Online businesses are now common, and it is very convenient for both retailer and buyer because there is no need to travel to a store to get a few items. Online retailing is also very convenient, especially if you own an online store, since you need not deliver the products to your clients anymore because a drop shipping company can do that for you. In choosing a drop shipping company, consider these tips to ensure maximum profit from your online business:
- Check out profiles of drop shipping companies in your area, and call them up and ask your questions. Find out their area of coverage, where they can deliver products and within how many days do they deliver an order. Also check out whether their business is registered with the state and has indeed fulfilled the state requirements for a drop shipping company to operate. Ask specific questions about their business and if they are not pleasant about providing you with basic information, drop them and look for another drop ship company.
- Inquire if they charge membership or registration fees. If they do, then scratch them off your short list. Drop shipping companies that are established are not supposed to charge membership fees since they already charge per transaction.
- Check out the products that the drop shipping company have, and whether they offer the products you are retailing. It is best to deal with a drop ship company that provides a wide array of products so you do not have to deal with different drop shipping companies for different product lines.
- Check out the quality of the products that they carry. Make sure that the products are of good quality and are monitored closely so items that are about to expire are held and are not sold to your clients.
- Find out the wholesale prices that the drop shipping company offers, and compare these with the prices of other drop shipping companies and product wholesalers. Other drop shipping companies offer higher prices and this will cut your retail profit drastically. It is best to deal with a drop shipping company that offers a lower wholesale price on the products.
- Verify their shipping time by ordering a product yourself and have it delivered to your home. The length of time for them to deliver the product to you will most likely be the time they will be able to deliver to your clients.
- Check out their back order policy. If they run out of product stocks, orders by your clients may be delivered later than expected, so make sure this is clear and there are notification procedures for you to know whether a product is about to be out of stock and it is time for you to notify your clients.
- Check out the drop shipping company’s return policy. You should reflect this refund policy on your online retail store so your clients would know whether they can return a product and in what terms.