The drop shipping process saves your business the time and money that goes into storing, packaging and shipping products. It will also save you money, as suppliers are usually able to get better shipping rates than your small business. This process will minimize the risk of damage to the product as it spends less time in transit.
The risk associated with ordering and storing your product is reduced. You no longer have to worry about under-ordering or accumulating excess stock of a product that hasn’t sold well. The product is now ordered on demand rather than you having to predict supplies. This also leads to you being able to sell more products in your online store, as you no longer have to worry about storage of inventory.
Without the hassle of storage you can locate your business anywhere. All you need is an internet connection. The extra time and money you save will also give your business more flexibility.
Finding a Drop Shipper
The most obvious option is to search online for a drop shipper. Most drop shippers do not focus on their online marketing so your search may take a little longer than just tying it into Google. You may have to look at the later pages of your search not just the top hits. You also want to make your search broad so use more terms like “reseller”, “supplier”, “distributor” or “warehouse”.
If you don’t want to use up your time search for a drop shipper, you can use a paid directory. These websites provide you with a list of already known drop shippers. Make sure the directory is legitimate and not a scam before you pay.
To eliminate the risk of scam, you can other websites that are both directories and drop shippers themselves. However these will come at a higher price.
Choosing a Drop Shipper
There are many drop shippers that will each provide slightly different services. You must research your options well before make the decision. Here are some things to consider:
History of business – Do they have a good reputation of trustworthiness? What do others say about them?
Who is their shipping company?
Who are their other clients?
Do they offer customized packaging?
What is their return policy?
What will it cost you and what are the terms of payment?