If you are planning to start a dropshipping business in the near future, or if you are already established but searching for some guidance, there are some things you need to know about your suppliers. Deciding on who you will partner with requires an equally strategic approach as your marketing efforts. Despite the concept of dropshipping allowing you to avoid inventory costs, not every supplier is right for your business. When deciding on manufacturers, here are some things to look for when vetting them.
Legitimacy
It’s unfortunate, but fraudulent suppliers exist. Dropshippers who find themselves entangled with them end up spending more money than they need to and do not provide their customers with satisfactory goods. When searching for potential partners, look for signs that mark them as scammers.
What are these signs? One is the presence of monthly fees. Many companies will charge you a beginning setup fee, but trustworthy suppliers will only charge you a small amount per-order (usually two to five dollars), but anyone that has an ongoing price tag or asks for pre-order fees is worth avoiding. Genuine wholesale suppliers also often request that you complete an application process before doing business with them and do not sell directly to the public.
There are other telltale hints to look out for: a legitimate dropship supplier will have a well-designed website that displays its contact information and location. It is also exceedingly rare that genuine suppliers will refuse to accept any methods of payment other than wire transfers. If so much as a phone number is missing, it is a reason to be suspicious.
Expertise
As a dropshipper, you do not necessarily need to know all there is to know about the products you sell, especially if there is a broad range. However, your supplier should be an expert in their field. If a customer has a question, you will be the one they turn to for answers—and if you cannot respond, there go the chances of that customer doing business with you again. Make sure you can readily turn to your supplier for knowledge and experience.
Expertise is also something beneficial to have on principle, not just for the sake of practicality. A company that knows the history and intricate details of its products is usually more trustworthy than one that doesn’t. You should also do your best to familiarize yourself with your products intimately, and a knowledgeable manufacturer makes a better teacher. When you first approach suppliers, double check that they know their products inside and out. Expertise is also a gateway to future innovation.
Quality
If you wish to find the highest rated wholesale dropshippers, then you need to check that the quality of their products is worthy of such a status. Dropshipping entrepreneurs who are just starting out may find it tempting to go for suppliers with the lowest prices. Doing so is not automatically the wisest decision: a product’s price is often correlative with how well it is made.
You hopefully intend to provide your customers with top-notch goods (do you want to be the person that sells someone a shoddy product?), which means you may need to spend a little more money. That’s okay; it will pay off in the long run. Search for the best deals you can, but partner with suppliers that do not sacrifice quality to entice you.
A convenient location
Your suppliers will be the ones shipping products to customers, not you. Because this step is out of your control, you need to partner with someone you trust to deliver goods punctually. This is an operational concern, of course, but it is also a matter of location. If you only do business with customers in the United States, allying with international suppliers is probably not the most pragmatic course of action. Customers love when their orders arrive at their doorsteps hastily.
Transparency
The key to a healthy business relationship is transparency. Your supplier should be honest about its manufacturing process, how long shipping takes, and how it packages goods. They should also have a reasonable return policy (you want to avoid that headache in case a customer sends something back).
Also double check that the company provides you with a data feed, which is an automatic and continuous process that updates your inventory. The supplier may make changes to the products it creates, so you need to always be on top of any alterations.
Dropshipping has changed the e-commerce landscape, but you still need to partner with suppliers that you trust. What do you look for when searching for suppliers?
