The success of online trading via DropShipping depends to a large extent on the performance and service readiness of the selected suppliers. Even the best assortment cannot exist on the market if customers are late or do not receive their orders at all, if the quality of the products does not meet the expectations of the buyers or if the consignments arrive damaged or dirty at the end customers.
In this trading model, you should devote a great deal of your time and attention to the careful selection and regular review of suppliers. Once several reliable DropShipping wholesalers have been found and integrated over time, this effort is significantly reduced. In the beginning, however, it is indispensable to successfully overcome this hurdle.
The supplier as a decisive success factor in DropShipping
Every business model has its own unique factors that have a significant impact on its success. When it comes to drop shipping, the selection of optimal suppliers plays a decisive role. Under the trading model, they take over the responsibilities of the dealer himself in the conventional sale of products. Imagine any seller who does not work on the basis of DropShipping.
It doesn’t matter whether you are thinking of a stationary shop owner or an Internet retailer. It is crucial that the retailer always sees the goods he offers and sells before handing them over to his customer or sending them to him. This gives him the opportunity to check the quality of the products. If we are dealing with an online shop, it also has an influence on the speed at which orders are processed and the condition of the packaging.
With DropShipping, this situation is completely different. Here, as a dealer, you consistently transfer the tasks presented to your suppliers. Only they get to see the products before they arrive at the customer. In addition, the partners determined how quickly the orders are processed and in what condition they reach the recipient. However, this recipient is your customer and thus the actual capital of your company.
Reviews fall back on you as a retailer, not on your DropShipping wholesaler
If the customer is dissatisfied with the service or the goods, then of course this does not fall back on your supplier. After all, your buyers don’t even know your partners. Instead, any negative experience will be directly attributed to you and your company. Here even small impairments are sufficient to ensure that the customer will never shop with you again.
As you can see, the performance of your suppliers ultimately decides whether you do good business on the basis of DropShipping or whether you have to struggle with negative figures instead. Reason enough to devote all your attention to the selection of the optimal DropShipping wholesalers and to proceed very carefully. If you manage to build up a really good and reliable pool of DropShipping partners, then nothing stands in the way of your lasting success. Otherwise, however, there is a risk of poor business results, which will seriously jeopardize your company in the medium term.
Without a clear strategy, supplier search becomes a dangerous blind flight
We have now made it very clear how important the selection of suitable suppliers is for the success of drop shipping companies. Against this background, it has already become clear that the selection process must by no means be arbitrary, but always strictly strategic. In concrete terms, this means that the DropShipping dealer must define a specific and standardised procedure for evaluating and selecting suppliers. This is the only way to maintain high quality standards on the one hand and to define the same criteria for all potential drop-shipping wholesalers on the other.
For the dealer this means that first of all the most important criteria must be clearly defined. So be sure to go to the trouble of compiling a list that clearly describes the requirements for future DropShipping wholesalers. These include, for example, the concrete purchasing costs, the other conditions, the quality of the products, the speed with which delivery is made, the quality of the packaging or the willingness of the supplier to regularly supply you with new product ideas and suggestions for the range.
Can potential partners meet your requirements as DropShipping wholesalers?
With the DropShipping business model, it is also always important that the DropShipping wholesaler is ready and able to provide you and your business model with maximum support at the technical level. In this context, for example, existing interfaces play an important role.
Now that you have defined the criteria, you should put them in a binding order, sorting them by importance and meaning. Now you can determine for each individual factor how the respective criterion can be examined. With some factors this is very simple. For example, a simple price inquiry will give you information about prices and conditions.
With regard to criteria such as reliability, punctuality or willingness to cooperate, you can partially carry out tests, for example by ordering or having ordered something on a trial basis. In the case of other factors, the first step is to use your own intuition, the results of which you will only be able to verify later within the framework of a collaboration.
Make sure that you adhere exactly to the rating scheme for each individual vendor and do not allow any exceptions. In the end, you will be able to see exactly which suppliers are suitable for cooperation and from which you should rather refrain.
DropShipping partners must be found and developed
We have now shown you how you are able to put the DropShipping wholesale trade through its paces and thus consistently reach partners who are suitable for your purposes. We strongly advise you not to deviate from this procedure even if you have become more and more confident in your ability to judge over time.
It is also important that you constantly expand the pool of suppliers and add new partners. The market is always on the move and if you want to make sure you don’t miss the boat, then your range needs new impulses from time to time. In addition it can always be that cheaper DropShipping wholesalers appear, whose good conditions you should not miss.
In order to inform yourself comfortably and unerringly about new partners on the market, you should use the supplier database of DropShipping.com. We are constantly adding to our stock of interesting wholesalers and manufacturers, so that there is always something new to discover for you here. Don’t miss the convenient possibilities to get to know interesting DropShipping wholesalers and their offers again and again through our database and get to know new suppliers regularly.
