Manage Your Dropshipping Wholesaler To Better Profits

Author xlxmarketing 23.3.2008. | 18:36

Terry was in a quandary… He had been running an online store successfully for some years, but after setting up an account with a dropship aggregate company, he found he wasn’t getting the service he needed and was starting to lose some old customers.

Terry isn’t alone… there are a slew of online shop owners and eBay traders out there who have switched from normal wholesale suppliers to a dropshipping wholesale supplier or aggregate dropshipper and are unhappy with the consequences.

A common topic on dropshipping forum threads is the proliferation of poor and fraudulent dropship providers.

So how can you best manage your dropship wholesale suppliers to make sure your customers receive the necessary goods in good condition, and in a timely manner?

There are three steps to help you successfully manage wholesale dropshippers, including:

  • Reducing the number of suppliers you get goods from.
  • Developing a good relationship with your wholesale dropship suppliers.
  • Choosing the products that will guarantee you the most profit.

Reduce The Number Of Suppliers On Your List.

Anybody in business will tell you that a big list of suppliers can often be a headache to manage.

The situation is no different in ecommerce and those sourcing products from a large number of dropship websites often find it difficult to keep track of who is supplying what, who is doing a good job and who is causing customer complaints.

The simple solution to this problem is to simply cut down the number of dropship companies you are using. This will make it easier for you to track which wholesale dropshipping company delivers on time and which supplier is causes problems.

The easiest way to thin out poor performers is to go through your catalogue and see which items are selling well, or which items are stocked by more than one supplier.

Eliminating The Chaff

Cut poor performers from your product list and watch your profits grow.

Another easy way to thin out bad performers is to go through customer correspondence and see which products and suppliers cause the most complaints over defective products or late shipments and thinning them from your lists.

While it may mean you will only have half of the listings it will mean that you can guarantee that all of the items on your site are of a high quality and they will be delivered on time keeping your customers happy and your profits high.

Build a strong relationship with your wholesale drop ship suppliers.

While dealing with the product supply chain will be easier with a wholesale dropshipper that doesn’t mean you can ignore it completely. Just because you don’t have to micro manage the supply of goods doesn’t mean it can be forgotten about. There are still things you will need to do to ensure happy customers and steady revenue.

Firstly it is a good idea to have a few items of stock on-hand to fill customer orders…that way if something unforeseen should happen you can still fill the customer’s order in time without worry.

While a good drop shipper should be able to cope with minor details like a factory discontinuing a line; there are things that even they can’t deal with. By keeping a few pieces on hand you can ensure your customers are always happy and your reputation isn’t damaged by a late delivery.

It’s also a good idea to keep in touch with your dropshipper.

Keep customers’ reference numbers on hand and email the dropshipper to check that everything is going smoothly. If the dropshipping provider sees that you care about your customers they will probably try harder to keep them happy as well.

Managing your dropshipper

Find a good product

Anybody will tell you that a good product almost sells itself and that is certainly true in the world of ecommerce.

While you could probably find a wholesale dropship company to supply you with any product that you could care to name, you’re probably better sticking to a product that have the following characteristics:

  • Relatively low wholesale cost
  • High perceived value in the end-user market
  • Relatively small with low shipping cost

Things like perfumes, cosmetics and electronics fill all of these requirements. Electronics are an especially nice category as almost everyone always wants to upgrade to the latest model

Road King 7 Inch High-Def Car DVD Player with GPS and DVB-T 8GB touchscreen MP4 with camera
8GB steel MP4 watch Super Radio (Streaming Internet, DAB+, iPod/iPhone Dock)

Products like these high-quality electronics from China often give you the best return on dropshipping.

One quick look at the market for iPods and touchscreen MP4s is a good conformation of this, as is an examination of the market for car DVD players. Car DVD sales were worth $30 million to retailers last year in the US alone.

By choosing the right product, thinning out poor performing products or drop shipping providers, building up a good relationship with your dropship provider and keeping a few pieces on hand in case of emergencies you should find your dropshipping experience becomes more positive.

dropship tips

Author xlxmarketing 23.3.2008. | 18:36
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