If you are an Internet retailer, a retailer who also has a website, a mail order retailer or a directory company, you can find the term drop shipping attractive. After all, losing shipping eliminates the need to buy inventory, store it and send yourself. Working with a good manufacturer, importer or wholesaler who will let go of the ship offers many benefits, including low costs and higher profit margins than you might realize through common affiliate programs. The beauty of using such a service is that it allows you to focus time, resources and energy on building and expanding your customer base rather than sending out products you have already sold.
The drop delivery process includes four basic steps:
You advertise specific products and order for these products.
When you make the sale you get your money.
You then send the order together with the money to wholesale and shipping costs to the manufacturer, importer or wholesaler.
They ship the product directly to the customer.
Its a simple and efficient process. Its so long youre working on a quality, reliable drop shipper. If you end up in a contract with an unreliable company or a bluff artist, your reputation, profit margin and entire company may suffer and be destroyed. When you decide which businesses to do business with, there are some methods that you should be careful about.
Most often you will look for working with some companies or maybe even a company whose products you represent and sell. Essentially, you sell specific goods with the resulting sale that benefits your company and the manufacturer, importer or wholesaler.
With this in mind, you should never be required to purchase a membership to sell another companys products. The types of companies that charge such fees usually say that they offer a full range of items backed up by a marketing department. They will also include your own e-commerce website that you can use to sell their goods. Such turnkey companies are filled with high start-up and installation costs, monthly membership fees and other hidden costs. In addition, you often only offer their products on their website.
Does anyone ever win from these turnkey companies? Yes, the people who sell them to unforeseen retailers make big sums of money. Do not fall for this bluff. The only fees you will ever be charged are those for the product and for the delivery of the product. Legitimate drop shippers can charge you a fee, which will be refunded once you have started shopping.
In addition, you never pay a drop shipper a membership fee or license fee for the right to let them drop ships for you. The concept sounds ridiculous, and it should. Its another con. They already make a profit from the work you are putting on selling their product, why should you pay a license fee for the right to send them that product? Will you pay for shipping? Of course, but it should be on a merchandise or shipment and no additional fees should apply.
There are also lists of fake drop shippers sold to potential retailers. A legitimate company can spend hundreds of dollars on such lists, which are actually the names of intermediaries posing as drop shippers. Assignment through these sham shippers will result in you paying a lot more than you should for your products.
You may also be tempted to buy relatively inexpensive lists of drop shippers. These listings are cheap because they contain outdated and / or false information. When you try to contact the companies on the list you will find that they have been on business or never even existed.
Lastly, regardless of the company you contract with, make sure you have it in writing that the manufacturer, importer or wholesaler will not market for your customers. The customers you sell directly to and the shipping provider, through your order, send to, belong to you and not them. You have done all the land and legwork to sell to your customers and it is not an option open to your sender. Any legitimate company will approve and honor such a contract.
Be sure to ask companies about their shipping policy, including fees, delivery time, return policy and chargeback procedure.