What are the characteristics of a good drop shipper?

5 replies
  • ECOMMERCE
  • |
I have recently started my first drop shipping site and have learned so much in the process. I think one of the MOST important aspects of whether you become successful or not depends on the manufacturer you use. Right now for my site, I am using two different manufacturers and they each have strengths and weaknesses.

I would say it is just as important as product/keyword research to find a manufacturer with all the strengths:

1. Has great communication (e.g. responds to emails quickly and often, speaks english, ideally same time zone but not mandatory)

2. Has great wholesale prices BELOW what competitive retail price for that product is.

3. Has good inventory (nothing more frustrating than constantly having to refund orders because manufacturer is out of product).

4. Has a good/cheap/easy shipping program - this is what killed me, shipping prices can severely eat into your margins.

5. Reliable (good return policy, acceptable shipping times).


For me, here are the two manufacturers:

Manufacturer A:

1. Communication 3/10. Responds once a day, based in Italy so I don't hear back until 2 am.
2. Wholesale price 9/10. $50 competitive hat wholesales for $15.
3. Inventory 2/10. They have tons of products (900+) but at any given time at least a third of them will be out of stock. I usually have to refund every second order and it is impossible to stay on top of.
4. Shipping 1/10. Ludicrous shipping costs are usually twice as much as the hat wholesale price (pretty much cancels out the great wholesale price).
5. Reliability 5/10. I would not feel comfortable with having to return an order.

Total 20/50

Manufacturer B:

1. Communication 9/10. Responds almost immediately whenever I send an email, speaks great english.
2. Wholesale price 2/10. Their wholesale price is well below their own site's retail price, but is about equal to competitor's retail prices.
3. Inventory 7/10. Mediocre product range, but at least always in stock.
4. Shipping 6/10. Flat rate $15 shipping makes things relatively easy, but when you add that to the very low margin wholesale price, it makes it tough.
5. Reliability 8/10. Nuff said.

Total: 32/50


What have I missed? Can anyone share their insight on what makes a good dropshipper? Is there such thing as one who would have all the strengths and none of the weaknesses?
#characteristics #drop #good #shipper
  • Profile picture of the author SoundsGood
    Where do you find a LEGIT dropshipper? Any time I look all I find is bogus dropshipper directories.
    {{ DiscussionBoard.errors[7396591].message }}
    • Profile picture of the author birclore
      I don't ever search for a 'drop shipper'. For example, if my store sells leather hats from Italy, I will not search for a 'drop shipper' who sells hats. I will just search for a high quality local hat store in Italy who is willing to ship hats directly to my customers. It makes sense for them, it makes sense for me. It's good business.

      Lots of them will not even know what drop shipping is, but it's a simple concept. You basically get a commission for a sale..

      NEVER search specifically for a drop shipper or all you will get are bogus directories of over saturated product.
      {{ DiscussionBoard.errors[7397872].message }}
      • Profile picture of the author atfless
        I think this is great advice! I agree completely. I would add to your list the following:

        1. Quick turn around time
        2. Low drop ship fee, if any
        3. No added fees (handling, or additional shipping)
        4. This one is just an added bonus, but is awesome if you can get it! Find a company that will automatically update their inventory for you daily, either by email, FTP, or using API to update it directly to your site.

        Hope these tips help!

        Originally Posted by birclore View Post

        I don't ever search for a 'drop shipper'. For example, if my store sells leather hats from Italy, I will not search for a 'drop shipper' who sells hats. I will just search for a high quality local hat store in Italy who is willing to ship hats directly to my customers. It makes sense for them, it makes sense for me. It's good business.

        Lots of them will not even know what drop shipping is, but it's a simple concept. You basically get a commission for a sale..

        NEVER search specifically for a drop shipper or all you will get are bogus directories of over saturated product.
        Signature

        Love to meet new people and discuss SEO, CPA Marketing, E-commerce, and much more! Contact me on skype if you want to discuss anything...
        Make Money with CPA Marketing
        Mastering Facebook
        Twitter Genius

        {{ DiscussionBoard.errors[7456304].message }}
  • Profile picture of the author SoundsGood
    I see. Okay, thanks!
    {{ DiscussionBoard.errors[7398919].message }}
  • Profile picture of the author pavv
    I think having a reliable supplier is VERY important. Of all my suppliers I have one favorite and they tick all the boxes, at least 45/50. The store is so easy to run because of this.

    Regarding finding a drop shipper, most won't call themselves that.

    If you're looking for a supplier in any industry (you don't know your niche yet) you can search for '<country> distributor' or '<country> wholesaler'.

    If you know the product then '<product name> distributor' or '<product name> wholesaler'.

    If you know the brand then....you get the idea
    Signature
    Let Me Build Your Ecommerce Store!

    New to eCommerce? Please take a look at my product which teaches you how to find and research a product/niche, then how to build your own store.
    [WSO]I Made $70,689.71 Sales In The Last 31 Days, Let Me Show You How To Do It Too
    {{ DiscussionBoard.errors[7406595].message }}

Trending Topics