Tips for Starting Your Dropshipping Business


If you are looking for a business model that can bring you easy money? Well, finding a good dropshipping wholesaler can be a great step in the right direction. But what is dropshipping?

Essentially, dropshipping means that you are selling products products that are completely warehoused and fulfilled by a third party. You find a distributor to work with, place products they offer up for sale with a profit on your site, or sites like eBay, etc. When the customer orders, the product needs to then be ordered from the vendor, this happens manually by you or automatically from your website if you are using something like Shopify or WooCommerce. The distribution company then ships the items out to the people who bought them through you, you pay the fee to the distributor and keep the profit.

This is a nearly flawless system because it means you don’t need to worry about storing the products, about fulfillment or about manufacturing. There’s not even an up front investment! At the same time though, the company you’re selling your items through will remain quiet and unseen and you’ll get all the credit for selling the items through your own store.

But that doesn’t mean there’s nothing that can go wrong. And it doesn’t mean you should abandon all caution. Here are some tips that will help you ensure your new business venture goes smoothly…

Be Aware of Fake Dropship Companies

There are some companies out there posing as dropshipping companies that aren’t the real deal. These companies will often buy the products from wholesalers and then dropship them to you! That means that you’re paying an inflated price which will hurt your bottom line as well as your turnover.

One thing to be careful of is companies that also sell to the general public. Another warning sign is that the company is asking for a recurring monthly fee. Real companies don’t do this!

Know What to Expect


That said, you may still have to jump through some hoops when setting up with a legitimate partner. One issue is that they might require proof that you’re really a reseller – otherwise they might be worried you’re just a commercial customer looking for the best possible deal.

Something else they might require is a minimum preorder. This is to avoid wasting time with companies that will do a lot of talking but then never pass on any significant business. This isn’t great if you’re trying to avoid upfront investment but it may be a necessary evil. To avoid having lots of inventory lying around though, ask them if they can use it to set up some credit with their store.

Check the Quality

Never sell products from your site blind! Not only will your customers be unhappy but it can also damage your reputation and prevent them from buying from you again in future. Always ask to see at least one example of the product first that you can check over and speak to a representative about what quality control measures they have in place to avoid problems!

Choose the Right Product

Of course it’s also rather important that you buy the right stock! This will vary depending on your industry of course but a good place to start is by looking for something that solves a simple and concise problem that your customers have. This will be easy for you to communicate and explain, which makes it an ideal place to start if you’re opening up a new store!

Hope these tips help you when thinking about getting started in a dropshipping business!