Retailer Tips for Working With Wholesale Drop Shippers

So you’re an online retailer, or considering becoming one, and are looking at the option of using drop shippers — the process of having your wholesale provider ship items directly to your end customer. But you wonder, is it as great as it sounds?
When it comes to drop shipping, it most definitely will have plenty of advantages. But it will also have its mix of problems. As the saying goes, “Every ship of opportunity brings with it plenty of rats.” Drop shipping’s opportunities can seem great thanks to the idea of having someone else burden the costs of warehousing products, but it has its “rats” as well.
Since the customer has already paid for the products, the retailer simply takes the portion that is due to the drop shipper, places the order, and then the drop shipper takes care of the order. The packaging and shipping are all handled by the wholesaler.
In many ways, it’s a win-win relationship for all involved. The wholesaler makes the sale, the retailer never has to order product that hasn’t already been sold, and the customer still gets the product they’ve ordered in the end. However, making money online with drop shippers isn’t all roses and chocolate-covered cherries in every situation for every retailer and wholesaler.
Depending on your particular circumstances and methodology for doing business the drawbacks can, on occasion, outweigh the virtues. Aside from having limited control over packaging and shipping, pricing will be higher for drop shipped items. Additionally, you are often at the mercy of your supplier when it comes to policies regarding returns, warranties, items that arrive damaged, etc.
You’ll want to vet a wholesaler fully before getting into the proverbial bed with them. What is known as “blind drop shipping” is a vital part of working with these types of wholesalers. What this means is that your drop shipper uses your business name on the shipping label rather than your own. The reason for this is obvious. Just imagine ordering something from one company, then receiving it from another. It can cause a lot of confusion and lead a customer to wonder what kind of weird operation you’re running.
However, all things considered retailers — especially new ones — will find that the pros outweigh the cons and discover the joys of handing the hassles of warehousing, packing, and shipping off to someone else a great relief that is well worth the caveats