Vital Points For Drop Shipping

When selecting your drop shipper, there additionally are several important considerations you have to pay attention to. Such issues can establish the successfulness of your business in the long term.

Wholesale Costs

The first issue to consider is the wholesale costs of the products. Ideally, the drop shipper should offer prices low enough that you can make a substantial profit when selling at the price.

Though the pricing points would not alter a lot for drop shippers of identical products, some drop shippers do provide a a little lower wholesale price than other suppliers for a similar product quality. Your business can benefit tremendously if you first scout around for wholesalers offering lower costs, as you can make a larger profit margin for each sale.

Or, you may also barter the pricing points with one or two of the drop shippers first, as a few of them allow greater room for negotiation than others. If your dropshipping business can sell bigger quantities of products, you may be able to secure a lower price for the products, like the discount given for bulk purchases.

Shipping Costs

The next issue you want to think about is the shipping costs. If your drop shipper is located in the same country of your target market, then you only need to pay for local delivery services. From the other standpoint, if your audience is found in a different country from your drop shipper, you can attract high shipping costs due to world shipping. It is so better to choose a drop shipper found in the same country as your client reach.

Having a drop shipper in the same country as your market also eliminates the hassles of world shipping, like security checks and slow delivery time. A lower shipping cost also inspires more purchases from your customers, increasing your profits.

Some drop shippers might also charge a further handling fee for delivering the products to your clients. You need to pay very close attention to additional costs like this, as they may cut into your margin. Be certain to agree on a particular drop shipper after you've conscientiously researched all the costs.

Credit And Billing

The subsequent issue you want to think about is credit and billing. Before starting your business, you want to explain your method of payment. Does the drop shipper send you a once a month bill for all of the products for each month? Or can they mechanically subtract from your credit card each time a purchase is created?

This is vital for the cash flow situation of your dropshipping business – the more you can keep ‘liquid ‘ credit with your business, the healthier your cash flow situation. Some businesses have inevitably slumped due to poor cash-flow management.

Product Returns

Also , you want to consider whether your drop shipper entertains product repayments and returns. Of course, a drop shipper which has product refund offers is advantageous. In the case that your buyer receives a damaged or unsuitable product, the consumer can then return the product to the drop shipper for another one, giving your business a better reputation of satisfying the customer’s needs.

Sometimes, the drop shipper sends your products labeled with your company name, logo and address. Therefore, if your buyer contacts you for a product return, you must then provide them with the address of the supplier.


The final point you want to think about when choosing your drop shipper is the trustworthiness. Always choose a drop shipper that's got a better reputation and that has been around for a longer time period. Also consider the customer service of the drop shipper. If the drop shipper does not respond to your info requests professionally, then you should be doubtful of doing business with them.

To conclude, when picking your drop shipper, focus on these issues – price points , shipping costs, credit and billing, product returns and credibility. This could guarantee your drop shipping business the greatest likelihood of success.

Amanda has been a consultant for many firms with reference to dropshipping to Singapore. She has planned, strategerized, and discuess various trails for firms that know the vital of dropshipment, and is well known for her dedication, particularly in the Pacific Rim area.