Dropshipping is one of the most popular business models in the present era of e-commerce. Since time is money hence we save your time by mentioning the key indicators to look for while choosing the best dropshipping suppliers who will enable you to provide best dropshipping services to your customers.

WHAT IS DROPSHIPPING?

A large number of entrepreneurs these days are involved in drop shipping making dropshipping a very valuable business model in e-commerce. Before going further in this blog let’s first get to know what actually is the basis of the dropshipping model. Dropshipping is actually a business model that provides relief to the retailers from the headache of stocking and shipping. In the dropshipping model, the retailers need not actually purchase the inventory, instead they use their contacts with suppliers to deliver the stock to the end customer.

However, the key in this business is to search for and then select the best dropshipping suppliers for your business. A supplier holds the central position in the model of dropshipping hence for a successful dropshipping business it is necessary that the retailers have the best dropshipping suppliers in hand who provide them with the best dropshipping service for their business.

WHAT ARE THE BENEFITS OF DROPSHIPPING

There must be some huge benefits associated with this model of dropshipping that’s why it is the center of attention for a large number of emerging entrepreneurs. As stated before, a major benefit of dropshipping is that you do not need to stock a large pile of inventory which may result in a loss of capital if ample orders are not placed. All you need is an online presence in the form of a store where you can even purchase a single item upfront from the manufacturer directly when a customer places an order. Again, when the customer places the order the price will be paid already by the customer so the supplier need not invest any capital for the purchase of the stock. Rest left is the shipping and delivery which is the responsibility of the supplier. This is the reason why so much importance is given to the selection of the best dropshipping suppliers so that the retailers would be able to provide the best dropshipping service.

WHAT DO YOU MEAN BY A DROPSHIPPING SUPPLIER

We have been talking about the best dropshipping supplier for quite some time here. Now let’s clarify the concept of a dropshipping supplier as well. In simple and straightforward words, the one who provides the best dropshipping services is considered to be the best dropshipping supplier. No doubt a dropshipping supplier holds the central position in this business model. Dropshipping supplier is an organization or can be an agency that is responsible for manufacturing, stocking, and delivering/shipping the product to the customers directly. It is actually the dropshipping supplier who sells the product to the customer one by one and remains undercover. The retailer stays at the front by taking the order first from the customer through its online store and then taking care of the customer’s queries. It is in fact the combined effort of both the retailer and the dropshipping supplier that create the outcome of a happy and satisfied customer. Hence to keep your customers happy and provide them with the best dropshipping service you need to first build strong contacts with the best dropshipping supplier.

WHAT ARE THE INDICATORS OF A GOOD SUPPLIER FOR DROPSHIPPING AND FULFILLMENT

We have conducted thorough research and collected the following indicators which indicate the performance of a good dropshipping supplier. So, if you are a retailer and looking for the best dropshipping supplier for your business then you should look for the following factors in your supplier:

1-PRICE OFFERED BY THE SUPPLIER

If as a retailer or online store owner you want to maximize your profit and reduce your costs to a minimum then you have to pay attention to the prices offered to you by the supplier. Like every other business model, dropshipping revolves around the core goal of making money through selling products. What makes it different from the rest of the models is that you don’t have to own the products before putting them on sale. Hence you need to devise an effective pricing strategy where you have to keep in mind the costs of taxes, marketing, consumer psychology, and perceived value by the customers. Among all these factors product cost is the most important factor in pricing strategy.

Hence the best dropshipping supplier for your business will be the one who offers you a low cost of the product. In this way, you will be able to increase your profit margin by selling the product at a higher price.

2-WHERE IS THE SUPPLIER LOCATED

Location is the key. In order to make sure that the product is delivered as soon as possible to the customer it is mandatory for the retailer to choose a supplier whose warehouse is located inside or nearest to the target country. When you select a dropshipping supplier that is near to the target country or located locally then you have two benefits from it. First that the shipping time of the product is reduced and second that the returns of the product could be handled more conveniently.

3-WHAT SHIPPING COST IS THE SUPPLIER OFFERING YOU

Nowadays we are living in a fast-paced world. The delay means losses. Hence it is mandatory for the business to deliver what they have promised and that too before the patience of their customers comes to an end. This is why low shipping costs are so important in the dropshipping business model. Shipping time is the core indicator of a good drop shipping business. In fact, less shipping time is the factor that determines the best dropshipping supplier. Fast shipping is the best and if you fail to deliver your products timely and faster than sadly there is not much left.

4-WHAT PRODUCT CATALOG DOES THE SUPPLIER HAVE

Not only the price but also the quality of the product determines the reliability of a good dropshipping supplier. A key feature of a good dropshipping supplier is that it delivers what it promises and shows. There are some suppliers who despite showing good quality product images deliver low-quality products. As a result of which the retailers lose customers and face increased product returns. Hence the best dropshipping supplier will deliver exactly the same product it has in images or as a sample.

5-WHAT INTEGRATION OPTIONS DOES THE SUPPLIER OFFER

It is very important to take into consideration the integration options the supplier is offering to the retailer. In most of the integration options when an online store is integrated with the dropshipping supplier, the supplier automatically keeps track of the orders tracking and inventory available. Suppliers can be connected to online stores through APIs, Apps or plug-ins.

SUMMARIZE

Retailers in their quest to provide the best dropshipping services should look for the before mentioned characteristics while selecting their suppliers. Open communication with the supplier and reliability both help the retailers deliver the customer what they are promised. It should always be remembered that the supplier is the nucleus of the dropshipping business model.