Do you own drop shipping companies or e-commerce stores?
Drop shipping, or buying from a wholesaler who will then ship the product directly to a customer, is a popular online business. Plenty of people are getting into it because you can work from home and there's no need to keep inventory yourself. It also doesn't require much startup capital.
Choosing which companies to work with can be a huge challenge, however. The wrong company can lead to a headache, unsatisfied customers and a loss of revenue.
If you've ever wondered how to choose the best drop shipping companies to work with, here's everything you need to know.
1. Identify What You Need from the Companies
First of all, it's worth taking time out to identify what features you need.
A popular way to start choosing drop shipping companies is by product. Get an idea of what interests you and contact manufacturers of the item. They should be able to direct you to verified distributors.
You can try looking with a search engine, but you'll get lots of results to comb through. The more time you spend on research the less time you'll be spending on getting the business up and running.
Keep in mind that the drop shipping business is full of people looking to make fast money. There are instances where people will pose as a company to attempt to scam you. There's no need to be discouraged by this, however.
Use caution and ask for their legal credentials. Make contact with multiple representatives of the company. Remember though that all companies may not want to drop ship so it may take time to find one or more you can work with.
2. Pick a Niche That You Know Well
Among the factors first-timers should consider when starting to work with drop shipping companies is finding their niche. This philosophy can be summed up simply: sell what you know! Your expertise in specific areas can turn out to be extremely valuable for your new business.
The benefits of selling something you're an expert on are numerous.
Firstly, it will take the guesswork out of choosing a product to begin with. Your branding and presentation on your site will be a cut above the competition. The level of customer service you provide will also be top-notch.
Again, so many drop shippers see the business as a get rich quick scheme. If you want your business to last, don't be one of these people. Sell products you connect to emotionally.
3. Have a Sample of Your Product Before You Start Selling
Always work with drop shipping companies that will provide you with a product sample.
This serves as a trial run for your business. Order it through your online store and make sure the process is seamless. If there are any hiccups, make the necessary adjustments.
You can also use product samples for photos for the site. You can style them much better than a supplier would. Also, actually having the product in hand means you can write a better product description.
If you really want to take your promotional material to the next level, use the sample in a video. Or use the sample in an advertisement. It's an all-rounder in terms of marketing.
For sellers who have multiple items, start with samples of featured products first. That way you can test if you get a good return when using them for marketing.
4. Create a Good Relationship with Your Supplier
Building a relationship is valuable in any business area, and drop shipping is no exception. Numerous details have to be ironed out for both the drop shipping companies and sellers to see profits.
These include the management of product content and data, inventory, updates, and how a company receives order information. Some other areas of the relationship are determining payment for sales and when it happens. Not to mention choosing whose carrier account is used for the shipping of items.
And lastly, product returns is another issue that needs to be worked out in detail.
Drop shipping is a complicated business model that necessitates a smooth flow of data back and forth. Remember that the relationship between you and the drop shipping company is key to your success. Try to enforce a policy of efficient communication, organization, and transparency for both parties.
5. Get a Reliable Automated Solution
A lot of drop shipping companies service more than one seller. And you will probably be dealing with more than one company to get the products you want.
Take care of the data exchange between you and drop shipping companies by using a digital solution tailored to your business. The platforms available vary in their features but have one thing in common, automation. By choosing a drop shipping platform you reduce your workload and can start earning faster.
Research the options available and match them to the needs of your business. Keep in mind the features you should look for when choosing a platform. These include the ability to import products, automatic pricing, product image importation and the ability to manage multiple stores in one place.
The aim here is to have your store run like a well-oiled machine. The best platforms allow you to do that. Used properly, drop shipping platforms mean you can easily scale upwards and become a bigger, more profitable business.
Choosing Your Drop Shipping Companies
Hopefully, you now have the tools you need to choose the best drop shipping companies to work with.
Drop shipping has low upfront costs and there's no investment in inventory needed. You can potentially start offering thousands of products to your customers today.
Do you want to get started on automating your Shopify drop shipping store? We're here to help. Get in touch to find out how.
