Business involves making payments. One payment comes from the customer another payment going to the wholesaler or dropshipper. Ask the dropshipper what form of payment he is accepting. This can be done online like through PayPal. Ideally the way your customer pays you should also by the way you pay your supplier. This just makes things easier with fund management. There are the fees associated with using payment facilities. Make sure you factor in this cost in your business and in your pricing of the goods. Payments via telegraphic transfer or through Western Union may not offer the kind of customer protection you need. If you use this specially with overseas suppliers make sure you’ve had a long relationship with them and trust them.

If delivery of the goods to the customer is delayed, it could lead to a refund. We do not want that. You should therefore pointedly ask your supplier their inventory level and how fast they deliver.  It may be the case that you are actually dealing with a middle man who only orders stocks when it meets his own minimum requirements.  This could be disastrous at your end. So know who you are dealing with.

There’s a known practice of dropshippers charging those who deal with them registration and subscription fees for access to their list of products. Some of these suppliers will give you limited access or send you a sample price list. You can try this to see their products. For starters a short membership period may suffice so you can try them out first. Whatever contract you enter into read it carefully to make sure you are not stuck with a long minimum period which you may not like.

Use these pointers when you get into the world of dropshipping. Happy sales!

Finding the right dropshippers means doing diligent searching. The best would be by recommendations from people who already had experience with them. You will always find the “best” dropshippers advertising in the internet.  There are sites offering lists of dropshippers some are genuine some may only be compiled by the supplier himself showing only information that would lead to his products. Make inquires and ask questions.

If you’ve found a supplier that has the merchandise you are looking for the first thing to zero in on is their contact information.  We all want business including the supplier right? So we all want to be known. The supplier must therefore have a clear business address unless he’s trying to hide something. There should be a phone contact number, an actual physical location address, and an email address. Call to see if someone answers the phone and see how fast they answer. Use their email address and see how long it takes them to respond. A well run business should be able to response in a reasonable amount of time and answer in a professional manner.  Incorrect or no contact information serves as a red flag.

In a previous blog it was mentioned that you must communicate clearly with your dropshipper. Another way of putting it is that the terms and conditions of your business relationship should be clearly spelled out. What happens if the goods are not delivered on time? What if the goods delivered have defects or does not work? Make sure to clear this up. Remember the customer is dealing with you and not the supplier. So when something goes wrong the customer will not blame the supplier but you.  Clear up your terms and conditions with the supplier so you can properly tailor your terms and conditions with your customers. As mentioned in a previous post, there are also applicable laws when delivering goods.

These are some pointers to remember when choosing and dealing with dropshippers.

It is important to add fresh content.  Just look at some of those old downtown stores. They look old and uninviting because there’s nothing new about how the look. They may have some loyal customers but that’s about it.

While you do want to have something fresh with your website every so often, make sure that you don’t lose your brand or your message. You may be making changes so drastically that customers may no longer recognize your website. So take care with how you add new content.

The internet is a dynamic infrastructure and just like a moving car that needs its bolts tightened every now and then, check to see if all your links are functioning properly. Don’t think that all the links are unbroken.  Check and fix those that are. It’s bad image (and bad business) on your part if a client clicks a link and it doesn’t work. This could mean lost orders.

Check how fast your web pages are loading. Are they loading fast enough? Speed kills as they say, in this case though slow speed is the killer. If your speed slows down you may lose traffic and customers. People go to the internet and order online so they can do things faster instead of having to go out to a store. If your web pages are not loading fast enough customers may become impatient or lose interest. Do you want to go to a website that loads slowly? The answer is no.

In summary website building is an ongoing process, have fresh content but don’t lose your brand, check your links, and make sure your web page loading is up to speed.  Happy sales!

While it is physically less laborious to shop online, in the real world the person can actually see the goods. If a person needs some information about a product he can ask the store personnel. If a customer wants to know where the women’s section is, a store employee can point the right direction.

In this regard there seems to be a need to replicate this kind of an environment. So a client can have a better idea of what product looks like, a clear picture is encouraged if possible or appropriate. There should be also some description about the product.

