Top 10 Dropshipping Tips

Dropshipping or Drop Shipping is a technique used more and more by online retailers who don’t have bricks and morter outlets or storage space for keeping stock.

The product supplied by the retailer is often delivered direct to the customer from the manufacturer or distribution company, but the contract and all paper work is between the retailer and the customer.

Our top 10 tips for dropshipping are,

  1. A reliable manufacturer / distributor
  2. An effecient and reliable delivery service
  3. A sensible agreement with manufacturer / distributor regards returns
  4. Full manufacturers warranties are transferred to customer and product liability insurance is in place and apply to the retailer and manufacturere / distributor
  5. A good relationship and understanding with manufacturer and the assurance that they won’t try to sell direct and cut you out of the equation
  6. An easily delivered, niche product with high mark up
  7. A reliable product which is easily described, uncomplicated, and unlikely to result in too many returns.
  8. The option to have customised paperwork and unmarked packaging sent to the end customer
  9. Nice credit facilty with supplier which stops cashflow problems occuring as you can then receive payment for products before you have to pay for them
  10. Full understnding of distance selling regulations and water tight terms and conditions

The best dropshipping relationships are with sensible manufacturers / distributors who understand that they do what they do best; import, store, distribute and you do what you do best; market, sell. They don’t try to be smart and cut the marketer/retailer out of the deal but are happy working together.

This article has received 3 Ducks – Gerald Duck

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