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For your online sales business to flourish, it is very important to have the right drop shipper backing you up. He/she should be the one keeping up his part of the deal, since once you place an order to him, you effectively lose control over the deal and his performance will determine whether you get bouquets or brickbats from your customers. So ask these questions to your drop shipper before tying up with him.
Is he an actual Drop Shipper or just a middleman?
Since he will always claim to be a drop shipper, it will be wise to cross check this fact by getting in touch with the actual manufacturer and confirming whether he actually is their distributor or not.
Are his rates competitive?
Once you get his product list and price list, then you can check out his prices with the retail prices by visiting sites such as eBay or even by visiting retail brick and mortar stores. That way, you can come to a conclusion as to whether you can include your profit margin on his price and make some money when you sell the product.
Does he have a minimum value or minimum quantity order?
Some drop shippers will ship only if they receive a minimum quantity or minimum value order. If your shipper needs a minimum order, then search for another one since you will have to wait for more orders before you can place your order to the shipper, thereby delaying your delivery time to the first customer.
What are his shipping and ‘other’ charges?
Ask him about who will bear the shipping charges. Also ask if he charges any thing extra after the order is placed. Some shippers might charge ‘handling’ charges or some other charge by adding any fancy name to that charge. This will decrease your profit margin. Normally, your customer pays shipping charges, but it all depends on the way you market the stock.
Will he stick your company details on the product?
You will have to ask your drop shipper if he is ready to stick your company sticker on the products. That way, the customer will think that you have dispatched the product. This method also provides publicity for your company. He should be ready to remain anonymous as far as your customer is concerned.
Will you get credit from him?
Ask your drop shipper if he can give you credit. He can bill you on a fortnightly or monthly basis so that it provides a cushion for your business. He should also be ready to send your invoice along with the product.
Does he offer a guarantee on his products?
He should be able to provide a guarantee/warranty on his products and should also be ready to take back sales-returns from unsatisfied customers. In case he does not, then you will be the one to suffer, since all those products will be on your head.
So ask these questions without any hesitation, since even one negative answer will sink your reputation and money. Hire the drop shipper only if you get convincing answers from him.
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