Choosing the right supplier for a drop-ship business is an important thing. If your supplier has a problem, you will be responsible for solving it with your customers, not their business.
Find A Dropship Supplier
Do you want to make sure you have chosen the right person to work with your dropship business?
Not everyone who runs dropship understands the dropshipping method. However, there are several ways to find a needle in a haystack. Before we discuss how to find your drop shipper, let’s look at what good supplier criteria are.
1 Experienced And Helpful Salesforce
One thing that I personally look for in choosing suppliers for dropship is that it can represent good sales.
I want to make sure that I can contact them and answer my questions as quickly as possible, and they can provide me with a solution to deal with the problem I’m facing.
Although that is the supplier’s dream criteria that I am looking for, in reality, there are no good suppliers that are completely and there will be questions that they cannot answer correctly.
But later they must be willing to immediately find the right answer to the problem you are having with customers and get back to you at the right time.
2. Don’t Charge A Large Fee
Some suppliers charge a “per-order” fee. This is a fee that you inevitably have to pay every time you place an order with them. It makes sense because they have to spend additional time and resources to package and ship orders for your customers.
However, sometimes suppliers take advantage of these costs and charge quite outrageous fees. They ask for additional fees ranging from Rs. 5,000 to Rs. 15,000. Is this extra fee too high? It depends on the profit margin that you produce on your product.
My advice is to do a mathematical calculation and see if you can still make a profit when faced with high per-order costs. If not, keep looking.
3 Fast Delivery
If your supplier takes more than 24 hours to deliver goods (no later than 2 days), then the supplier is not the right choice for you.
Dropshipping is a very competitive market and there is no room for too long a shipping process. The competition will defeat you if you take too long.
On the other hand, if you can find suppliers who send dropship very quickly, you will get a competitive advantage. To find the best dropshipping company, I suggest doing a test before you make your final choice.
4. Product Quality
As we discussed above in the section on finding products for dropship, finding the best drop shippers means finding the drop shippers that sell the best products.
Selling high-quality products such as:
- Higher customer satisfaction
- More referral by word of mouth
- Little profit
- Better product reviews
I can’t even think of weaknesses to sell quality products, other than margins that might be lower.
However, the benefits above will mean more profit for your business over time than you can get from selling high-margin but low-quality products.
5. Invested In Technology
The latest technology in automation, efficiency, and scalability will be increasingly important to you as your dropshipping business grows.
Some signs that the drop shipper is invested in technology include:
- A detailed website with full product descriptions
- Inventory data feed to automatically update your product list
- Option to place and cancel orders on their site and via email
Of course, not all dropshipping companies will have this powerful feature. Don’t count them just because they don’t have a beautiful website-keep these things in mind during your search.
6. Brand Products
In the section on finding products for dropship, I talked about how selling brand products might be a bad idea. This applies to beginners.
However, when you advance as a dropship shipping business owner, this might be the category you want to overcome. If you think you ultimately want to sell brand products, this is a factor to consider when choosing a supplier.
Of course, whenever the need to find information arises, the first source we visit is usually Google. Google is a fast way to find a wholesale dropshipping company, but also comes with its own risks and fall.
The easiest way to find wholesale drop shippers on Google is to search for “[Product] + dropship.”
There are 88,200 results. What is better? You can judge how reliable one of these sources is. You must enter each of them through a rigorous inspection process.
8. Contact Dropshipping Supplier
After you have made a small list of wholesalers or potential drop ship shipping manufacturers, it’s time to contact them to find out if they are a good fit.
Email first. It’s much easier to get the information you need by email than by phone. An email will give you all the information you need without wasting time while waiting for the phone to wait.
Follow up with a call. After you send the e-mail, increase the chances of your response (and learn more about how good the support is) by sending a follow-up phone call).
9. Say To The Dropshipper
When you think of sending an email to a supplier or contacting them, you may wonder what will be conveyed to them, right? Here are my recommendations:
Be prepared with a list of questions. The key to strengthening your determination and sound like a professional is being prepared. Questions help you learn more about your suppliers, see if they are suitable, and show that you have done your homework.
10. Payment Terms
This is a pretty basic question. This will help you see the actual price (the price listed on their website is often higher than what they actually pay) and get the best deal.
Are there any costs besides the direct costs of the product?
