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Imagine how much money you could make if you could set up a fullystocked e-commerce store that features thousands of products without having to invest any money upfront, worry about inventory, or shipping?
If this sounds like something you’d be interested in, then drop shipping is exactly what you’ve been looking for.
With drop shipping, most of the heavy-lifting has been done for you. In fact, not only is it one of the easiest business formats to get involved in, but it’s also one of the lowest-cost startup solutions you’ll ever find. With drop shipping:
1. You don’t need to invest any money upfront for inventory. Your customer pays you for their order, and then you submit that request to the drop shipper who takes care of everything else!
2. You don’t have to worry about tedious, time-consuming paperwork like you do when buying wholesale. Most wholesalers require you to have paperwork such as articles of incorporation, a business license, and/or a tax ID number, but drop shippers do not.
3. You don’t need to take up space in your home or office, or invest in warehouse space to store your inventory because you’ll never have to worry about any of that! Your drop shipper handles everything.
4. You don’t have to worry about packing and shipping products, because none of that is your responsibility! You simply forward the orders received and the rest is out of your hands.
Of course, like anything, drop shipping can have a few downsides, as well. For example, you must depend on the drop shipping company to send out the correct item, package it carefully, send it quickly, and make sure the customer is satisfied.
Fortunately, there are ways to mitigate, and in many cases, eliminate most of these issues, and that is exactly what we are going to focus on in this special report.
So, let’s get started!
Before we dive into some of the important components of becoming a successful drop shipper, let’s talk about a few things you need to be aware of so you can avoid becoming a victim of a drop shipping scam. Upfront payments or monthly fees:
You’ll want to avoid any drop shipping company or opportunity that requires monthly fees or any upfront payment. These opportunities typically provide little value because they rely on the incoming monthly payments as their main source of income rather than focusing on helping you connect customers with high-quality products. Profit Margins:
Pay attention to how your drop shipper determines product pricing. In order to make money you’ll want to look for products that are priced much lower than retail value otherwise you’ll struggle to generate enough of a profit for it to be worth your while.
Consider their return policy:
Make sure that you thoroughly research any drop shipping company you are considering and pay special attention to their return policy. You want to be sure that the company you choose allows for product returns because otherwise, you’ll be responsible for handling those return requests.
There’s a very-detailed article on how to choose a professional drop ship company that will work best for you at:
https://dropshippulse.com/drop-shipping-business-model-right-foryou/ I suggest you take a few minutes to read the information found on Drop Ship Pulse and bookmark it for future reference. They offer a ton of free information on getting started in drop shipping, including a list of drop ship directories and aggregators so you can get started quickly. Here’s the link to their main page: http://www.DropShipPulse.com
Returns are probably the biggest problem you will ever face with drop shipping, because many drop shippers either don’t accept returns, take a long time to ship items, or require you to pay for another item to ship to the customer instead of accepting the item back and then sending out a replacement.
There are a few ways to combat this, and we’re going to talk about some of the best methods for reducing returns.
What Causes Returns
There are three main reasons people return items. There may be occasional situations that fall outside these three main areas, but these situations will likely be quite rare, so we are going to focus only on the most common causes.
Dropshipping Speed Bumps: Special Report 11
1. Buyer error. This happens when buyers don’t read the description properly, choose the wrong size or color, etc. Your supplier probably won’t accept refunds due to buyer error, so it’s important to have a clear policy in place for situations such as these.
It’s a good idea to accept all returns, because this will create loyal buyers, but you may want to charge your customer for the return shipping on the item since it wasn’t your fault they made a mistake.
2. Description error. If there is an error in the description, it is ultimately your fault. Even if the description came straight from the supplier, it is up to you as the owner of your website to check all descriptions for accuracy before publishing an item for sale. So if a buyer receives the wrong item, always accept responsibility, even if you feel it isn’t your fault.
3. Damaged or defective item. Most suppliers will accept returns for damaged or defective merchandise. If they don’t, you shouldn’t be working with them. When you receive a complaint about damaged or defective merchandise, don’t ask the customer to pay any sort of shipping fees, and make the return as easy as you possibly can.
Returns are going to happen, no matter what steps you take. They’re just a fact of doing business. But there are ways to reduce returns, and the key is looking at the three reasons people typically return merchandise, and how to mitigate those as much as possible. Now, let’s move on to the next section, which is where we will start looking at simple ways to reduce returns.
Choosing the Right Supplier
It’s especially important to choose the right drop shipping company right from the start in order to make everything go as smoothly as possible. So, let’s talk about some ways to choose the best supplier for your needs. Choosing the right company is probably the single most important thing you can do to make your business run as smoothly as possible, especially when it comes to returns.
First, always use a supplier in your home country, if possible. There may be times when this isn’t a possibility, because the suppliers in your company may be overpriced, have certain restrictions, won’t ship to other countries, or there may not be a supplier that has what you need in your country.
If you use a supplier in China, for example, shipping times will be longer and there may be more mistakes in the ordering process. But Chinese companies often have drastically lower prices than other suppliers, which can often outweigh those occasional issues.
If you must use an overseas supplier, be sure they have a good reputation, have reasonable shipping costs to the countries you want to do business in, and have a good return policy.
If you cannot find information about a company online, be sure to place a few test orders and have them sent to your address to be certain the orders are fulfilled correctly, that shipping costs aren’t too high, and that your order arrives in a timely fashion.