DROP SHIPPING 101
I’m Back! I have been away for a while enjoying my retirement in Thailand and working on my tan.
I still do a lot of affiliate marketing and it is going well, but I have been getting a whole lot of questions about topics like drop shipping , finding suppliers, and direct importing. I will be doing a series about these topics and will also offering! a subscription service for more in depth information and direct help. Stay tuned!
So you have heard what a great, easy way it is to make money by drop shipping. This is all true if, and this is a big if, you can find quality unique products, and drop shipping suppliers to buy from.
Here are a few basic steps to get started.
- You are the retailer. You sell product on a website,or on an ecommerce platform like eBay, Amazon, or other similar method. You might even have a brick and mortar store.
- The supplier is the company you buy from. If they drop ship, they will inventory, package, and ship the product for you. They could be an importer, distributor, wholesale company, another retailer, or even possible a manufacturer. If you buy from another online retailer you must do your homework and select items on sale, on closeout, or other low cost situations. Importers, distributors, and wholesaler’s often drop ship, but not all do. You must remember, if you drop ship you will pay extra for that service.Manufacturers will rarely drop ship unless they are set up to handle small orders, or if the item is large, hard to ship, or expensive.
- If you drop ship you must make sure the drop shipping company only puts your company name and address on the package and on the packing list. They must keep you informed about shipping times, tracking numbers, and must ship promptly to keep your customers happy. You will most likely be responsible for notifying your customers about shipping time and sending them tracking numbers. You will often have to handle returns or customer service problems. If your supplier runs out of merchandise they must inform you quickly so you can stop selling until they get new merchandise in stock. They must let you know if prices change so you can reprice your sales items.
- Manufacturers generally do not warehouse merchandise for you, especially overseas factories. They get an order from their customers, buy the component parts, assemble the order, and ship in large quantity. Usually the larger the order size the more manufacturers like you. It gives them production efficiency to set up their production line once, make the order and ship. They normally do some level of quality control but final inspection will be your responsibility. You can hire services to do this for you.
Stay tuned, there will be more great tips and info to follow.