5 Things You Need to Know About Dropshipping

- Posted by to Dropshipping

Dropshipping is a popular way for e-commerce owners to start up their business because it doesn’t take much capital or warehouse space to accommodate a large inventory at the beginning. Instead, you market your wares online, and customers receive their order directly from the supplier. The goods are shipped right to the customer from the warehouse, and you pocket the difference between the wholesale and retail price.

While it sounds like a good deal for anyone who wants to launch an e-commerce business, there are a few elements regarding dropshipping that you need to know to ensure your success.

Plan to do Your Homework

Dropshipping isn’t a business model that any e-commerce business owner should rush into, since one bad experience with an unscrupulous supplier could be the beginning and end of your eBay career.

Take the time to research the various dropshipping companies available, the products they offer and the prices they charge. Don’t expect other e-commerce owners to readily share company names with you, since suppliers are often a well-kept trade secret. However, once you find companies on your own, visit the dropshipping feedback threads to determine whether other business owners have had success with the company you are considering.

Don’t Believe Everything You Read

When you start up your Google engine, beware some of the dropshipping websites that come up on your search. Many of these so-called sources for dropshipping information are really dropshipping companies in disguise. They have a distinct interest in luring you in, rather than providing you with good information to make you a savvy entrepreneur.

Consider the source of the information you choose, and when in doubt, check with other e-commerce owners on our forum to find out if your source is reliable.

Choose a Reputable Company

With the name of a dropshipping company in hand, you can research in earnest, checking forums and online reviews to determine whether the dropshipper you have your eye on is reliable and reputable.

Check with business agencies to see if the company has had any complaints posted against it and talk to other e-commerce owners to see if they have had any trouble with the company.

Get Samples of the Goods

Whenever possible, get samples of goods from dropshippers before selling their products. This provides you with the information you need about whether the items are of high quality and gives you an idea of the type of service your customers will be able to expect from the dropshipper.

Another way to sample dropshippers’ goods firsthand is to visit tradeshows, where samples will likely be available for your consideration.

Request Your Name on Packages

When your dropshipper sends out your orders, which company name appears on the package? Many dropshippers will put the e-commerce business on the package to breed familiarity with you and your customers. That way, if your customer wants to order additional goods, your business name is fresh in his mind.

Dropshipping is a good way to get started in e-commerce, but it is not without its share of pitfalls. By taking the time to do your homework and research both the business and the companies you might want to work with, you are more likely to build a successful and lucrative dropshipping business.

  • CocoM

    Research is important in order to be successful in the drop shipping business. You need to research for a product that you think will sell as well as the company that will supply you the goods. You can’t expect other business owners to reveal their suppliers with you. You need to do your own share of research.

  • Edward_C

    Due-diligence is important to avoid being scammed especially suppliers found through Internet search. Gather as much information as you can if you are eying a specific supplier before dealing with them. Forums like TWF are a great venue to gather feedback and tips.

  • Xyrelle

    If you want to be successful in a drop shipping business, you have to deal with a reliable and legitimate drop shipper. Remember, it is your business name that is at stake and your customers are not aware that the products didn’t actually come from you.

  • Audrey Gung

    Thanks Julie! Your artical is quite helpful. Yes. It is very important to first buy from the source companies, know about their product quality and customer service then decide whether to do business with them.

  • Mcclain John72

    Everything you say is true you definitly have to do your homework there are a lot of scams but there are reputile companies out there with some quality products check all your reviews of the company and the best I found is to Google the company because the ratings site pops up in the listing which will tell you how they are rated
    Good luck it took me a while but I made it and I think with enough research you will find it too
    A bit of advise there is no such thing is set it and forget it when it comes down to business it takes a little work to get it going.Out all the people who try online business only 5% will stick it out and make a good income the other 95% just simply give up or get scammed .Which percent do you want to fall in? Hard work gets you everywhere.