Yet you must also not overdo it. Since the person is searching for the product he must already have some prior knowledge about it. Just have enough information on the product; too much information maybe too much of a read for the customer.

While we also want to advertise our other products, make sure there isn’t too much advertisement either that makes the particular webpage confusing or too cluttered. Just imagine yourself in an actual store quietly examining a product, then five or more sales ladies try to get your attention hawking different items. You’d be distracted and even flustered and may wind up not buying anything. The same thing can happen in your website.

Make sure your website is easy to navigate and customers find it easy to get back to the main page or other pages. There should also be a FAQ section that can be easily reached. Contact information must also be easily seen.

These are some of the issues you should look into when building or when improving your website.

You can do drop shiping from your own home. It has more to do with being able to advertise well and get costumers to pay for a product to be delivered. You’ll get paid first then the product gets delivered. Payment to the wholesaler/dropshipper can be made after the delivery is done. With this arrange your capital resource need not be so large.

Another pro or advantage to dropshipping is if there is a downturn and business is slow or stops altogether; you will not be stuck with unsold inventory. Inventory is money that’s not earning interest and the product may even deteriorate in value.  If you have a delivery service you could wind up with an underutilized or unused delivery vehicle and you may also have to lay off the delivery man. With dropshipping you’re putting less of your capital at risk.

As to the cons or disadvantages, the Achilles heel of dropshipping is you do not have control of the merchandise and the delivery process. You will not be inspecting the quality of the goods as they are to be delivered so they may not be up to standard. Delivery may also not be done on time. This all leads to bad business and it could be difficult to recover from.

Another thing to watch out for is if you’re dropshipper is too enterprising for your own good. He may eventually take the customers away from you since he is the one in direct contact with them. You may never know if he is inserting advertising or giving flyers to your customer for purposes other than your own.  This can be mitigated with your selection and relationship with the dropshipper.

Just like any business dropshipping has its pros and cons. The challenge is to take advantage of the pros and learn how to mitigate the cons.

Treat your customers with respect and in a professional manner. Try to resolve quickly their concerns. The faster the issue is resolved the less likely they will be unhappy with your service. Put yourself in their shoes, if you have a problem and it takes a while for the resolution, you will be an unhappy person yourself.

This does not mean that you have to bend way over your back just to make the customer happy. If there are problems, they should be resolved in a manner beneficial to both of you.  Satisfied customers can become repeat customers which are the best customers to have around since you basically are no longer spending on advertising to get them. They can also be your unpaid advertisers if they share their good experience about your business to others.

The initial point of contact you will have with your would be customers is your website. It’s great to have a fantastic and attractive looking website but that’s not all to it. Remember it’s the products they are buying and not your website.  Your products must be presented in the best way possible to compel customers to buy.

As they say “a picture is worth a thousand words” so have good quality pictures of your product. As much as possible show other angles.  There should also be a proper detailed description of the product, including available color, size, the model number, and the condition of the product (when applicable). Giving dimensions may also be helpful.

Sales copy helps in selling; have a good write-up about the product and why it would be of use or value to a customer. Even the richest people in the world look at prices; your product should be competitively priced. Lower margins can be offset by more sales. Check if it’s possible to have lower prices.

Taking care of your customer, having good product presentation, and looking at the aspect of pricing are some of the helpful tips to having success in dropshipping.

So what’s all this stuff about dropshipping being easy and earning a lot of money? How could something be easy and give you so much profit? The whole business model itself makes the tasks involve easier. You do not have to put in a lot of capital like renting a place and doing renovation. You do not have to hire employees manning the cash register or mopping the floor. The work is segmented, with you doing the advertising and dealing with the customers and someone else handling the delivery.

What you have to keep in mind though is this will not just take off on its own. You have to put in the effort. Whether you hire someone to assist you or do it yourself there is still effort involved. The momentum must be kept. The one person who will keep the business going is you and your desire and enthusiasm.  You still have to put in the hours of work dedicated to your business. It’s because you have an idea how to go about it that you decided to get into this in the first place.  Will someone else work so hard to get you rich? You have to work hard yourself.

So because of this fact will you decide to not go into dropshipping? Well you can, but in every business undertaking the same effort is required and maybe even physical effort carrying and delivering boxes to customers; something you do not have to do with dropshipping.

There are federal and state laws to consider. The first question that comes to mind is what law covers dropshipping? Is this actually a legitimate form of business? Yes, it is legitimate and the laws governing it are those used in the mail-order business.  The government agency overseeing this is the Federal Trade Commission.

One of the salient rules to take into account is that anyone engaging in business with products that are advertised for sale be it done through mail, computer, or telephone is under the assumption that the product can be shipped within a reasonable period of time. If you do not happen to state in your advertisement the time frame involved in delivery the belief is the goods can be shipped in 30 days. So be careful with this rule.

This does not mean that you cannot ship a good over 30 days. Based from the National Mail Order Association, there must be a request coming from the dropshipper for the consent of the customer to accept order not shipped by the allowed time specified and also in this case if the customer wants, a refund must be given.

Since there is a sale involved in the transaction then of course there is the applicable sales tax law to take into account. In most instances you’ll be required to collect sales tax on any product sold in your state.  Look at the applicable website in your state for information on sales tax regulation.  For filing sales tax returns you must also apply for a state tax identification number.

Legitimate wholesalers will also ask for your federal employer ID number (EIN). For tax purposes this is used by the government to identify your business. Go to the Internal Revenue Service website and see where you can apply online for your EIN.

Before getting into the drop shipping business first contact your state department revenue services to know all the requirements needed (including licenses) to operate the business.

While this is your business, a great deal of its success will depend on the performance of your wholesaler/dropshipper supplier. He holds the merchandise and he will provide the delivery to bring the merchandise into your customer’s hands.  Like in any industry the margins count.  Getting the lowest possible price is very important.  Just make sure that the drop shipping supplier can deliver the product.  Especially when you’re just starting out you don’t want your reputation to be immediately ruined.

First the selection of the dropshipping supplier is important. There are those who are in the know about the industry and can help you get the right wholesalers. There are also plenty of scams out there. So beware.

Try to get as much information as you can about the dropshipping supplier and what reputation does he have. If you are being assisted in your search communicate clearly what you want and make sure that you also understand what is actually taking place. Make sure there are no misunderstandings that can make a deal go wrong.

The best way to succeed in this business is when you have a direct line of communication with your wholesaler or dropshipping supplier. Having middlemen may only add to cost. There should be regular communication with your dropshipping supplier.

When communicating there are some things you should lookout for with your dropship supplier. If you have some queries does your supplier answer you accordingly or simply take over the discussion and force through with his own topic? There is also something wrong if your dropship supplier takes too long to respond to any of your requests or questions. This could mean you are not a priority or the supplier does not have the capability.

Another issue to consider is if your dropshipper supplier can be on call at reasonable hours or in cases of emergencies.  Clear this us with the dropship supplier. Gauge also the transparency of your supplier. Is everything clear and upfront with policies and transactions or do new things suddenly pop up?

Always have clear lines of communication with your dropshipping supplier. Communication is key.

Your website is not you. It won’t talk like you or make people at ease as you are capable of doing in person. So you don’t make sales.  It is therefore very important that you get your website done just right so some of your personality is also there.

This entails that you deal with a web designer who can convey the message you want your customers to receive.  There are many web designers out there and there are just as many price quotes.  There are instances when people strike gold and can find a cheap web designer who can make a great website. Well this web designer may not be cheap for long. In general when you hire a dirt cheap web designer you will also get dirt cheap results and when you don’t get the result that you want you’ve just wasted your money.

It would be better to get someone or an outfit who’ve had experience in web designing and also have some knowledge of the industry you’re entering into. While you may have a great web design, it may not be that appropriate for the industry you are going to do business in. This is no different when entering the drop shipping business. There may be nuances that you are not aware of and having someone who knows them and does website building for a living in this particular field can help you from reinventing the wheel again.

Communicate well with your website builder so you can get what you want. A good web builder will also be able to provide good inputs.  Conversely if you are not that great in person at making sales, having the right website can do wonders for you. Communicate well with your web designer so you can communicate well with your would- be customers. Communication is key.