What Questions Should I Ask Of A Drop Shipping Service?
It is one thing to find a product offered through a drop ship service. It is another thing to make sure that the service provider and drop ship supplier of that product can deliver what the drop ship service says it will deliver and that it will be delivered on time
You depend on that service for your reputation. And you depend on the service to be able to provide the product in sufficient quantities so that you can recover your investment in your business.
Don't get yourself caught in the position of having invested in a business without having thoroughly researched your product and assured yourself of a supplier that can deliver
Here are some questions you should ask of any drop ship service.
What is the price to you? - You need to make sure that their drop ship wholesale prices are reasonably lower than the prices you'll be able to sell the products for -- to ensure that you're left with a fair profit margin
What are the pick, pack and handling fees? Are there any other fees? If so, how much? Most companies who drop ship will simply add the cost of UPS or FedEx shipping onto your wholesale price, but some will also charge you a handling fee (generally between $1 and $5). This is to offset their cost of picking, packing, and processing the order for you.
Do they have a monthly minimum or maximum or products that they will drop ship? - Some companies will require that you sell a minimum dollar amount of their products each month (usually around $100). A few also have a monthly maximum of units they will ship for you. If you think that you will be selling more than this number each month, they'll refer you to one of their distributors.
How do they ship their products? - Almost every company that drop ships products will use a major nationwide delivery service like UPS or FedEx. Ask them to include tracking numbers with the order confirmations they send. This will save you many potential problems when customers ask, "Where is my order?"
What is the time from order to shipment?
How do they bill you? - Most drop shippers will bill your credit card the wholesale price of the product plus shipping and handling as soon as they receive an order from you. With others, you may be able to set up a monthly billing cycle where you submit payment for all orders at the end of each month.
What about images and descriptions? - You'll also need the manufacturer to send you descriptions and images of the products you'll be selling for your web site.
Many companies will simply tell you to take the images directly from their own site. Others will e-mail you a link to their product information. Companies with large inventories may want to mail you a CD-ROM of their product images and descriptions.
And there are many other questions.
Will they include your invoice and are there extra charges?
Do they have an online order and inventory system?
Do they have online order tracking?
What is their return policy and what are the procedures?
What are the charges to you for returns?
How do they confirm orders?
These and more are included in the Drop Ship Guide Startup Checklist.
This topic, and many more, are covered in great detail in our free drop shipping tutorial series Your Drop Shipping Business, A to Z. It is an extensive course with full video and text tutorials. It gives you details on how to drop ship and how to set up multiple streams of income.
You are invited to get a copy of the course, as well as watch the remaining videos in this series. You can find the course at Your Drop Shipping Business, A to Z
