Most Frequently Asked Drop Shipping Questions
March 14, 2011 Drop Ship StrategiesBelow are the most frequently asked drop shipping questions and their answers:
1.) Do Drop Shipping suppliers work with new online retailers?
Yes, many drop shipping suppliers work with new online retailers as their main concern is finding great marketers who can sell their products. The suppliers need to get their products into the hands of the end consumer and they know that they will only be able to do this by affiliating with numerous retailers. As long as you are willing to work hard and have a good understanding of internet marketing, you will be okay.
2.) How can I position my company as credible in the eyes of the supplier?
• Make sure you read all of the information on the website of the supplier before you call or email questions to a representative. The majority of times, the answers to your questions can be found on the website. If you waste the time of the supplier asking questions that have already been answered on the website, you are sending a clear message in regards to your credibility and professionalism.
•When contacting a supplier, make sure you get to the purpose for your call quickly. Drop Shipping suppliers are extremely busy and do not have time for idle conversation. Although, they take delight in helping their retail partners, please make sure that you communicate efficiently when contacting any supplier.
•Remain patient with your suppliers because many of them are busy and can not respond to your questions immediately. You do not want to gain the reputation of being a demanding customer as this will limit your chance of getting preferential service.
3. After finding a supplier that fits my needs, what is the best way to approach them?
The first thing you need to do is complete an online application to open a new account if one is available on their website. Drop Shipping suppliers will want to confirm that you are a legitimate retailer before granting you access to their pricing data. You will need to make sure that you have a legal business structure and are registered before working with any supplier.
4. Should I only focus on popular products such as: iPods, gaming consoles, and designer clothes?
The reality is that not everyone is aware that a product is popular. However, once the popularity of the product brings more retailers in the marketplace, the profits margins are sure to dwindle with the increased competition.
Another thing to consider is that many of the popular manufactures will require that your purchase a large number of units often in excess of $100,000. Even with buying the products in such a large quantity, you will still have pricing that is higher than that of most large retail shopping chains who purchase products in excess of $1,000,000 and higher, plus you probably will not be able to drop ship any of these popular items.
These are just some of the few common questions asked by new online retailers as they enter the world of online retailing and drop shipping.
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