Online trading via DropShipping is an excellent way to realize your dream of owning your own trading company without special capital and with reduced effort. Instead of tying up the available capital through extensive purchases of goods and, in addition, bearing the risk of poor saleability of the products, retailers can bring large and attractive product ranges to the market by means of drop-ship business without the retailer having to put all his eggs in one basket. However, in order for this modern form of retail to achieve the desired success, it is extremely important to pay particular attention to the selection of the optimal retail partners. A look into practice shows that especially beginners tend to make the same mistakes again and again.
If the selection of drop shipping providers is not made carefully enough, the newly founded company can quickly find itself in an economic slant. This is all the more annoying because the errors can be effectively avoided with a little background knowledge. In the following, we introduce you to the five most common error sources in the selection of suitable DropShipping partners and explain how these error sources can be effectively eliminated.
Problems of Understanding and Legal Uncertainty in International Partnerships
At first glance, the product ranges of international retailers often appear extremely attractive. Here committed online retailers will not only find unusual product ideas and current trends, but in many cases will also achieve very advantageous purchase prices. Although these are clearly convincing advantages and many international manufacturers and wholesalers also offer drop shipping, the potential problems that may arise in cooperating with these companies should not be ignored.
Think especially of possible language barriers, which can quickly cause annoying misunderstandings. In addition, it is sometimes impossible for foreign suppliers to dispatch individual deliveries to Germany quickly and flexibly. And the legal aspect should not be underestimated either. If disputes arise between you and your foreign supplier, these are usually decided in the country of origin and therefore not in accordance with German law.
Insufficient verification of reliability and quality
The be-all and end-all of online trading via DropShipping is a punctual and reliable delivery of the ordered goods to your end customers. In this context, it is important for online merchants to remember that the quality of deliveries can only be as good as the performance of the chosen supplier dictates. Against this background it is indispensable to check a potential supplier as thoroughly as possible before starting the cooperation.
Place several test orders and determine the respective delivery time. Take a close look at the products supplied and ensure that they are of perfect quality. Use the research possibilities on the Internet and search specifically for customer opinions and criticism about the potential partner.
The missing personal contact to the DropShipping supplier
Our modern communication lives from the media of our time. In many cases, the personal conversation has been replaced by contact via the Internet, e-mail or chat. Even though these means of communication are practical and time-saving in stressful everyday working life, the personal impression counts when choosing a long-term partner.
With this in mind, you should try to get to know your future DropShipping wholesalers personally and discuss the possibilities and options for cooperation in a direct conversation. Apart from the fact that this gives you an accurate impression of your counterpart, critical price negotiations can also be carried out more successfully in a “one-on-one discussion” than in communication via the Internet or e-mail.
Incalculable hurdles and barriers to the day-to-day running of a business
Even if the assortment and the prices of the potential DropShipping provider seem so attractive, you should not neglect to check the supplier and his performance against the background of the daily work. Especially when your business is booming, a seemingly small gap in your supplier’s performance can quickly become a big problem.
In this context, check above all whether the partner insists on minimum purchase quantities, whether it is possible for you to check the current stock levels on a daily basis, whether interfaces exist that can be integrated into your own software and whether the payment options granted to you by the supplier allow you to process your own customer orders quickly.
DropShipping suppliers with little experience in drop shipments
The topic of drop shipping is on everyone’s lips and more and more manufacturers and wholesalers have discovered this form of trade in the meantime in the hope of generating additional sales in drop shipments. However, caution is required if the supplier has little or no experience in drop shipping. Especially in the initiation of a business relationship weaknesses and deficits are only too gladly concealed.
If, however, it turns out in retrospect that the selected supplier first collects his first experience with drop shipments, then problems and difficulties are inevitable. Therefore, make sure in any case that the partner has sufficient experience and, in case of doubt, use the Internet to research the potential supplier.
With regard to the most serious mistakes in supplier selection, no one can fool you anymore. To ensure that your DropShipping business gets off to an optimal start, we have included exclusive Practical tips for success with DropShipping in front of you.
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