| Drop Shippers, the manufacturers or | | | | decrease.Although manufacturers or direct |
| distributors who are willing to ship their | | | | distributors are large companies, some of |
| products to your customers, bring a powerful | | | | them may not have an established website. You |
| benefit to ecommerce. Online businesses that | | | | can still contact them by calling them or |
| engage in the wholesale-retail trade can cut | | | | sending them a mail. I would recommend that |
| down on all the hassles of shipping their | | | | you call them personally so that there is |
| products by simply establishing business | | | | more room for negotiations, and also a warmer |
| relationships with drop shippers, and using | | | | 'touch' to the business relationship.Before |
| them as part of their business model. This | | | | calling your drop shipper directly, you will |
| article will cover the aspects of selecting a | | | | need to establish your business as a legal |
| reliable drop shipper, the process of setting | | | | entity before starting any business trading. |
| up with drop shippers, and also some of the | | | | Registering your business with the government |
| common problems that may arise from working | | | | involves getting your Tax ID number, and also |
| with drop shippers.Selecting a reliable drop | | | | your official business name. You can contact |
| shipper is a very crucial element in your | | | | your state's administration and find out how |
| drop shipping business. If the drop shipper | | | | to register your business. U.S. citizens can |
| you work with is honest and reputable, you | | | | get a lot of resources and information on |
| can consider yourself to have won half the | | | | registering a business at your business |
| battle in the order fulfillment process. | | | | registration is done, you can start |
| Although this may not be true in some | | | | contacting your drop shipper and negotiating |
| circumstances, the direct manufacturers and | | | | with them. There are several important issues |
| the upper level distributors are usually more | | | | that you have to discuss with them:1) |
| reliable than the smaller distributors. | | | | Shipping. Most of the companies outsource the |
| Manufacturers usually produce their products | | | | delivery of their products to a delivery |
| in large quantities, and require higher | | | | service like FedEx or UPS. Once you email a |
| capital to finance their companies. More | | | | customer order to your drop shipper, you will |
| often than not, these businesses are reliable | | | | need to be able to keep track of the status |
| companies, because only businesses with a | | | | of the delivery. If any customer were to |
| strong track record have the ability to | | | | query you on when the goods are to arrive, |
| secure such high capital to finance their | | | | you will then be able to account for them |
| manufacturing process.Also, first and second | | | | fully. Established delivery services like |
| tier distributors are usually reputable as | | | | FedEx offer online real-time tracking |
| they are bigger and more established, since | | | | services. With the tracking numbers issued by |
| their distribution spans a wider region. This | | | | the services, you can log on to the internet |
| is in contrast with lower tier distributors | | | | to track the delivery status of the goods. |
| or middlemen, who make their profit simply by | | | | Alternatively, you can choose to include the |
| marking up the prices. Some low-tier | | | | tracking number in the email autoresponders |
| distributors may be fly-by-night | | | | sent to your customers, so that they can log |
| organizations or businesses that may shut | | | | on to the FedEx or UPS website to track the |
| down easily due to their small size. Hence, | | | | shipment.You would also need to find out what |
| whenever possible, you should look for the | | | | is the delivery service that your drop |
| direct manufacturers or distributors of the | | | | shipper uses, and calculate the shipping |
| products and ask if they offer drop shipping | | | | costs. Shipping costs within a country should |
| services, due to their reliability. Direct | | | | be significantly lower than international |
| manufacturers or distributors should also be | | | | shipping, thus it is advisable to select a |
| your first choice because their prices have | | | | drop shipper based in the country where most |
| not been marked-up by any middlemen, and thus | | | | of your customers are. This not only cuts |
| the higher your profits can go.(This is not | | | | down a lot on shipping costs, it will also |
| to say that smaller distributors are | | | | reduce the hassles of international shipping |
| unreliable, there are also numerous honest | | | | like customs security and slow delivery time. |
| distributors out there with established track | | | | Additionally, lower shipping costs would |
| records.)Simply phrased, the drop shipping | | | | encourage more purchases from your customers, |
| process is as such: You set up a website | | | | as compared to cases of international |
| catalogue selling the goods that you want to | | | | shipping where the high shipping costs can |
| sell. After a customer has placed an order on | | | | sometimes account for up to half the price of |
| your website, you can call or email your drop | | | | the goods, deterring them from making |
| shipper to deliver the specific quantity of | | | | purchases.Usually, the logistics department |
| products to your customer. Your drop shipper | | | | of the drop shipper is willing to label their |
