DropShipping is clearly one of those business concepts in which the partners you select are particularly important. In this case, these are mainly wholesalers and similar suppliers of goods. Only if the suppliers perform their services optimally and support you perfectly with your trading model, will you achieve maximum success as a DropShipper. Let us show you how to get to the right suppliers in a simple and safe way, find out what possibilities there are to put the partners through their paces and get to know the 10 most important rules when it comes to suppliers. In this way you will gain a stable advantage over your competitors.
DropShipping up-to-date: The best way to the optimal supplier
DropShipping offers you a fantastic opportunity to build your own e-commerce business model and benefit from a number of factors. This includes, of course, the chance to get by almost entirely without seed capital. While your classical working competitors have to invest a lot of money in the acquisition of your inventory, you can enrich your assortment with as many products as you want, without having to spend even one cent in advance.
You also save a lot of money by not needing your own warehouse and logistics. All in all, these aspects result in an excellent relationship between opportunities and risks and thus give your company very good prospects of success.
The prerequisite for this business model to run smoothly and profitably, however, is that you succeed in putting together an optimal pool of suppliers. The wholesale suppliers with whom you will be working on a permanent basis will have to take care of many responsible tasks for you. Your business will only be successful in the long run if you can rely on your partners and if they supply you with products of the highest quality.
Modern databases for the targeted search for wholesalers and suppliers
The point is for you to acquire a stock of vendors that fully meets the above criteria. Nowadays, the Internet offers us all fantastic opportunities for research and information retrieval. With the click of a mouse, you can contact any supplier around the world, without being restricted by national or continental borders. The immeasurable size of the World Wide Web also has a problematic effect. Your job today is to separate the wheat from the chaff and look for the best possible suppliers.
Platforms such as DropShipping.de can provide you with excellent support. Not for nothing do we operate the largest DropShipping database in the German-speaking world and would be happy to introduce you to thousands of suppliers and millions of products. This makes your daily work much easier and makes it much easier for you to find exactly those suppliers among the countless companies in the world with whom your cooperation is particularly simple, professional and reliable.
Discover partners and providers: trust is good, control is better
If, instead, you would rather become active on your own or if you would like to bring in your own suppliers in addition to using our database, then we recommend that you go to court with the suppliers very critically. Always remember that even a single negligent supplier can seriously jeopardize your business model. Don’t let it get this far and don’t rely on what potential partners promise you. Instead, be sure to conduct a rigorous review of all eligible candidates and take a particularly close look.
One thing must always be clear to you: a company can convey an impression of itself via a website that does not have to correspond to reality at all. Theoretically, it is possible for a single person at home to give the impression that you are dealing with a huge corporation with a very long company history. As a consequence, you need to take a closer look at each candidate if you really want to know who they are.
Here you should not only concern yourself with what the company writes about itself, but also inform yourself specifically on the net about what others say about the company. If, for example, it is a dubious provider, then sooner or later this will also be reflected on the Internet. Do not pay attention to every single negative comment, but concentrate on the accumulation of similar complaints.
Use anonymous test orders for checking
Before you consider working with us, you should always place one or two test orders. Remember not to give them up under your own name and of course not under the company name. Instead, ask neutral persons from your environment to place the orders. If you come from a small town or village, please make sure that the test order is placed from another location. Otherwise, the supplier might get the idea that you are behind the order and are trying harder to deliver than usual.
It is also worthwhile to check suppliers regularly in the course of long-term cooperation. In this way, you ensure sustained good performance, reliable service and stable revenues and profits.
Find the perfect DropShipping wholesaler with these rules
Once you have researched and located a number of potential DropShipping dealers, it’s time to analyze and review their performance. Only after you have fully convinced yourself that the companies fully meet your requirements should you begin to actively offer their products. For the evaluation of future DropShipping dealers there are some rules, which have already proven themselves in practice. We present these to you in the following.
Prefer known vendors
All beginnings are difficult. This also applies to the entry into the DropShipping trading model. Make the selection of suppliers easier at the beginning and focus on companies that you already know, that are generally known or about which you have heard a lot of good things. In this way, you reduce the risk of gaining negative experiences with a provider, which would lead to a bad start to your self-employment for you.
With growing experience and motivation, you can later fall back on more difficult partners. In the beginning, we recommend restraint and a security strategy.
