Minimizing the Risk of Working with Dropshippers

When you decide to launch an Internet business that is based on using dropshippers to supply your products you are placing your faith in an unknown quantity. Your very success or failure will depend on how effectively you select your dropshippers and how reliable they are in filling your orders. This can be pretty scary stuff. It doesn’t really have to be that scary though since there are some things you can do to increase your odds of success.

First and foremost you need to do your homework and your first stop will likely be the Internet. There are hundreds and hundreds of dropshippers listed on the web. How do you weed through this haystack of information. Well, you can narrow your search using a couple of criteria. Think about how will you be selling your product and what product will you be selling. Some dropshippers are unwilling to work with online sellers because they believe that their products become over exposed and they end up losing profit in the long run. This is relatively unusual these days but it does happen. Next, what are you going to be selling? You can easily whittle down your list of available dropshippers once you determine the types of products you will be selling.

OK, you’ve found a list of dropshippers that look good, now what? Start researching the individual companies. You need to locate information relating to their track record, their payment terms, their shipping methods and the like. You will likely be albe to eliminate a few candidates right off the bat since not all companies will offer the terms you have in mind. Next, visit online forums and dropshipping discussion groups to see if you can find complaints or praise for the dropship companies you are researching. This will help you narrow the list down a little further. So now you are left with perhaps 5 good viable candidates. OK, dig a little deeper then make contact directly with the company. How you are treated when you contact them will give you a pretty good feel for what their customer service is like. Did you stay on hold for a long time? Are they courteous and can you speak their language? Remember, if you have a problem with your orders these are the people you will have to deal with.

Your dropshipper is your face when it comes to dealing with your customer—they represent you. The packages that your customers have been anxiously waiting for will be coming directly from a stranger. Do you trust this person to represent you in a fashion that you will be proud of? Will the dropshipper have ample supply so that your customers do not receive backorder slips? Does the dropshipper provide products that are of a quality that you can be proud of them? Remember if a customer is not satisfied with your service or product he or she is much more likely to discuss it than if he or she is happy. You do not want negative feedback or flaming messages posted about your business in forums. Buyers do talk and all retail markets are extremely competitive in this day and age. All things being equal, buyers will select the more favorably reviewed provider.

In short, it is up to you to make sure that the dropshippers that you select are the right fit for you and your customers. Only by taking the time to fully research them can you reduce the odds of failure. With a little background research and lots of hard work, you can build a successful and profitable business.