So you say you want to get in the drop shipping business? You have big ideas of setting up a site or selling through an online auction site to generate an entirely new income. While your ideas are not completely unattainable, drop shipping as a business takes a lot more work than what most people realize. Not only do you have to know how to be a good salesman, you have to know how to market items that you may know little about, and even more importantly, you have to do a lot of investigative research to find the right drop shipping suppliers.
To make sure your business venture is a successful one, whether you are looking for just a few extra bucks a month or a new business, it is a good idea to get to know drop shipping suppliers like the back of your hand. This comes down to two crucial elements.
Reasonable Baseline Prices
The most logical aspect of a potential drop shipping supplier is their pricing. You have to be able to make a profit on what they are selling or you are only wasting your time and effort. Therefore, the company must boast an inventory of items that is priced just below average.
It is not reasonable to expect that consumers will buy from you if your prices are way above what they would pay to get something anywhere else. The occasional fluke of a sale may happen, but it is unlikely to be the norm. Keep in mind that the mark-up you charge will not only have to be enough for a profit, but to cover expenses for operation as well.
Reasonable Shipping Times
When a customer places an order, they will be anxious to see their package arrive in the mail. One of the biggest challenges you can face as a drop shipper is finding a supplier that can offer a fast enough shipping time frame that it will not make you look bad to your customers.
This can be especially trying if you sell through online auction sites, which often require an item to be shipped within a certain amount of time or else you could face negative feedback. Look for specific outlines of how long an item will take to ship any tie you are considering a potential supplier and make sure your own sales listings reflect enough shipping and handling time.
With a little insight and some investigating, you can easily find a few good drop shipping suppliers. With a few good ones under your belt, building your income can happen quickly, but it is imperative that you continue to build a stable list of suppliers over time.