The world of dropshipping is often seen as the easiest way to sell products online. The biggest difference between dropshipping and the standard retail model is that the seller does not have his own inventory in stock when it comes to dropshipping. Instead, the trader buys inventory from a third party as needed - usually dropshipping wholesalers or manufacturers - to fulfill orders.
Find a dropshipping supplier
A number of different strategies can work for you, and some are more effective than others. The following methods are listed in order of effectiveness and preference, with my preferred methods listed first:
Contact the manufacturer
This is my preferred method of finding legal wholesale suppliers. If you know the products you want to sell, call the manufacturer and ask for a list of their wholesalers. You can then contact these wholesalers to see if they leave the ship and inquire about setting up an account
Since most wholesalers sell products from a wide range of manufacturers, this strategy allows you to quickly obtain a selection of products within the niche you are studying. After a few calls to the leading manufacturers in a niche, you will quickly be able to identify the leading wholesalers in this market.
Pro & Con's from dropshipping
Using a certified wholesaler, the DropShips, is an inexpensive solution for people who work from home, don't have money for inventory, and want to sell products online. Dropshipping works and it works very well, but you have to be careful with a few things. best dropshipping tools
First, you can't just sell every product you want and expect to be able to compete with drop shipping. When you ship a product, you buy and sell one thing at a time. This means that your wholesale price is for a product when you have delivered it.
Wholesalers always offer discounts to traders when buying in bulk. This means that your wholesale price for a product (drop shipping) may be higher than a competitor buying volume from the wholesaler, which means that you can sell that product much cheaper than you, and in some cases, even cheaper than your wholesale Costs!
How does dropshipping work?
You need to be able to choose the right products to sell the right products. You cannot assume that just because you may think that a product is a "good idea to sell" you should get into that product.
You need to find the products that you can get by direct mail and that you can compete within the current online market. Before you start selling, you need to do a little market research so that you can prove successful Shopify drop shipper.
The advantages of dropshipping:
- You don't have to buy or store inventory- Very low start-up costs
- Simply add or change your product offerings
The disadvantages of dropshipping:
- Not all wholesalers offer a drop shipping
- The wholesale prices are based on only one product
- Must spend time to find the right products to sell
Find good dropshippers
It is difficult to find certified dropshipping companies and it is almost impossible to search for "drop shipper" online without getting into hundreds of scammers and middlemen. Most of the results you find online are companies that claim to be drop shippers, but they are nowhere near the quality and price you get from working with real drop shippers. It is important to be patient when looking for a dropship company. Certified drop shippers do not charge setup fees or monthly fees. So if you stumble upon your search for a company that claims to be a "drop shipper" or drop-ship website and requires a setup fee, monthly fee, or annual fee, that's an instant red signal. Dropshipping can be confusing, especially when dealing with fraudsters. Here is a list of 10 tips for finding a wholesaler.
1. Understand the sales channels in your industry
There are many ways to move a product from the manufacturer to the retailer. Not all wholesalers serve the same market. Knowing the distribution channels in your industry and knowing where to fit in the supply chain can help you find the right wholesale supplier for your retail or online business. The different types of wholesalers include.Manufacturer: For some products, you can buy directly from the manufacturer. This is basically what a "boutique" store does - buys from small (sometimes one person) manufacturers.
Importer / Exclusive Distributor: In some industries, a company may have the right to import and distribute a product in a particular country. Some can sell directly to retailers but are more likely to start or sell to smaller local wholesalers.
Wholesaler / Regional Distributor: There are typically regional drop shipping wholesalers who deliver the bulk of received covered wagons, break them open and sell truck boxes of products to local wholesalers.
Jobbers, "car dealers": These people deliver daily to local grocers and retail stores.
Each product industry has its own unique sales channel. Some retailers will move enough volume to bypass jobbers, or perhaps in a smaller industry, importers will sell directly to retailers.
When you start you will buy from the smaller wholesalers at higher prices. As your volume increases, you will be able to get better prices and / or move delivery managers to a larger wholesaler.
2. Try the manufacturer first
You may as well start at the source. If you sell branded items, contact the product manufacturer directly. They can sell you depending on the minimum order quantity.
If you are too small for them or only sell through established sales channels, ask them for a list of distributors you can contact. By starting at the source (the manufacturer) you can either get the lowest prices or at least get a list of the most reputable distributors to start your search.
The fewer people you have to go through, the lower your costs will be and you can be more competitive in the market.
3. Have a productive first contact with a drop shipping supplier
Take the list of wholesalers you got from the manufacturer and start contacting everyone. What you are looking for is the minimum order quantity and their wholesale prices.
To get the best answers, be honest about what you're looking for (don't try to sound "bigger" than yourself), keep your emails short and to the point, and be friendly. You can also consider picking up the phone to make first calls or to continue with the people you sent your introductory emails to.
4. Try to find dropshipping wholesalers on Google
As mentioned earlier, you can start your preliminary research with some basic Google search terms. If you dig deeper into your research, you will likely learn more about the products you are looking for.
Run Google using the terms "wholesale" or "distribution partner" and some keywords from your products or niche. Try out product names, model numbers, and brand names. Go through each result and look for the "Wholesale Account" link or an email address or phone number where you can get more information.
In the rare event that the information is difficult to find or not readily available, you could do a WHOIS search to find the website's contact information. dropshipping
5. Look for wholesale lots on eBay
If everything else fails, some retailers or small wholesalers will sell the bulk of your product on eBay. Since eBay mainly targets end-users, the wholesale options you will find here are usually only for very small retailers.But if you're just starting out, eBay might be the easy place to start, you have to dip your toes in e-commerce and start shipping your product.
6. Check major B2B marketplaces
from Alibaba which is the largest of all B2B marketplaces for manufacturers, importers, and wholesalers. Other B2B marketplaces include Global Sources (USA), Buyers Zone (USA), EC21 (Korea), EC Plaza (Korea) and Busy Trade (Hong Kong).7. Join industry groups, forums, and other professional networks
Other retailers are not keen to share supplier information with competitors, so it will take some networking to find the best possible wholesale suppliers for your small business.Start building relationships with industry insiders and eventually you will be one of those insiders. Participate in online forums, build your LinkedIn profile and start building connections. Subscribe to industry newsletters and build your professional network.
8. Subscribe to all specialist publications in your industry
Receive all magazines or newsletters aimed at retailers in your industry. Every advertiser in the magazine will be a product manufacturer or distributor who wants to reach you.
You should have a few dozen options from the ads on the back of the magazine. Subscribe to all online newsletters, blogs and other sources of information that are available to you.
9. Visit a trade fair
Attending trade shows is one of the most powerful ways to build and expand your business. These events are just like you for retailers. When you can speak face to face with manufacturers and wholesalers, it avoids all the noise of inaccurate information that can plague the web.
The largest directory of trade fairs is at tsnn.com. You can search for a trade show by industry, date, city, state or country and / or by event name.
10. Don't be afraid to make a mistake
Your first wholesaler may not be your lifelong seller. Developing your perfect supply chain is an evolution that involves a lot of trial and error. Remember, all you need from your first supplier is a product that you can ship profitably.It may not be the best wholesale price for you, but don't sweat it in the beginning. Your first goal is to get your product shipped. Then you can improve your bottom line by trying other wholesale suppliers.
0 Comments