Your Sale
Your Ecommerce Website is your medium to connect with the audience. Thus, it has to be perfect and professionally designed to deliver the best experience to the user. Your conversion success rate depends on the structure of your website and overall performance it delivers.
02/27/2018 09:38 AM
4 Primary Features Shopify Offers to You
Shopify is a shopping cart platform for designing your e-commerce store. It comes up with some essential features that will help you make your store attractive to your buyers. Everything on Shopify is easy and simple.
02/22/2018 10:43 AM
Thinking About Moving Your Business Online? Here Are Some Advantages
Let's face it! Days of traditional commerce are long gone. More and more businesses are nowadays considering expanding into the world of eCommerce in order to keep up with their competitors.
02/19/2018 09:01 AM
UK Online Sellers Make Headway In China's eCommerce
What do you do when a giant online retailer from the country with the largest eCommerce market comes to town and asks you to join their party? Of course, you say let's go! The United Kingdom currently have the third-largest eCommerce market in the world, but if their online retailers start using China's online behemoth who knows where they'll be in 2020?
02/16/2018 11:08 AM
Best Ways to Scale Your Ecommerce Business
Wondering how to Scale your ecommerce business? When you are planning to start a business, there are many things that you need to consider before you can actually start it. The very first step is to come up with an idea and then make set up a solid profit earning plan.
02/15/2018 08:13 AM
Smart eCommerce Trends That Are Going to Rule the Market of 2018
This article is going to pinpoint the booming trends in the Odoo eCommerce development field that would dominate the market of 2018. According to a recently made survey, by 2020 the industry of eCommerce would grow following an exponential graph.
02/12/2018 09:26 AM
Why Do You Switch to BigCommerce for Your E-Store?
BigCommerce has widened the functions for the companies planning to open up an e-store. It is a shopping cart platform that comes up with many essential features from selling a product to optimizing a site. Read on to know why you should switch to BigCommerce.
02/09/2018 09:10 AM
Follow 11 Simple Tactics to Develop a Customized E-Commerce Website
The web world unfolds wide horizon for various opportunities for the users. One such opportunity led to the launch of online businesses. Many entrepreneurs are upgrading their physical businesses to online store through e-commerce websites.
02/08/2018 09:22 AM
How to Boost Sales Using the Magento 2 Checkout Feature
Cart abandonment is a nightmarish issue for the ecommerce vendors to deal with. Read on to know how the Magento 2 Checkout feature can help you get rid of this issue and boost sales.
02/07/2018 02:40 PM
The Redefined Heights of Ecommerce Possibilities
Understand how the ecommerce store owners can evaluate their success during the festival season and month on month growth? Know more about the science of data driven changes for your web store.
02/06/2018 09:30 AM
The Irreversible Damage Ghosting Customers Creates
Ghosting is commonplace in dating, as it's a shortcut-albeit unpleasant-to breaking up with someone. However, it has inevitably caught on in the eCommerce industry as some retailers don't have the decency to communicate with their customers following a purchase. Disappearing on someone, whether a date or a customer, is never a good thing, but it has more serious repercussions in one's business than in their personal affairs.


home | site map |