The ABC of Wholesale Drop Shipping

Wholesale Drop Shipping is a quick and easy way to get started in selling real products with low financial risk.

Avoid being Scammed

Drop Shipping seems to attract scammers. They will lure you with the promise of instant profits, quickly. In reality, they just want your money.

Remember - it's about Traffic to your website. If you can build traffic, you can make money. Traffic building takes planning, time and effort. If you are promised free traffic or the traffic side is not dealt with, the chances are it's a scam.

Avoid the Scams by reading the Top 3 Tips.

Don't part with your money to anyone until you have thoroughly checked them out.


What is Drop Shipping?

You sell products on your website but you do not keep the stock or send them out. In simple terms, this is the process:

1. Find a Drop Shipper and establish a working relationship with them (see below on how to do this).

2. Sell the products on your website. You decide what price you will charge.

3. When a customer places an order, you process the money.

4. You send the order to your Drop Shipper. They send the goods to your customer.

5. You pay the Drop Shipper the amount agreed when you met them in Step 1.

6. You handle all after-service with the customer.

Advantages

The biggest advantage is you can start to sell products with low risk and low financial commitment.

Over time, you will start to see which products sell best and for the most profit. You might decide to stock the products yourself and cut out the middle man!

You have control over the price you charge. You can make 10%, 20% or 30% on top of the Drop Shipper price. It is up to you. But check the competition!

What you will Need

1. Wholesale Drop Shippers are genuine businesses who only want to work with other credible business people. You will have to have a credible and genuine business to work with them. They normally avoid individuals. So you will need a company of some kind with a bank account etc.

2. You are also in charge of processing the money, so you will need to set up a credit card processing facility such as Paypal or Worldpay.

3. Clear selling policies and procedures that comply with the law. This will include (this list is not exhaustive)

  • Your full contact details
  • Delivery costs
  • Delivery timescales
  • Returns and complaints procedure
  • Order acknowledgement
  • Invoices and receipts

What Products?

If you have been following this website you can probably answer this yourself.

Only offer products which are relevant and add value to your visitors.

Only offer products which offer value for money.

Only offer products which come from a reliable drop shipper.

Finding a Wholesale Drop Shipper

Once you have decided on which products to offer, finding a drop shipper will be the next big challenge.

You may already know of a drop shipper through the business you are in.

If not, the last thing you should do is search Google for a drop shipper. It will come back with thousands of websites offering you just such a service - normally for a fee. The fee will be quite small, so you may be tempted to pay it. Don't!

Most of these websites are nothing more than a directory and most of the listings are from scammers. There is no-one checking the listings and anyone can make it on. They attract scammers.

Start with www.worldwidebrands.com. This is a directory which looks like any other. The difference is it is monitored by people. It is a safe way to find genuine wholesale drop shippers.

Research your products. Worldwidebarnds is aimed at the USA market but about 30% of the drop shippers will deliver internationally.

Once you have identified a drop shipper who sells what you are looking for, do some general due diligence. Test them out - order something and see what happens. Who else do they supply - talk to these customers and get some feedback. Search online to see what others have said - in the UK, try the www.dropshipforum.co.uk.

When you are happy they are a genuine company with a good reputation, you can contact them. Now you need to get lots of commercial information about their terms of service, what they will do for you, how much will they charge etc. You need to be very clear about what the obligations are of each company.

You will normally sign a contract putting these obligations in writing.

I recommend you do a small trial to begin with. Sell just a couple of products to test out the whole system. Iron out any problems early on before you start to sell a fuller product range.

Making Money

There are a couple of things to consider which can have an impact on your income.

1. Remember to accurately add on and charge for postage. Prices are dependent on the weight and size of the package so make sure you know this information. Work out an average price for sending items and charge a flat rate. Monitor this over time so that you can adjust it if you discover you are charging too much or not enough.

2. Returns - you handle the aftercare and returns. This will mean potentially having to organise and paying for the item to be collected and returned to the drop shipper. The drop shipper is responsible for exchanging or repairing the goods. However, you need to factor into your costs the price of doing this. Remember that if you want repeat business and a good reputation, handle all complaints and returns quickly and professionally.

Using a Wholesale drop shipper is a good way to start selling hard goods on your website. Do your homework and always provide good value for your customers.