Selling Online: Questions to Ask a New Dropship Supplier

If you’re in online sales and you’ve discovered the joys of dropshipping then the next step is to choose the right supplier. For those still unaware of what dropshipping is, it is basically a supply chain management technique that saves the retailer money on overhead costs such as inventory warehousing, handling and shipping. A dropshipper is a company that will ship the item directly from their warehouse to your customer.

In order to minimize the risks involved in dropshipping and to protect your reputation as a seller, it is important to ask your potential dropship suppliers the right questions. Here are some you can start out with:

• What’s your average order fulfillment time? Find out how long it will take from the time you place the order to the time they send it out to your customer.
• Do you have a tracking system available? If they don’t have their own system available for tracking the item, then find out if they work with a courier that does. If an item doesn’t arrive or is delayed, you will need to find a way to keep your customers updated.
• To which countries do they ship to? This should be disclosed in your own website. Dropshipping allows you to expand your business globally, so work with a company that could help you scale in that direction.
• Will the items be white-labeled? The item will not be coming directly from you but it would be best to have it bear your logo in the shipping credentials. White-labeling is such that a product is marked as a generic item that can be branded as coming from a particular retailer instead of direct from the supplier.
• Is there a minimum order amount? This is how dropshipping is essentially different from buying wholesale. The prices will vary per supplier, but they should be able to send out minimum quantities (ie just a single piece to a single recipient).
• Does the dropshipper allow product returns? If they do, find out if there’s a cost associated with returning the item. The dropshipper’s return policy should reflect in your own policy in your online store.
  

As you keep using dropshipping for your supply chain management and you grown your online store, you will come across more questions that will be pertinent to run your business. List those down so you have a checklist ready every time you consider a new dropshipping supplier.

Happy selling!

 

Comments

[Jeremy Smith]

Consider outsourcing your order fulfillment if you are selling online. Check out a company like www.fillship.com if you are a small online retailer.