Business

How Dropship Companies Can Help Your Bottom Line

Comments Off on How Dropship Companies Can Help Your Bottom Line 19 January 2011

Normally, wholesalers who are dropship companies will pack and ship orders to your customers and use your name and return address. This makes it appear that you are the only shipper involved. By doing so, the wholesaler’s identity is disguised, eliminating any possibility that the recipient will try to place future orders with your supplier instead of you.

Accepting drop-shipped orders can offer you the opportunity to increase sales. Should a customer be in search of an item you do not stock or currently do not have in inventory, you do not necessarily lose the sale. You can offer to have the product shipped directly to the customer, which makes it more convenient for him.

You should have some type of catalog available that has pictures and specifications for the items. You may be able to obtain one from your wholesaler. You can also create your own catalog that combines items from all of your suppliers. Many customers are uncomfortable ordering an item sight unseen. A catalog lets them actually see what they are buying.

If you are like most retailers, you have neither the room nor the money to carry every product offered by a supplier. You may have to keep inventory restricted to only products that offer a large profit or that will sell very quickly. For example, you may have a fountain store that sells indoor styles. Occasionally, however, a customer drops in who is looking for an outdoor garden style. If you can order what he wants, you may gain a repeat customer as well as a sale.

Having your supplier ship the order directly to your customer reduces his wait. Normally, you would have the order delivered to you. You might have to repackage the item before sending it on to the recipient. Your customer can have his product from 2 to 5 days sooner, depending on which method of shipping is chosen and the distance from the point of origin.

Drop orders usually result in savings on the cost of shipping. You typically have freight charges involved in getting the product from the supplier and then again when you send it forward. Additionally, volume shippers often receive better rates than you can obtain from the private freight carriers.

Some dropship companies have no minimum requirements for shipments you want sent directly to your customers. Even some wholesalers who assess a minimum order size when you purchase product for stock will waive the minimum requirements for drop-shipped orders. Locating supplier with liberal order policies can help you convince customers to special order as well as increasing profits for you.

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