Most of us are not aware of this term “Drop Shipping”. Let us first try to know what exactly this concept is and then take a foot forward to give a try for this kind of business.
What is Drop Shipping?
In drop shipping, the merchant doesn’t maintain any stock or inventory with themselves. Whenever the buyer orders the product from any of these drop shipping merchants, the merchant purchases the product from the third party and ships it directly to the customer. The merchant doesn’t handle or sees the product. Instead, he/she becomes the point of contact between the customer and the seller.
One of the main focuses of The E-commerce business is the order fulfillment process and that too on time. If you are not a manufacturer of the product then you need to find suppliers who can agree to list their products on your website. This process would help to lower down your initial investments that may include warehouses and humans for maintaining stocks and inventory. This method would fetch you lower profits as the product you are displaying on your website is not unique. Here choosing a proper supplier is important as it can pull more profits into your pocket.
How to find the right supplier for the drop shipping business?
Work with small to medium sized Companies
The small to medium sized manufacturers are not much focused on selling their products online, they usually have a less online presence. The focus of these manufacturers is solely in planning and creating the products. You need to research and find such manufacturers. While approaching these manufacturers your strategies should be convincing enough for them to gain confidence in you and advertise their product on your website.
How to execute the plans with these manufacturers:
- Research about the industry and the product these manufacturers are into and tell them your plan to sell the product.
- Offer your plan as well as pricing to them as such, so that they can benefit with this partnership.
- Give them the confidence that they will gain from this valuable partnership.
There may be chances that at the start of the business you would have less profit at your end, but as you would start selling the product, you can do minor changes of pricing, where you can benefit from the earnings.
Opt for wholesale and dropship directories:
Searching on Google for best drop shippers would probably be a bad idea, as it would fetch you more of a scam websites. It’s better to spend some money and opt for the directory service. This service would help you to find the reliable and best companies that you are trying to do business with.
Some of the best directories in the online market are:
- Worldwide brands: This is an American company based in Florida. The website WorldwideBrands.com helps to locate the best suppliers and manufacturers ranging from small to medium scale business. The results of their research and findings are listed in an online wholesale directory.
- Salehoo: This Company is based in New Zealand. The website of this company is salehoo.com. It offers one of the best international wholesale contacts. Approaching this website might be a good starting point for beginners.
- Alibaba: Many of us are aware of these companies. As it’s a Chinese based firm. It is considered as one of the largest retailers.
These are some of the methods where you can get a hold of a good supplier and manufacturer. But note that from wherever you are contacting the suppliers, you should work closely with them in order to avoid errors like out of stock issues, shipping issues and damaged products. Make sure that the supplier you are doing a partnership with is trustworthy and reliable. Test the supplier before by placing a dummy order and make sure he fulfills the entire requirement.