How to Find Your Dream Dropshipping Wholesalers A Comprehensive Guide
Finding dropshippers is not an easy task. It involves hours of research, communication, and comparison to find true hidden gems that may not easily show up in the search engines. But don`t worry. We prepared a step by step guide for you to help you with finding your ideal drop shipper.
Dropshipping wholesalers are companies that buy directly from the manufacturer and deliver their products to the retailer’s customers. Drop shipping companies will offer products at real wholesale prices. Then, the retailer might list their products online with retail prices depending on the availability of the product in drop shipping supplier’s products.
Dropshipping is great because it eliminates the need to keep a physical inventory. It relieves you from the entire physical process of stocking, organizing, packaging, and shipping. Because dropshippers are often large businesses shipping many packages each day, they often have negotiated shipping rates that are lower than the ones your small or medium business can get.
An Ultimate Guide for Finding Your Dream Dropshipper
1. Choose What Category You Want to Sell In
There are almost no limits to what category of products you want to sell using the drop shipping method. However, some suppliers will focus on one category while others focus on others. So, if you want to be an online retailer that sells in almost all categories, you might want to think about dealing with multiple drop shipping suppliers.
Plan Ahead and Do Market Research
Do not make the mistake of opening an online store and signing up for memberships with suppliers BEFORE you choose the kind of products you want to sell. Planning ahead and doing a market research is very important in drop shipping business.
Your decision about what category to sell should consider current trends, future trends, consumer demands, and perhaps most importantly, with what kind of products and sales tactics you can create a different online store that stays ahead of your competition. After all, you might be selling the same products everyone else is selling but it is up to you excel in some ways. You must be able to offer low prices, fast shipping (this just really depends on the suppliers you eventually pick), high-quality product images and more.
Why Certain Categories Might Be Better for You
However, some categories have certain advantages over the others. Let`s compare natural, organic products with clothing category. Selling brand name natural organic products have much lower return rates. While there are constant problems with clothing such as wrong size, wrong fit etc, there are no reasons for customers to return natural, organic products as long as their package arrives in good condition. If they are content with shipping times, pricing, and the condition of the product, not only they will not return their products but also they will keep buying from you. This is so precious because there is nothing more expensive than having to acquire new customers all the time.
Check out my previous article for more information about selling natural, organic products online.
2. Check if They Have Real Wholesale Prices
Most reliable drop shippers charge monthly or annual fees so that they can drop ship for you. Those suppliers whose services free often make their profits by adding overhead costs to their wholesale prices. Then, they stop being real wholesale prices, which cost the retailer a lot of money in the long run as they have to sell with very little profit margins. For this reason, it is important to check and compare wholesale prices that your potential dropshipper have to offer.
3. Make Sure They Have Up-to-Date Inventory Data
It is a retailers nightmare to oversell. Imagine having to explain to a customer why the purchase they made cannot be delivered. To avoid this, you must be able to have access to your supplier`s inventory data. A good dropshipping wholesaler will be able to provide you with inventory data that updates multiple times throughout the day.
This is really important because overselling usually means losing the customer forever. Consider my earlier point that acquiring new customers is very expensive. In this case, losing repeat business is a bitter blow to your finances.
As well as inventory data, a good drop ship supplier should be able to provide you with high-resolution images of the products they stock. Its a good idea to make sure to communicate with your potential supplier if they are able to provide you with the latest data.
4. Shipping is Half of Dropshipping
Shipping is immensely important. Shipping times, cost, and even shipping techniques are crucial. Studies prove to fast lead and transit times directly results in higher profit and consumer satisfaction. This is obviously not a shocker. Customers really care about receiving their orders in a timely fashion.Besides, sometimes the items they purchased are very time sensitive. This is especially the case in holiday seasons. Customers purchases gifts that should arrive before the holidays. That`s why it is important to choose a drop ship supplier that can ship fast with good order visibility.
Make sure your potential supplier has reasonable negotiated shipping costs with carriers. As the shipping cost will be redirected to you, it is important that they are not very costly.
If you are considering to sell perishable or frozen items, make sure they can do that for you. If so, ask them how they do it because it really matters. While some dropshippers have innovative solutions to shipping frozen, others might have fallen behind. For instance, dry ice shipping makes the package much heavier and it is considered to be hazardous for air travel. On the other hand, certain innovative shipment methods allow the products to stay frozen for up to three days. At the same time, it does not make the package as heavy as dry ice shipping method.
5. Communicate with Your Potential Dropshipping Wholesaler Before Making a Commitment
Communication is key! Make sure to discuss any of your concerns and questions with your potential supplier before you make any decision. A good supplier will be available to you through live chat or other types of communication. This is not a light decision to make. So, make sure you spare enough time to clear your concerns by talking to them.
Be proactive. You need to be able to identify any potential problems that you may face during your drop shipping business. Ask your potential supplier how they would be able to deal with such problems. If the answer satisfies you, they are likely to be your dream dropshipping wholesaler!
Absolutely avoid any drop shipping supplier that is hard to communicate with. They must make themselves available for your satisfaction. If you cannot reach out to them easily, that`s probably a no-no.
Learn more about dropshipping.