Some suppliers charge shipping, additional fees, restocking fees for returns, or duties on imported goods. It’s good to know what you face in the future.
11. Sell Directly
It is not uncommon for suppliers to sell directly to consumers besides selling dropshipping services. You should know this before choosing it because if the answer is yes, you are in direct competition with your supplier – which can make things difficult.
12. Return Policy
Sometimes the customer makes a mistake and orders the wrong item, and sometimes the supplier accidentally sends the wrong item. This will happen and maybe you want to know how your supplier will handle this situation.
13. Gross Margin
Gross margin is a business that talks to the amount of money you make after selling something minus the cost of the item for you (also called a gross profit margin).
Even if you set your own prices, your supplier should be able to tell you what other sellers are making, on average.
14. Prices Change
It’s not uncommon for suppliers to price changes to you from nowhere. A big shift like this can hurt your business, so it’s important to know when this might have happened before.
To offer your customers a good return policy for products that don’t work, you need to know what kind of warranty your supplier is providing.
Can your service representative answer my product questions?
While it’s not 100% necessary, it’s a good idea to know how much you can rely on your supplier to answer your questions about the product. The more complex the product, the more important it is.
16. Data Feeds
Remember when I mentioned the data feed in the “invested in technology” section? It’s a good idea to know if your supplier supports data feeds so you can easily update your store without entering information manually such as quantity, description, images, etc.
17. Make Custom Items
Part of being a shop owner, in the long run, is improving existing products to give yourself a competitive advantage. If you plan to make your own unique product, you need a supplier or manufacturer who can customize your goods.
One last tip when contacting suppliers …
Wholesale dropshipping supplies and even manufacturers are looking for people who are in it for long games. Whether you believe you will run your online store in 10 years or not, you still want to look like that.
If you sound like a beginner (for example, you don’t know what you’re talking about), the supplier will charge you a higher price or even not respond at all.
My best advice for sounding professional: use email templates, do your homework, and ask questions. If you do these things, you will get the best deals and the best suppliers.
19. Avoid Dropshipping Scams
Unfortunately, not all drop shippers have the best interests in your mind. There is no shortage of people out there who want to steal your money.
However, there are several ways to protect yourself and make sure you are never scammed:
20. Using Website
If you are still unsure about choosing a supplier to avoid fraud then you may use a Dropshipping supplier. The cost of joining Dropshipping is Rs.150,000 with the active period forever and we have up to date learning materials for product marketing, as well as the community. But, I will not encourage you … much!
21. Warning Sign
There are a few red flags to look out for when looking for wholesale dropshipping suppliers:
Monthly fees or membership fees
While some legitimate suppliers charge a monthly fee, some just want to take your money. The easiest way to avoid these scams is to find out why they charge fees. If the reason sounds honest, maybe it is. Do your research
22. Avoid Address
Every trusted supplier must display an address, so if it does not show the address is a big mistake. Dropshipaja has the exact address on the bottom page of the website.
23. Avoid Cheating
Here are some direct actions you can take to check each supplier on your consideration list:
24. Check The Age
A new age domain name might mean a new business, which (in the case of suppliers) often means fraud. Most suppliers have seen one or two things and about a few moments.
But you can check the domain age from other suppliers’ websites using the Domain Age Checker tool.
If someone has a bad experience with a supplier, they might write about it online.
The easiest way to find these writings is to search for “[Supplier Name] + Fraudster” on Google. Often, if the supplier has committed fraud, you will soon know the results.
25. Contact Them
One of the fastest and simplest ways to find suppliers that is not right is to contact them. Ask the question I raised above. If they stutter or have difficulty answering, they must write a few missing lists.
In many cases, a telephone number won’t even work.
If their address does not appear or is actually not their place of business, it is not difficult. See street views on Google Maps to see their buildings. Does it look like a distribution center or just another home or business?
27. Ask The Manufacturer
Usually, each manufacturer has a list of all wholesalers and suppliers that they sell. If the product manufacturer does not have their name, there is a possibility they are not legal.
28. Make A Small Order
I mentioned this several times above. Creating a small test sequence is a great way to determine supplier expertise while ensuring that they are not a fraud.
Congratulations, you have now (hopefully) found your ideal supplier! This is one step to creating a successful dropshipping business.
But you haven’t finished – go on to the next section to find out about the daily operations of running a dropshipping business, and how you can market and develop your new online store.