Negotiate with your DropShipping wholesalers regularly after
With regard to your existing pool of suppliers, it is very important that you negotiate prices and conditions with the various DropShipping wholesalers again and again. As a DropShipping dealer, you will in some cases initially receive worse purchasing conditions than conventional dealers. They buy their goods in larger quantities and can often negotiate good discounts. However, as soon as you reach certain purchase quantities within clearly fixed periods of time, comparable possibilities are open to you in the area of negotiation. Now, however, it is up to you to actively approach the DropShipping wholesalers and fight for better conditions.
By the way, this does not only include the pure purchase prices, which the supplier invoices to you. There are many other conditions that you should keep an eye on and that have a significant impact on your bottom line. This includes, among other things, the costs for packaging and shipping, the fees for the use of DropShipping functions or also the terms of payment. Always look at all important factors with the same attention and negotiate not only about prices, but also about other conditions.
DropShipping Wholesalers: Find the right DropShipping partners with these tips
They have already discovered how important it is to choose the optimal manufacturers and wholesalers for the DropShipping business model. If you violate this basic rule, you will not be able to operate successfully in the long run. It is anything but easy, especially for newcomers to e-commerce, to make good decisions about supplier selection. For this reason, we provide you with a total of 5 carefully selected practical tips that will support you in exactly this important project.
It is best to work through the individual tips carefully one after the other. Analyze the potential of the individual suggestions and critically examine to what extent you have already taken the suggestions into account in the past. If you follow our tips, you will quickly be successful in supplier selection and lay the foundation for an efficient and reliable pool of DropShipping partners.
Inclusion of existing suppliers
If you are already active in online trading, then you should ask your existing suppliers specifically whether they offer drop shipping services and route shipping. If this is not the case, then you can try yourself as a pioneer and convince your partner of the advantages of this model. Your mutual advantage: You already know each other quite well, have gained experience with each other and have built up trust.
This is the ideal basis for starting trading via DropShipping together with the trade. In this context, please also express your intention to work on the basis of drop shipments in the future. Your existing suppliers should know that you may want to look for other manufacturers and wholesalers if your request for route shipments is not met.
Own research via Internet
Your second option for building up a supplier base is to research companies yourself via the Internet and then actively ask them whether drop shipping is offered. If you opt for this method, it is recommended that you use a supplier directory such as the one provided by Suppliers.com. Here you will find the product ranges and contact details of more than 16,000 manufacturers and wholesalers.
However, it is necessary to call each individual company and ask whether drop shipping is a possible option. This way has proved to be quite time-consuming and requires patience and experience. Practice shows that only around 4 percent of the companies contacted in this way agree to a trading model using drop shipping.
Use of the supplier database of Dropshipping.de
The most effective and fastest way to a functioning supplier base of DropShipping partners is to use the Supplier database of Dropshipping.de. Here you will find more than 700 DropShipping wholesalers from Germany who already actively offer and carry out the sale of goods via DropShipping.
In total, the listed companies offer a stock of more than 4.2 million different products. In addition to a list of the products offered and the complete contact details of the DropShipping wholesalers, detailed portraits and descriptions of each listed company can also be found here.
Negotiate prices and conditions
As an online merchant, whether by drop shipping or in the traditional way, you are also a merchant. One of the tasks of this old and demanding profession has always been the persistent negotiation with suppliers. In this process, both prices and further conditions are being sought. Create a list of the conditions that matter to you. Before each negotiation, you should clearly define what you want to achieve.
Always set a higher value so that you have sufficient room for manoeuvre in negotiations. Also, make sure that you do not leave the negotiation below your original guidelines. Remember that any negotiation success you achieve has a direct positive impact on your bottom line and over time make it a habit to develop an individual negotiation strategy for each business partner.
Carry out test orders
Paper is just as patient as modern digital communication. In other words: Your suppliers can tell you a lot when it comes to how reliable they are, how high-quality the products are and how seriously they take it to provide you with excellent customer service. Only on full-bodied promises you should rely thereby on no case. It is one of your important tasks to critically check the promises of the DropShipping partners in advance.
This is particularly successful when you carry out specific test orders. Here you can directly experience how quickly the respective supplier delivers and how the quality of the goods is ordered. Of course, you should not use your company or your own name for test orders. Instead, ask friends or acquaintances to place such orders in order to get a truly objective impression.
The supplier plays a central role in the business model and after reading this article you now know exactly how to find the optimal wholesaler. If you want to know how you can get to grips with suppliers, then you should 5 Strategies for better DropShipping to get to know the other.
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