| will then ship the products to the mailing | | | | products with your company name and logo, so |
| address as specified on the order form.When | | | | that it will appear as if you were the one |
| selecting the products you want to sell, you | | | | who shipped the products to your customers.2) |
| have to also consider the shipping costs | | | | The wholesale price of their products. |
| involved. If your drop shipper and your | | | | Although this would not vary much among |
| customer base are located in different | | | | manufacturers of the same products, some |
| countries, you should definitely sell | | | | manufacturers do offer a slightly lower |
| products which cost in the price range of | | | | wholesale price than other suppliers for the |
| hundreds or thousands of dollars, so that the | | | | same product quality. It would pay off much |
| higher international shipping fee would | | | | in the long run if you scout around for |
| account for a smaller proportion of the | | | | wholesalers with lower price, as you would |
| retail price of the product. If your drop | | | | make a bigger profit on each sale. You can |
| shipper and your customer base are located in | | | | also negotiate among several wholesalers |
| the same country, it would then be feasible | | | | first because some wholesalers allow greater |
| to sell products that are cheaper as the | | | | room for negotiation than others. If your |
| shipping costs are much lower.So how should | | | | online businesses can have a guarantee of |
| you go about looking for your product | | | | selling a large quantity of products, you |
| suppliers? The first approach you can take is | | | | should be able to get a lower price for them, |
| through the search engines. You can start off | | | | similar to the discount given for bulk |
| by searching for 'Manufacturers directory', | | | | purchases.3) Credit and Billing. You would |
| 'Wholesalers Directory', or 'Drop Shippers | | | | have to make clear with your drop shipper how |
| Directory', and look through the websites | | | | you are going to pay them, whether it is by |
| containing the lists of such manufacturers. | | | | credit cards or by checks. Will the payment |
| Alternatively, you can type your product | | | | be made immediately after each purchase of |
| keyword together with the word 'wholesale'. | | | | goods, or will it be paid after a certain |
| For example, if you want to sell wooden | | | | minimum quantity of goods is purchased, or |
| carvings, you may want to try the term | | | | will it be paid at the end of each month? |
| 'wholesale wooden carvings' and take note of | | | | These details may appear trivial, but it is |
| the websites offering wooden carvings at a | | | | important to clarify all this at the start to |
| wholesale price. After which, you can email | | | | prevent disputes later.4) Product Return |
| or call the manufacturer and check if they | | | | Requests. Because your customers expect their |
| offer drop shipping arrangements. Or, if they | | | | products to be of a pretty high standard, |
| offer the function to sign up for their drop | | | | your drop shipper will need to guarantee you |
| shipping service on their website, you can | | | | a certain standard of product quality, and be |
| immediately sign up for it, but only after | | | | willing to replace any defective products. Be |
| verifying that they have a record of | | | | wary of drop shippers that do not offer these |
| excellent and ethical service. (You can do | | | | guarantees! If it turns out that many of |
| this the easy way by browsing their website. | | | | their products are defective, then your |
| Most of them will display the awards or | | | | reputation is at stake, and you would end up |
| commendations they achieved for excellence | | | | with many useless defective products. Clarify |
| and reliability.) A good example of a | | | | the process of returning defective products. |
| wholesaler that offers drop shipping | | | | You may want your customers to return the |
| registration on their website is The drop | | | | products directly to your drop shipper, |
| shipping service can be found on the left | | | | instead of sending the products first to you, |
| navigation bar under 'Wholesalers'.Remember | | | | then from you to the drop shipper.An |
| to target manufacturers as your first choice. | | | | agreement with your drop shipper on their |
| You can find a directory of manufacturers and | | | | refund policy should be finalized. If they |
| distributors at If you cannot find any | | | | do, you need to determine whether the funds |
| manufacturer offering drop shipping services, | | | | are to be transferred first to you or |
| you should then target the direct | | | | directly to the drop shipper.In conclusion, |
| distributors one level below the | | | | the process of establishing a business |
| manufacturers. Their prices would have only | | | | relationship with a drop shipper can be quite |
| been marked-up once, and hence the lower your | | | | complicated. However, if many of the details |
| cost. You can locate these distributors by | | | | are clarified right before any transactions |
| getting the manufacturer to recommend some of | | | | are made, your online business should be able |
| the more reliable ones. If none of these | | | | to handle all the hassles smoothly.*You are |
| first-tier distributors offer drop shipping, | | | | welcome to reprint this article as long as |
| you then move on to the second-tier, and so | | | | you include the Author's resource box with |
| on. However, it is not advisable to go on to | | | | the article. |
| the lower tiers, as your profits will | | | | |