Wholesale drop shipper

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By Flute

Factors to Consider While Choosing a Wholesale Drop Shipper

Whether through Ebay or a standalone website, more people each day are embarking on a career of online retailing. With the popularity of using drop shipping as business model, it is essential to know what factors are important when choosing a wholesale drop shipper.


1 Quart Aluminum Canteen, Cover & Belt set
1 Quart Aluminum Canteen, Cover & Belt set

The first factor is the total cost of a given product

The first factor is the total cost of a given product. Years ago, the "in" thing to do was undercut your competition by $20 on price then turn around and overcharge by $25 on shipping. This doesn't work in today's world because as more and more people have become comfortable ordering products online, they have also learned what dirty tricks to look out for. If you plan to specialize in a certain product, it only makes sense to get that product from the source that will give you the best price on it and allow you to maximize your profits and entice customers with a very attractive price. If you plan to carry a variety of products, you will need to do a great deal of research and compile a head-to-head comparison of all the products you plan to carry and the various manufacturers of those particular products.

Minimum Order Quantity

The second factor to consider is what the drop shipper's minimum order quantity is. As a general rule, the bigger the minimum order, the better the price. This is why Home Depot drives small hardware stores out of business. Home Depot's volume is so great and their costs so favorable from major manufacturers that they can often afford to sell a product at a lower price than what small hardware store must pay the factory just to stock the item. If the minimum order is large enough that your business won't be able to cover it, you'll probably need to strike that drop shipper off your list until your volume grows enough to satisfy the minimum order. If your volume is very close to the minimum order, you may find yourself making a tough decision. Either buying extra product to make the requirement or forcing your customers to wait until you amass enough orders to satisfy the minimum. It is a good idea when choosing a wholesale drop shipper to work with those who either have no minimum order, or a small enough minimum that you're confident you can meet it.


Backless body shaper - Brief style bottom
Backless body shaper - Brief style bottom

Location

The last and most important issue to factor in your decision is the location of the manufacturer. This can cause a variety of problems if you don't do your homework. If you have a customer in Oklahoma, and the manufacturer is in Thailand there could be shipping issues. Some foreign manufacturers either don't have access to, or just don't utilize the faster couriers like UPS or FedEX. If the product needs to go a long way and the only shipping option is literally via ship, the product can take an incredibly long time to get to your customers - not a good way to cultivate happy repeat customers. This leads to the next location issue: Language. Remember, when your customer has a problem with receiving the product or dealing with any damaged or lost product issues, the manufacturer is going to be doing your customer service. It's important that the manufacturer has a responsive staff that speaks the language of your customers. Even if you choose to act as a go-between for your customers and manufacturers, you will need to verify when their service staff is available for phone calls and that you can reliably communicate with them.

Getting the best possible cost for your products. Working with manufacturers who have no minimum order (or a minimum order that your business can comfortably meet). Being sure your manufacturer has shipping options that will satisfy your customers. Verifying that your manufacturers have a service staff that is both available and able to communicate with you and your customers.

When choosing a wholesale drop shipper, getting these ducks in a row will guarantee that you're ready to do business and succeed.

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