Starting a Successful Dropshipping Business
By former eBay Powerseller Greg Y.
Make sure you are working with a reputable company - Your supplier becomes an extension of your business. As a result, you need to ensure that they are a professional dealer who will continue to provide service after the sale has been made. It is always a good idea to have a real person who knows your business to contact if there is trouble (e.g. an individual account manager).
Avoid dropshippers who do not ask for a federal EIN (employer identification number) - Most legitimate wholesalers in the United States require you to provide them with a tax ID number in order to exempt you from sales tax (since you are not purchasing as a consumer).
Know how the item is being shipped - Customers can become worried if an item takes too long to arrive. Make sure you know how and when the item was shipped so you can provide step-by-step updates when requested.
Make your listings professional - Chances are that many other people will be selling the same products across the web. You can make your listings stand out by going the extra mile to make them look clean and professional to attract buyer’s looking for a reliable company.
Provide excellent customer service - Especially when you are not handling the product yourself, it is imperative that you communicate effectively with your customers. There are a lot of scams on the internet, and some buyers can be paranoid. Taking a few minutes to calm their concerns will make your business look even more legitimate and may even earn you repeat customers.
Never reveal that you are a dropshipper - Many people who are not familiar with wholesale dropshipping may think that it is a type of scam instead of an alternative method of product sourcing. By not revealing that the item is coming from a third-party, you also prevent customers from attempting to contact your supplier directly in the case of a delay or a problem.
Sell in multiple channels - The internet is full of excellent markets, so don’t limit yourself to just one or two. Consider selling on online auction sites (such as eBay), shopping sites and even your own website. It is very important not to become too dependent on any one channel, especially when it is a third-party site.
Outline a clear return policy and find our your supplier’s policies for defective items - It is inevitable that some customers will need to return items, whether they are defective or just not what they were looking for. Make sure you clearly state where returns should be sent, how much will be refunded and how the refund will be issued. Before you list anything, ask your supplier how they handle defective items so you are not stuck with piles of broken widgets.
Try multiple products and categories until you find a niche that works - The internet brings together buyers and sellers from all around the world, creating markets for all kinds of products that you may have never even known existed. Do not limit yourself to just one kind of product-experiment and explore until you find a niche that is right for you.
Make your business look as professional as possible - Chances are you will not have the best price on the net, so make sure that your business looks as professional and legitimate as possible to attract customers looking for a reliable seller. Buyers are often willing to pay more from sellers who look and sound trustworthy.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment