Drop Shipping - What To Look For - What To Lookout For

Hard facts and insights from an experienced drop shipper that will help any entrepreneur from beginner to seasoned veteran.

True drop shipping is defined by only three (3) players.

1- The CONSUMER or final purchaser of the product

2- The RETAILER who markets, advertises and accepts payment for the product from the consumer or final purchaser.

3- The DROP SHIPPER who ships the product for the retailer to the consumer or final purchaser.

Let's look at each player. We will assume that we all know the consumer but retailers take many forms. Some are brick and mortar stores, catalog companies, designers, decorators, specifiers and others are internet based.

Retailers bear the expense, time and creativity to show, market, advertise, price, sell and collect payment for a product. Upon selling and collecting payment for an item, the retailer then sends an order for the item to the drop shipper and the drop shipper ships the item to the consumer. The drop shipper collects the wholesale price payment from the retailer.

Drop shippers generally have no relationship or contact with the consumer other than shipping the merchandise to them. Sometimes a product may be shipped with the retailers name on it. This is called private labeling. There can be numerous variables and special arrangements between the retailer and the drop shipper. Visually the basic relationship in drop shipping is a triangular one.

Retailers should look for products to sell that are direct from the factory or as close to factory direct as they can possibly get. Just one middleman can cause the final retail price to be too high. Today the consumer is able to price compare with great efficiency and speed. The retail price can make or break the retailer with that same speed and efficiency.

Retailers should most definitely look for products that are unique. Not cutesy unique but truly unique as in rare or 1 of a kind. This sets you apart from other retailers and allows you to markup your item for a greater profit. I know this is a tough one to research but it is the most important part of retailing today. Just look around you, everyone seems to be selling the same things ! You may spend more time on this than any other aspect of drop shipping but you are mining for gold. When you find that unique manufacturer with truly unique products then you can begin to file your gold claim.

Look for drop shippers who have a 100% quality satisfaction guarantee with money back. Look for drop shippers who are comfortable working with a retailer of your size and position. Look for drop shippers who have a firm grasp of their inventory and who can always ship what you sell. Look for drop shippers who are responsive and eager to work with you.

Look out for drop shippers that pass themselves off as manufacturers when they are a 2nd or 3rd tier middleman. Do some research about the company and know with whom you are dealing. Markets are too efficient to support many markups and you will not be competitive with your prices. Look out for drop shippers who are vague about inventory and shipping times. Look out for situations that sound to good to be true. They are.

Finding a good drop shipper is a lot like finding a marriage partner. You need good compatibility, good communications and someone who cares about and is willing to work with you.

Stay clear of drop shippers who charge fees, dues, or memberships of any kind ! This is a major red flag for someone posing as a drop shipper. True drop shippers make their profits by simply selling their products and not from extraneous charges.

Good luck !

Biography: Since 1979 Jim Hoyle has owned and operated Lamp Outlet - North Carolina's Most Exclusive Unique Table Lamps, Floor Lamps, Antique Lamps, Tiffany Lamps and Hurricane Lamps. Jim designs and manufactures fine cast metal table lamps and floor lamps and collects, sells, repairs and restores and appraises antique lamps from special acquisitions and estates worldwide. His company also specializes in lamp and home decor factory buyouts and warehouse closings. All comments and questions are answered personally: junguljim@bellsouth.net. His company's website contains a wealth of free information about lamps and lighting: www.hoylelamps.com. Visit his store personally at 2233 East Main Street, Lincolnton, North Carolina about 25 minutes from Charlotte.