How to be a Dropship Supplier
A drop-ship supplier is a wholesaler or manufacturer who is willing and able to deliver goods directly to resellers' (retailers') customers. A drop-ship supplier is not a middleman working for a wholesaler or manufacturer.
To take advantage of this fast growing sales and marketing system you will need:
- To be a genuine wholesaler or manufacturer (no-middlemen).
Do not attempt to act as an agent for other wholesalers. You must have the stock in your control. Trying to act as an agent for other companies invariably leads to problems for the agent and the reseller and can result in legal action. A Genuine Wholesaler or Manufacturer is a business that stocks or manufactures products in bulk. A drop-ship wholesaler is a wholesaler who is willing and able to send products in retail AND/OR wholesale quantities directly to a resellers customer with a delivery docket. Drop-shipping is not about promoting your wholesale business to the customers of resellers and where possible the goods should arrive at the customer's location with a delivery docket only with NO PRICES SHOWN. A sales invoice should be provided to the reseller for the wholesale price charged.
- To deliver products directly to the customers for resellers.
Delivering directly to customers is the core to drop-shipping. If you do not have the infrastructure to deliver products directly to the resellers' customers you will not be able to drop-ship. Most resellers sell products in retail quantities and are looking for wholesalers who are willing to deliver products in small quantities. With this in mind it would be fair to say that a wholesaler could charge a little more than their 'bulk quantity' prices due to the fact that they will need to break cartons. Most resellers understand this.
- To provide a price list and shipping costs.
The easier you make it for a reseller the more they will sell for you. Do not leave it up to a reseller to calculate shipping costs.
- To provide images and product information to resellers.
For resellers to be successful promoting your products you should provide them with the same sales and marketing materials that you would provide for an employed sales person.
- To be able to notify resellers of price changes and/or product shortages.
Just like employed salespeople, your resellers are depending on you to keep them informed of possible supply problems or end of stock issues. Drop-ship suppliers who are having great success from this system are looking out for the interests of resellers as well as their own.
- To provide support and advice to resellers for your products.
You should always support your products. Give clear instructions to your resellers on what to do if they have warranty enquiries or product quality issues with their customers. Make sure you notify resellers if you ever have a product recall for any reason. This will build your reputation as a genuine drop-ship business and attract more resellers to increase your sales.
- To provide written terms and conditions to resellers.
Provide clear, concise terms and conditions to your resellers. Do not leave issues to chance. If you do not want your products sold on a particular web site or you have a set price for products that resellers must use, let them know in your terms and conditions. This will avoid potential problems and misunderstandings in the future.
If you would like to add your business to the drop-ship suppliers directory you must first become a member . You will than have access to the Drop-ship Suppliers Directory and you can add your details. Every submission to the directory is checked for authenticity and must be approved by the administrators. In most cases this can be done within 24 hours if you provide the information asked for on the application form.
Please contact us is you have any questions.