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The whole spectrum of doing
business has undergone a world of change in the last few decades. One of the
latest online business ideas is dropshipping services. This online business involves a process in which
manufacturers or suppliers deliver the products directly to the customers of
the dropship business without the business having to pre-purchase or stock the
goods. The best part of the bargain is that the business owner, or reseller,
does not have to do any hard work such as inventing, designing, buying or
making the product, testing the market, describing the product on the website,
making the website attractive, or promoting the product.
The dropship services business
owner just has to list the products on eBay and get orders for the products by
using its own or the supplying company's descriptions and graphics. When the
orders are received, the reseller supplies the information regarding the
buyers' names and addresses and other details of the order, so that the
supplier can send the products to the buyer. The company also collects the
payment.
The business of dropship
services can reap rich returns for the business owner, but the most important dropshipping guide is that it is necessary to take care of the business
and customers to ensure that any buyers' complaints regarding poor product
quality or delays between receipt of payments and delivery of goods are tended
to promptly. Any negligence in providing necessary after-sales services and
attending to complaints can tarnish the image of the company and lead to loss
of revenue and future orders. In order to find an answer to how to dropship and
how to start a dropshipping business, it is vital to select a reliable supplier. The
wrong selection can have disastrous results. Follow the following steps before
starting this type of business.
1) Select Recommended
Suppliers: The first step for starting a dropship services business is that the
sourcing of the suppliers should be done with great care. Simply select the
suppliers recommended by other people. It is possible to get free or paid-for
lists of dropshipping companies on Internet directory sites. Some give accurate
information whereas others might be owned by unscrupulous suppliers, so avoid
those particular recommendations.
2) Check the Contact Details:
Once a selection is made based on reliable recommendations, and after checking
that the range of products that the business intends to deal are sold by the
supplier, check the contact details provided by the supplier. Pertinent contact
information such as phone number, email address, and a mailing address should
be available on the supplier's website. Avoid any supplier with incorrect or
with no contact information at all. Make sure the phone is answered and see how
long it takes for the supplier to answer emails, which may come in handy later
if you have a reason to contact them with a problem.
3) Check Business Terms: Since
there can be disputes with the supplier regarding faulty goods or undelivered
items, business terms and conditions of the supplier should be properly stated
and understood by the reseller. Realize that the responsibilities of the
business as a reseller are different than the responsibilities that the
supplier would have toward the reseller.
4) Unreasonable Subscription
Fees: As a reseller, the dropship services business has to pay resellers
registration fees and, in some cases, ongoing subscription charges for the
right to access the supplier's catalogue. Access for a limited time is normally
allowed before registration. Before registering with any supplier, check
whether it charges ongoing subscription fees. Fine print should also be checked
well for any between-the-lines clauses.
5) Beware of Middlemen
Disguised as Suppliers: Check whether the potential supplier holds enough stock
of the products and they are not a middleman posing as a supplier. These
middlemen place orders with the real supplier and when they receive orders from
the reseller and, in this process, long delays can take place. These delays can
result in losses to the customer and subsequent losses to the reseller because
the payment would have to be refunded.
6) Modes of Payment: Find out
how the supplier expects to receive payments because the most convenient mode
would be the same by which the customer pays the reseller. This will save
charges and time. It is also advisable to avoid having to pay by Wire Transfer
or Telegraph Transfer because the risk is higher if there is no customer
protection.
7) Beware of Companies Selling
Fake Goods: While choosing a supplier, avoid those sites that offer branded
goods such as designer clothing and electrical goods at unbelievably low
prices. Such low priced, so-called designer goods are bound to be fake unless
the supplier is trustworthy and renowned and he has obtained the goods from a
close-out, or if the goods are refurbished or Grade A returns. If the reseller
sells fake goods, he can be accused of selling counterfeit goods.
8) Look for Web Reviews: Having
short-listed a few suppliers, it would be helpful to seek out reviews and
comments regarding the companies on Internet forums from other dropship
resellers. Although it might be difficult to find any good comments since the
resellers would not like others to know about their profitable source, bad
reviews can certainly help in making the right decision.
9) Look for Artists and
Craftsmen: Teaming up with artists and craftsmen for their creative products is
a unique way to do dropship services business. These creative people usually lack
marketing savvy. Visits to local craft fairs can provide unlimited
opportunities to get stunning creative items at unbelievably low prices as
compared to eBay prices. The dropship business need not buy these items, but an
arrangement could be worked out for working on commission. They will likely be
happy to take his payment and deliver the products to the buyer of the dropship
business when a sale is made.
