Researching Your Drop Shipping Vendors

When you operate a drop shipping business without physical inventory stored at your location, it is of vital importance that you find reliable vendors to drop ship the goods you offer.

The wholesalers and distributors you use are essentially partners in your business. If they cannot perform to your specifications, then you may be losing customers who will never return based on one bad experience.

So how can you determine if a drop shipping vendor is going to be a good fit with your e-commerce business? Take some time to research the important factors, such as these.

Ask For References

Anyone can say that their company is rated number one in customer satisfaction, but few can truly back up that statement. Do not merely take the owner’s word for unsubstantiated claims; ask him or her to provide proof in the form of customer testimonials. If at all possible, obtain a phone number or email address so you can contact these customers directly.

If the vendor does business on eBay or Amazon, check out their satisfaction rating and read comments posted by customers. Generally these tend to be truthful; there is little point and no benefit for customers to stretch the truth.

Pricing And Credit Terms

The only way you are going to make money drop shipping goods directly from the vendor is if they offer your company excellent pricing and credit terms. Let’s face it, if your customer can buy the same item at the same price direct from the source, why would they choose to purchase it from your business? Always ask the vendor if they offer a wholesale pricing structure.

Along with product pricing, ask about credit terms. Set your business up as a wholesale account on credit. This not only makes less paperwork for you, it saves time when you only have to write one check a month – particularly if you are selling large volumes. A commercial account status also allows you to use less upfront capital, allowing you to wait until you’ve been paid before having to settle the bill with the distributor.

Support

Consider also the support options provided by the wholesaler or distributor. If you are in a bind and need a problem solved quickly, will someone be available to immediately handle it? Check into the various options you are given for support. A well-established drop shipping vendor should have no problem providing online, email, and telephone support, making it easy for you to find help whenever you need it.

Inquire if the vendor will assign a specific sales representative to your account. You will find that service is better when one person is responsible for providing it from start to finish – and this gives you a central point of contact for any issues that might crop up.

What will happen if you do experience a problem? Does the vendor have a reasonable return or exchange policy? How committed are they to customer satisfaction? What are their shipping terms? All of these are questions that need to be asked before you sign a contract with a wholesaler or distributor.

Remember that the drop shipping vendor you rely upon to provide goods to your customers is just as important as your own clients. Without a reliable drop-shipper, your online business could suffer. Don’t take the chance. Perform thorough research before agreeing to do business with any wholesaler or distributor.

Have a most outstanding day.

Sean Rasmussen
Aussie Internet Marketing
www.SeanSEO.com © 2008 - 2010