First of all, rely on German suppliers
At first glance, it may seem strange if we advise you to start your career as an independent DropShipping retailer with German partners. And yet, as you will soon see, this council has its justification. Providers from Germany speak your language, act against the background of German law and are familiar with local customs.
This will make it easier for you to get started in this area. You often get better conditions from foreign wholesalers. Nevertheless, we feel that you should first gain some experience in purchasing before turning to international suppliers.
Check the partners critically
In DropShipping it is one of your most important tasks to find the right partners and providers. But you should not believe everything the wholesale trade promises you. Paper is known to be just as patient as websites. You can be promised a lot without even thinking about it in the end.
For this reason, you should review suppliers that you shortlist critically and carefully. Use the Internet and research thoroughly about partners, which would come in principle into question. Usually you will discover weaknesses and limitations quite quickly and reliably in this way.
Always test the performance
In the daily business of DropShippers, customer satisfaction naturally plays an extremely important role. Only satisfied buyers will buy again in your shop. Anyone who is dissatisfied, on the other hand, will tend to turn to the competition for future purchases. That’s why it’s so important that the partners you choose are willing and able to deliver good performance.
The delivery speed plays a decisive role here. Therefore, you should check thoroughly with test orders how quickly the individual supplier ships and in what condition the goods arrive at the recipient before you decide to cooperate with a partner.
As a DropShipping dealer, you benefit above all from the fact that you delegate many tasks to your partners. The vendors you work with store and ship the goods for you, so you don’t have to do any logistics or invest capital to purchase inventory.
Against this background, you should endeavour to develop optimal models for processing with the wholesale trade. Ideally, you should use a shop system that automatically forwards incoming orders to the respective supplier. In addition, it makes sense for your system to have immediate access to your suppliers’ inventory to show visitors and customers only products that are really available.
Negotiate optimal conditions
The conditions that you agree with the wholesaler ultimately determine the amount of profit that you can generate with DropShipping. For this reason, you should do everything in your power to achieve optimum conditions with your suppliers. Of course, this includes first of all the pure purchase price.
However, there are also items such as shipping and packaging costs. The terms of payment you are granted are also decisive for your profit. Define precise targets for each condition before you enter into a negotiation meeting and try to successfully enforce them with your partners and vendors in order to significantly improve your business position.
Avoid minimum order quantities
With DropShipping it is always a matter of ordering your sales goods only at the moment one of your customers has made a purchase in your shop again. After all, you want to avoid taking risks with products and pre-financing them for your customers. Now, unfortunately, the wholesale trade likes to define so-called minimum order quantities.
With this, the suppliers want to prevent individual articles from being ordered from you that are associated with a great deal of effort within logistics. This is exactly where the requirements of such suppliers collide with the basic rules of DropShipping. With the DropShipping business model, you cannot afford to work with a provider that insists on a minimum purchase quantity.
Arrange returns and warranties
In every business model, factors can be identified that prevent optimal economic development. In the area of drop shipping, returns in particular are among the incidents that lead to poor business results. Here you must take back goods from your customers, although these are usually no longer in a completely new condition.
You should absolutely agree with your suppliers what should happen concretely with such returns. In the event of warranty claims, it is also very important that you reach binding agreements with your partners. The goal should always be that as little effort and as little costs as possible arise on your side.
Compare your conditions regularly
In online trading, the search for suppliers, their offers and prices can only be regarded as a snapshot. A single new entrant can ensure that prices fall or that the choice of products becomes significantly wider. As a DropShipper, you are dependent on being able to buy at particularly low prices and at the same time rely on the reliability of your partners.
For this reason, you should always carry out condition comparisons during ongoing business operations. Check whether new suppliers have appeared on the market and research their conditions. In this way, you can ensure that you always buy as cheaply as possible and thus generate the optimum profits.
Rely on an optimal negotiation strategy
When it comes to obtaining the best possible conditions from the affiliated suppliers, a good negotiation strategy is already half the battle. It is important that you always know exactly what you want to achieve before a negotiation. Clearly define for yourself which conditions you are aiming for.
Don’t just think about the pure purchase price, but also include factors such as shipping and packaging costs or terms of payment. Define a limit above which you are not willing to do business with the provider. Stay realistic, however, and remember that you will need a replacement supplier immediately if you actually fail the negotiation.
You now know that selecting and evaluating manufacturers and wholesalers is a critical success factor in drop shipping. Learn more about our guidebook now “How to find the optimal supplier” to find out how the search for suppliers is guaranteed to be a success right from the start.