Drop shipping is a business model where you take orders from customers and a supplier fulfills those orders directly. It’s an ideal business model for online entrepreneurs because you don’t have to manage stock. It makes it easy to sell online. The only problem is that if your supplier is a slouch or scammer, it can ruin your business. They may run out of stock or miscommunicate with you, and then you’ve got unhappy customers on your hands. read on …..
Look at Reputation
You can avoid working with a shady supplier by simply going with a trusted name. Choose a recognized wholesaler or vender that you’ve heard of before. Many regular companies offer drop shipping and you can use their services. You can also check out a drop shipper’s reputation by reading online forums.
Another way is to ask them for references. If they can’t give you any, skip them. If they can provide them, contact several of their references and see what they have to say. The references should come from different sources (for example, not all from the same forum) or they could be fake.
Scam Artists
Check to see how long they’ve been in business. They should be established and have several years of experience as a supplier. Some companies advertising themselves as drop shippers are scam artists. They close up shop when they get caught and reopen under another name. This is why it’s dangerous to pick one that hasn’t been around.
They shouldn’t charge you a membership fee. This is a common scam. You have to pay them to use their services, and then instead of handling your orders for you, they give you a list of drop shipping companies. The company isn’t actually a drop shipper. You’ve just paid for a list you could’ve researched yourself on Google in about twenty minutes.
The Price Is Right
Not all wholesalers offer true wholesale prices. This isn’t a scam but just something to watch out for. If you’re paying a lot for their merchandise, this will cut into your profits. Look at other sites that sell the same goods and compare prices. If what they offer isn’t much under the retail price, keep looking.
Other Details
Check to see what shipping company the supplier uses and make sure it’s reputable and reliable. If not, you’ll have supply chain problems that will disrupt your business. You can research shipping companies online.
Finally, when you’re talking to them, ask them for specifics on how they solve problems. Your supplier is supposed to take an active role and not just function on autopilot. Ask for specific instances and how they stepped in to fix the problem with past merchants.
I know this sounds like a great deal of work, but it’s well worth it. Countless times I’ve seen people in forums saying, ‘Drop shipping just doesn’t work.’ I always want to reply, ‘You just didn’t pick the right supplier.’ The due diligence really pays off.
Tony
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