Monday, July 6, 2015
Dropship Business Tips
A simple internet search will reveal wholesale dropship suppliers ranging from dog clothing to electronics, so the first thing you'll want to do is determine the type of online business you want to have. Once you have figured that out, here are a few key questions that you should ask:
Is there a monthly or annual fee?
Some wholesale dropship suppliers will charge a recurring fee that could range from $99 per year to $19.99 per month (approximately $240 per year). This may not sound too expensive but remember you will pay that fee even if you don't generate any sales. If you already have a successful online business and you are generating plenty of web traffic sales, then this fee may not bother you. However, if you are a new online business with an unproven track record, then this fee could impact your bottom line. My advice-- stay clear of the recurring fees until your web sales are consistent.
What is the return policy?
Typically, online sales will generate a fair amount of returns and exchanges. You need to make sure that your company's return policy is close to the same as your wholesale dropship supplier. For instance, if you accept exchanges after 21 days but your supplier only accepts exchanges after 14 days, you could find yourself with a problem. Likewise, there are some wholesale dropship suppliers out there that will not accept returns or exchanges at all on dropshipped items. You have to decide if you are willing to do business with those companies.
Is customer service accessible?
If your supplier doesn't return your phone calls or emails in a timely manner when you are just starting out and trying to gather information, then what will you do once your online business is up and running and you have a customer with a question that only the supplier can answer? Their poor customer service will make YOU look bad with your customer.
Is there a monthly or annual fee?
Some wholesale dropship suppliers will charge a recurring fee that could range from $99 per year to $19.99 per month (approximately $240 per year). This may not sound too expensive but remember you will pay that fee even if you don't generate any sales. If you already have a successful online business and you are generating plenty of web traffic sales, then this fee may not bother you. However, if you are a new online business with an unproven track record, then this fee could impact your bottom line. My advice-- stay clear of the recurring fees until your web sales are consistent.
What is the return policy?
Typically, online sales will generate a fair amount of returns and exchanges. You need to make sure that your company's return policy is close to the same as your wholesale dropship supplier. For instance, if you accept exchanges after 21 days but your supplier only accepts exchanges after 14 days, you could find yourself with a problem. Likewise, there are some wholesale dropship suppliers out there that will not accept returns or exchanges at all on dropshipped items. You have to decide if you are willing to do business with those companies.
Is customer service accessible?
If your supplier doesn't return your phone calls or emails in a timely manner when you are just starting out and trying to gather information, then what will you do once your online business is up and running and you have a customer with a question that only the supplier can answer? Their poor customer service will make YOU look bad with your customer.
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