Dropshipping Tips for Retailers

December 22, 2010 by

Dropshipping works like a partnership. The retailer and the dropshipper share the responsibilities that would normally be conducted within a single business. The retailer markets the products and deals with the customers, while the dropshipper manages the inventory and organized deliveries to the customers. In order for this relationship to work well, it is important for the retailer to be able to rely on their dropshipper and to work hard to find customers and make sales.

Selecting a reputable, trustworthy dropshipper is essential. This decision will determine the success of the enterprise, so it is worthwhile spending some time looking at different dropshippers and checking their reputation online and with the Better Business Bureau. It will also be useful to communicate with the dropshipper. In order to build a good relationship with the dropshipper, it will be necessary to be able to talk to them easily, so this will be a good test of how quickly they respond and how helpful they try to be. Asking questions about their products, costs, delivery times and returns policy will also enable the retailer to make an informed choice of dropshipper.

Retailers need to know the products that they sell as intimately as possible. It is a good idea to choose a dropshipper who provides plenty of photographs and detailed information about their products. It is an even better idea to get acquainted with the products at first hand. This can be done by ordering the product from the dropshipper, which will also give the retailer a good idea of the reliability and speed of delivery of the dropshipper. Alternatively, some dropshippers may be willing to provide free sample of some of their items. As well as enabling the retailer to provide accurate information about the product to their customers, examining the item will allow its quality to be inspected. Selling poor quality items is likely to lead to complaints from customers, which it will be the retailer’s responsibility to deal with.

Pricing products properly is essential for success. The retailer needs to be able to set a price that will be attractive to potential customers, but which will still earn them sufficient profit. It is, therefore, important to ensure that the costs of buying from the dropshipper will be reasonable. A good way of checking whether the prices offered by a particular dropshipper are competitive is to take the SKU of the product and find out what it is being sold for by other retailers and dropshippers.

Since the retailer will be saving both time and money by leaving the storage and delivery of goods to the dropshipper, they should make use of these savings by focusing their efforts on providing excellent customer service and by working on promoting their products. Unless they market and sell their products, the retailer is not going to make any money, and their dropshipper will also be earning less.

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