If you’re selling on Amazon (or are ready to take the plunge), there is more than one way to skin a cat. One of those ways is to link up with a drop shipping company, which allows you to act as the middleman between manufacturers and retailers. Neat, eh? And as usual, RepricerExpress has all the best dope on how to make it happen.
Tip 1: Use the Googles
If you know how to use it correctly and efficiently, Google can be one of your most powerful weapons in the fight to source reliable and profitable drop shipping companies. The key here is the onus is on you to be smart and efficient in your Googling, as drop shipping companies are pretty bad at making their presence known. After all, if they were better, they wouldn’t need you, the middleman, as much. Just be patient and search through pages and pages, i.e. don’t stop after the first or second, but keep going past the fifth, and even into double digits.
Tip 2: Trying Reaching out Directly to Manufacturers
If Google isn’t being particularly kind to you, then why not just email the manufacturer themselves? Email them and say you’re interested in selling Product X of theirs and do they know of authorized distributors who can work out a drop shipping deal with you. Remember, a manufacturer’s main goal is to maximise sales, so if you tell them you want to make them money, all the smart ones will try and find a way to make that happen.
Tip 3: Sign up to Lists and Directories
Imagine you’re a PR rep for a second. If you’re trying to assemble a roster for a movie premier party, you’ll need access to a directory of names that can both make the party happen and fill the guest list.
The same goes for when you’re trying to find drop shipping companies. This can save you oodles of time in trying to find legit drop shipping companies yourself, especially if you’re not sure if the company is reliable or not. One downside is the directories themselves may be of cheap quality, so if you stick to something like World Wide Brands, you can cut right to the chase.
Tip 4: Make Sure You’ve Got a Legal Business Going
If you want to work with good drop shipping companies, you have to make sure you’re a good business yourself. For example, in the United States, legal drop shipping companies can’t/won’t work with you if you don’t have an Employer Identification Number (EIN), and possibly a sales tax ID depending on the state you’re selling in.
While the process of creating a legal business itself is pretty short and simple, finding out the best corporate structure for you can be a bit tricky. Unless you’re well versed in business legalese, book a meeting with an accountant and a lawyer. You might not enjoy spending those fees, but if it means you can separate yourself from the chaff and make higher profits overall, consider it an investment in your business (and potentially a tax write-off, too?)
Tip 5: Understand How Drop Shipping Fees Work
Lastly, when you’re trying to find a good drop shipping company to work with, you’ll need to know how fees work. We’re simplifying this a bit, but if you encounter a drop shipping company that tries to charge you a regular monthly ‘service’ fee, stay away. This is a shady practice and should be a huge red flag.
But if you notice drop shipping companies including the following types of fees, then you’re probably okay to start building a long and trusting relationship:
- Order Fees: Drop shipping companies usually (but not always) charge fees per order so they can cover their own expenses when it comes to shipping and handling. It’s quite similar to Amazon sellers listing shipping and handling fees separately, versus working them into product prices and offering ‘free’ shipping.
- Minimum Orders: While not exactly a fee, some drop shipping companies will require you to purchase an order of a minimum size or price. If you don’t, they’ll charge you a fee. Don’t be alarmed; this is just their way of weeding out the casual merchants who don’t want consistent business, as one-offers usually translate to a hassle (as opposed to regular orderers who can be depended upon).
Woo-hoo! You’ve found a coterie of drop shipping companies you can work with, have everything all set up, and are ready to go. All you need is RepricerExpress to take care of the fiddly bits for you, especially if you do some non-drop shipping on the side. And when you sign up now, you get the first 15 days entirely for free!
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