Develope a Drop Ship Manufacturer Partnership
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This article will outline some guidelines to be aware of when
approaching
drop ship manufactures for the
first time.
Establishing a
relationship with a reputable drop ship manufacturer , is a critical ingredient when
establishing yourself as an online
retailer.
As important as finding and locating a drop shipper, is fostering a long
term relationship that will be rewarding for both parties.
The benefits provided by a drop shipper are tremendous when you consider
the overall benefits it gives to the online merchandiser. As a retailer
you're able to sell and market products without the hassle of stocking
inventory.
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This business model allows ordinary people to start on a part time or
full time basis and operate without incurring huge over-head costs. A
terrific advantage when operating on a shoestring budget. Having
established the fact that using drop shippers is a good idea, how do you
go about building a relationship.
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Prior to contacting anyone you must first legally set yourself up as a
business or legal entity.
Don't be ridiculous by thinking that your going to be able to make
any progress with manufacturers or second tier distributors, without
this basic non-step to start.
The bottom line is drop shipping suppliers will not even think about
speaking with you without a Fed Tax ID number and or resellers license. |
You will want to collect some important information, to set the
ground work for a solid relationship.
1.) What are there shipping terms. While there are many shipping
services out there, most will use just a select few. Dealing with a
supplier that uses a freight forwarding company that offers online
tracking will allow you to provide quicker accountability of orders you
have placed. Additionally, providing tracking #'s to your customers adds
yet another layer of comfort and makes them feel more confident in their
purchase. Further questions may include, whether or not they offer
online ordering and if they will affix a customized label to your order.
2.) Negotiating the price of the products. Most manufactures or second
tier wholesalers have standard pricing. If you choose to purchase in
bulk you may be able to secure a lower price per unit. Usually the
wholesaler or drop ship manufacture
will have a set price break and schedule for bulk purchases.
3.) Formulate a payment plan that suits your business. It's best to
arrange your chosen method of payment upfront. Usually you can set up
credit terms through standard methods. Most times you can pay per order
with either a credit card or business
check.
4.) Have a clear understanding of their product return procedure. How do
they handle credits and customer returns. When a customer wants to
return product or merchandise do they return it to you directly or do
they return it to the manufacture or
the drop ship supplier. Having these issues ironed out upfront will
ensure a smooth operation.
Finally, setting your business up the right way from the get go will
help you handle issues as they arise. Having a reliable product sourcing
company that you're able to build a solid relationship with, will be
paramount to having and running a successful drop shipping business.
If you would like to discover how smart people
locate real drop shippers
and manufactures with just the click of a mouse,
this video
which shows you how easy it is to locate real drop ship manufactures and
product sourcing companies.
More on Drop Shipping
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