Things To Consider When Choosing a Dropshipping Supplier

There are various things you need to consider when choosing a dropshipping supplier.

Dropshipping is a unique retail selling model that allows you sell items without having to keep any products in stock. You partner up with supplier(s) that stock in your inventory and handle everything for you from packaging to shipping.

For small business owners, it is difficult to keep huge stock of inventory when starting out. Dropshipping eases the burden for them. They can simply, list their items and order directly from their supplier when the items sell, avoiding extra costs like packaging, storage cost, shipping etc.

When starting a successful dropshipping business, it is essential to find the right supplier. Here are five essential factors to consider when choosing a drop-ship supplier –

  • Products Options –

It is important to find a supplier that would provide you with products that fit your niche. Along with this, they should also have pictures and description that you can use when listing them on your store.

  • Customer Support System –

Opt in for a dropshipper that has a good customer system in place. Many small companies out there that may have inventory, sell at cheaper rates than their competitors but would have a poor customer service. This not only affects their business, but can also have an impact on yours.

  • Easy website navigation and order processing –

The advantage of doing dropshipping is that it not only saves you ton of money on inventory it also saves you time on order handling and packaging. Therefore, it is essential to have a supplier that has order processing systems in place that can be integrated with software, thereby, making dropshipping easy and quick.

  • Shipping Prices –

According to a research conducted by Amazon, 46% of customers, will not go ahead with order processing if they are not offered with “free shipping”. Knowing shipping prices is essential when selecting a dropshipper. There are some suppliers that offer free shipping from up to a certain amount, while others that offer varied shipping cost. Choose a supplier that offers reasonable costs so it doesn’t have a huge impact on your selling price. For low price items, you can add the shipping cost into your product cost to calculate the final selling price.

  • Handling Returns and Refunds –

Different suppliers have different systems in place for handling returns and refunds. Some even charge a certain %age of re-stocking fees when returning un-damaged goods just because the customer changed their mind. You’ve ought to charge what the supplier charges you to avoid going into losses. Therefore, when choosing a dropshipper, make sure you know all these information.

Consider the following questions when you contact any supplier the next time

  1. What is their order processing time?
  2. Do they charge for shipping?
  3. Do they offer return? What is their return policy?
  4. Do they offer 30 days return or 90 days?
  5. Do they charge re-stocking fees or return fees? (Don’t be surprised, some sellers do!)
  6. What are their policies on damaged goods or wrong item received?
  7. What is their return processing time? Do they send a return label immediately or does someone from return department contact you later before sending a return label?
  8. Who pays for the return? You or the seller?
  9. Do they have an option of courier pick or do you have to go drop off the item?
  10. How do they deal with situations where the tracker says delivered however, the buyer still hasn’t received the item?

Most of these information can be found in the FAQ section of the supplier, however, if not, don’t hesitate to ask them. It is very important to have all the information before you start selling.

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What do you consider when you talk to a supplier? Did any of the above tips help? Would love to hear from you in the comments below.

Let Today Be The Start Of Something New.

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