What should I keep in mind when I’m comparing drop shippers?

[Kittenn00b]

I’m down to the nitty-gritty, final choice in picking my supplier for drop shipping. What should I keep in mind when comparing my finalists?

[Windowslite]

I’ve been in your position, and those final decisions can be tricky. That said, you can keep your eye on a handful of factors, and they should prove a major benefit-

● Selection- You want your drop shipper to offer an array of goods, but also, ideally, specializes in your chosen market. That is, if your Thing is men’s grooming products, then you want a supplier with a large variety of men’s grooming products, aromatic bath salts, and a wide range of RCA radios.

● Quality of selection- Not only does the selection need to be varied, but also of the best quality you can afford. You want to make a test order or so, I’d recommend to a friend’s house, just to get an idea of what you’re looking at. While you’re at it, you can test the supplier’s packaging choices and expediency. Check feedback from other clients, and see what their opinions are of the drop shipper’s quality.

● Prices- This is a big one. You want a wide array, quality, but you also want to make a profit! Like with any supplier, it’s a major balancing act. One of the best ways to manage this equation is by getting a supplier as close to the means of production as possible. Fewer supply chain links between you and the factory should almost always trump other factors.

● Miscellaneous costs- You’ll likely need to pay shipping costs, order cancellation fees, and even (in the case of overseas sources) duty taxes. Ask the supplier about any and all potential expenses. Check out references and feedback to corroborate those claims. For heaven’s sake, read the fine print! You don’t want hidden fees biting you later.

[borisnoone]

Great list, but here’re Some Other Things to Consider-

1. Terms of Service (ToS)

This is a major one. The ToS will shape the entire relationship not only between you and the supplier, but you and your customer, and the invisible link between your customer and the supplier. The ToS defines everything; of special note are refund/exchange policies, order cancellation, and payment policies. It will save you some ugliness down the line.

2. Tools

Drop shippers seem to like gadgets. A lot of suppliers have very posh websites with online applications that allow you to check order status, inventory updates, get tracking numbers, and access the customer and product databases. Aim more directly for the supplier that provides you with a user-friendly, stress-less experience.

3. Delivery Time

As has been pointed out elsewhere in the forum, delivery time is important, but that importance depends on your niche. Simply put, products considered impulse buys (small electronics, Tchotchkes, and the like) are going to need to get to the customer in a few days, while larger items like furniture can typically handle 4 weeks delivery. Make sure the drop shipper has some sort of mechanism in place to compensate you (so that you can compensate your customer) if the shipment fails to leave on time.

[forgotten_4580]

First thing you want to do is separate yourself from the assumption that you’ll be narrowing your choices down to just one supplier. In my experience, diversification is the prime directive of drop shipping. If you’re down to the “nitty-gritty” choices from the top performers in your research, then find the top two or three, and cultivate a relationship with them.

This will take some of the stress of choosing off of you, and will hedge your supply against the dreaded back order, whatever metric you use for your final decisions, if you’re not actually done already since you’re going to take on a few suppliers, aren’t you?