Thursday, January 17, 2008

Choosing the Right Dropshipping Company

Dropshipping has become the new way to sell on Ebay and it is growing in popularity with e-stores set up by individuals as well. There is a downside, though. Some dropshippers are unscrupulous and you really need to be careful before you start randomly selling things from any old dropshipping company. There are a few ways to make sure that you are getting a good dropshipping company and those are outlined below.

The first thing you need to do is find a wholesale company that specializes in dropshipping. Not all dropshippers are wholesalers, in fact, many sell their good for higher than normal prices! Even if they say wholesale on their webpage, you will need to check this out yourself.

It is pretty easy to check prices, just pop over to Google and do a search on a few of the items that you are interested in selling. For example, if you want to sell iPods, you can look up the regular price at Buy.com or any other regular vendor and compare it to your so-called “wholesale” price on the dropshipping company’s site. This will give you a good idea within a minute or two of how the prices rate.

Once you have a dropshipping lead that actually does have good prices (these can be very hard to come by!), you will need to test their shipping times and product quality. This might sound like a lot of work, but it is worth it in the long run. You will avoid having customers complaining to you and having to refund money by assuring yourself of the quality ahead of time.

To check the shipping and product quality, you will need to set up an account with the dropshipping company and order a sample of the product you intend to sell. Don’t worry about having to pay for it, since you will be selling it on Ebay anyway and shipping the first one from your home! This way, you get your money back without any problems, and you get to see if the whole system works.

It is often a good idea to test two or three dropshipping companies at a time so you can choose one faster. Check their websites for backordering details as well, since this could affect you in the case of selling on Ebay. You will want to know basically how long items will be backordered and what their refund policy is in these cases. This is another good reason to have two or more dropshipping companies on the line, you can always go with one when the other is out of stock.

The only thing left to do now is to choose your dropshipping company and start selling! Take digital photos of the sample items that you received and use those instead of stock photos on Ebay and your website, since this tends to portray more confidence. Start with one or two auctions at first and see how things go. If there are no hitches and your clients receive the product they ordered through the dropshipping company, you can go ahead and blitz the place!

It is important to take the time to test and review the dropshipping companies that you intend to use, since you will be on the hook if they fail. Checking out your suppliers before you sell is a generally good business policy anyway, so get in the habit of it.

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