10 Tips for a Successful Dropshipping Business


Dropshipping is an excellent service that has allowed numerous entrepreneurs to expand their businesses and obtain extensive sales without the hassle of handling merchandise and owning a large warehouse. There are many problems, however, that can be associated with dropshipping, especially if you choose the wrong dropshipping company. The following ten tips will help you make the best drop shipping decisions for your business.

1. Reputation

It’s important that the company you use for your dropshipping has an excellent reputation. You can check the reputation of your dropshipping company through the Better Business Bureau. You should look for consumer complaints and issues that would be difficult for your company to deal with. Avoid any company with overwhelmingly negative information.

2. Notify Buyers

It’s important that you notify your buyers that the item they are purchasing is not in your possession. Buyers who believe that you are personally shipping the item may get irritated with you about shipping times or other shipping related issues.

3. Tracking Numbers

It’s important to obtain tracking numbers from your dropshipping company. This will allow you to track orders that have been lost or delayed.

4. Delivery Time

It’s important that you contact your dropshipping company about the length of time it takes for them to ship an order. This information is valuable to your client and should be as accurate as possible. Accurate delivery time information will avoid any confusion or frustration related to the item’s delivery.

5. Communication

Keep the lines of communication between you and the customer as open as possible. Be sure to promptly respond to any shipping issues in order to avoid customer frustration.

6. Dropshipping Fees

Legitimate dropshipping companies do not charge a fee. If you are considering a company that asks for an upfront fee to access their products, the company is most likely a scam. The best companies will not attempt to charge you for product access or any other initial fees.

7. Multiple Companies

In order to get the best deals, it may be necessary to use several different dropshipping companies. You will find that certain products are cheaper at certain dropshipping companies and not at others. It will be beneficial to your business to use the best deals at each company.

8. Warranties

If your business sells products of great value, you may want to offer warranties or insurance. Some dropshipping companies will make warranties available to you and your customers. This is an excellent idea because it can protect you from customer dissatisfaction in the case that a product is delivered damaged or broken.

9. Sample Products

Before allowing the dropshipping company to handle your customers’ orders, choose a few diverse products and have them shipped to yourself. This will allow you to inspect the quality of the product, the speed of delivery, and the ability of the dropshipping company.

10. Start Slow

It’s important to start slow when you first get into dropshipping. While there are many legitimate dropshipping companies, there are also many companies that are scams. If a deal seems too good to be true, than it probably is. Do not use a shady company in an attempt to get a better deal, this will usually come back to haunt you and can be very costly for your company. Start slow and build up to larger orders as you become comfortable with your dropshipping service.

Dropshipping is an exciting service that can propel your business forward and significantly increase the number of sales your business can handle. Unfortunately, while dropshipping is an excellent opportunity for success, it also leaves a lot of room for failure. Following the tips above should help you make decisions about your dropshipping service that will allow you to enjoy the largest amount of success.

  • http://www.murlu.com Murlu

    I’d definitely make sure you get a sample product if possible to check the quality.

    Another thing to consider is if the dropshipping company correctly labels your shipment as your own.

    Some dropshipping companies are sometimes lazy or deceptive by leaving their own stickers which gives the person information about the dropshipping company.

    You want to make sure your branding is followed from the website to the delivery.
    .-= Murlu´s last blog post: How To Use Twitter To Find New Blog Post Ideas =-.

  • http://www.venturemixx.com Tony Ruiz

    Great breakdown… I’ve worked with a drop-shipper with a project I was working on and we’ve noticed its more effective if we attached the skew number to the items we have on display…it helps when mass orders come in and when reporting to our drop-shipper.

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  • Dennis Edell | Direct Sales Marketing

    Being on both sides of the coin, these are all dead on tips, nice work.

    Murlu raises a GREAT point as well. Always always always make sure YOUR label is on every drop-shipped package.
    .-= Dennis Edell | Direct Sales Marketing´s last blog post: UPDATED: Aweber Affiliate Link Grab Contest! – This Is It!! =-.

  • CJ

    Great tips here,
    Dropshipping is definitely a hard business to get started in though, if you want to make a profit. The best thing to do, is get a good feedback rating on ebay, by selling a bunch of household items first.

    Once your feedback rating is high enough and you have more of a name for yourself, you’ll be able to get more for the products you sell and that will obviously lead to a greater chance of you making a profit.

    CJ

  • http://Millionaireat24.com Aaron Darko

    Definitely agree CJ.

    Getting dropshippers can be very profitable indeed. I am interviewing an 18 year old who was one of the Young Entrepreneur Scholarship winners at Yanik Silvers underground online seminar in a couple weeks. He has a dropshipping business and he does it big! So big that he’s bought himself a porsche. So everyone brace yourselves because he’s gonna be revealing some big tips!

    Dropshipping companies tend to mark up the price a little so its not as cheap as wholesale so the profits are smaller. The thing I love about it is that you dont need any money to get started in it. However good dropshippers are hard to find.

    http://worldwidebrands.com is a good one
    .-= Aaron Darko´s last blog post: 44 Stolen Life Tips From Michael Dalton Johnson =-.

  • Daniel D

    I am starting to setup my own web storefront utilizing dropshippers to deliver my products. I am so overwhelmed with the list of all drop shippers and dont know which one to take. I am conidering Worldwide Brands & Doba but I dont have money to start it out since I am just testing the markets. Using LightInTheBox is quite risky becuase of all the negative reviews – I dont trust the chinese either specially when doing business with them. What dropshipper can you recommend for startups?

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    Drop shipping can be a very simple and effective way to get involved in ecommerce.Many established online merchants are now turning to dropshipping companies as a means of minimizing stock on hand, decreasing overall shipping costs and cutting down on delivery times to customers.Your article is of best help.