The Drop Ship Guide

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Drop Shipping Problems And Solutions

Drop shipping is not without its problems. This page discusses some of them and provides some solutions.

In this lesson I will discuss a few things that most other people in this business ignore. They concern some traps and alternatives to drop shipping.

Drop shipping is a tool. It is not a goal. And like any tool, if it is not used properly, it can hurt you. So please read this and try not to get hurt.

Use drop shipping safely. Be careful and don't take avoidable risks. You are going into business so you are going to take some risk. But avoid making blunders that are avoidable.

Control

When you use drop shipping a third party will be picking products and shipping them for you. You do not have control. Your reputation is totally dependent upon that third party. If they are slow, they don't ship complete orders, they pack poorly and products arrive broken, or they ship the wrong items, it is you who will answer.

So be sure to test them. Order some product yourself. Don't tell them that it is a test. See what happens. Check the entire process. When we test we order 4 times. We just reship the product to our buyer and consider the extra work the expense of testing.

Ordering not only tests the system, it allows you to check the quality of the product. And it allows you to write descriptions of the product based on first hand knowledge.

Do not avoid this step. Order and test.

Shipping

Shipping can be a big issue. The price of the product may be great at the factory, but by the time you pay for packing, shipping, customs fees, taxes, etc. the product is overpriced.

Shipping costs often mean that you must limit yourself to high value items. Since it may cost as much to ship $20 worth of amber and silver jewelry from Poland to your country as it costs to ship $1,000 worth, you may want to make a purchase of a number of pieces and reship them yourself in your country.

Likewise you might want to buy a case of crystal vases pre-packed for mail order. By that I mean you do just what the large mail order houses do. You get the product from the factory packed in its regular packing and that unit packed in another brown corrugated box for shipping. So all that you have to do is attach the shipping documents. You have control, you don't have any packing to do and your shipping cost per unit is lower.

Watch the prices

Drop shipping is a great process to use. But you have to be careful. The woods are filled with wolves. And they prey on the small businesses that are moving quickly to get started.

Please remember that you do not get something for nothing. People selling products are in business to make money. So there are going to be costs to you.

In some cases drop shippers sell at retail prices. So you, as a seller, would be selling those same products at above retail. This sounds silly, but the drop shipping terms offered by these companies make it sound so attractive that they do this every day.

So what is the solution?

It is very simple. You just have to do some research and find companies that sell products at reasonable prices.

Products To Sell At Reasonable Prices

There are products that you can sell everywhere. The more popular drop ship directories have hundreds of thousands of products from which you can choose. But don't stop there. You can make local contacts with small businesses in your area and drop ship unique products that no one else will have. You will be truly unique because you will have the exclusive right to drop ship those products.

Drop shipping local products is something on which we will spend more time in a later lesson. But for now just understand it is a distinct possibility that you should pursue.

Because this is the basic course in Drop Shipping I am going to refer to you to the basic resources at the present time. As you get more experience in business it is likely that you will look at other sources but for now these should be sufficient.

You confined hundreds of thousands of products in drop ship directories. Drop ship directories have a particular advantage in that they actively work to weed out bad suppliers. There are no guarantees that some of the suppliers will perform all the time, but generally the authors of the drop ship directories work very hard to maintain their own reputations by finding good products from good drop shippers. Purchasing a drop ship directory now is really in your best interests because it gives you a good basis for a market research. If you have a drop ship directory in hand you can better focus your thoughts and the long run it you will probably save money in many areas as diverse as your website or online store.

End Notes

I guess the main thrust of this lesson is to be careful and look at all the options before you waste a lot of time, effort and money. You can get trapped if you are not careful. Read, check and lay out a plan.

Your success lies not in speed but in how good your plan is.