Drop shipping is an easy and effective way to build your own companys profits without having the inventory in your home. With drop shipping, you act as the liaison between the customer and the manufacture. However, the customer does not know you call in their orders to another company.
They believe they are getting their orders straight from you. Even though this is a great resource to practice, there are seven common mistakes with drop shipping products that you need to be aware of in order to prevent problems.
1. Choosing the wrong drop shipper that you are going into business with is a common mistakes with drop shipping products. If the manufacture makes a mistakes, it's not on them, it's on you.
2. You are the fall guy the customers will blame if something goes wrong with their order. The customer does not know you are ordering through another company. So if they never receive their order, or if the factory messes up an order, you are the person who will be hearing about it.
3. There is a higher possibility that you are selling a scammed product. Only part with your money if you are confident that the manufacture will process the order for your customer.
4. A common mistake with drop shipping products is that you do not know the condition of the inventory. You do not get a say in the manufacture's inventory, how much they hold, and when they send out that product.
5. You cannot tell a customer when their product will arrive because you have no control when the manufacture sends it out.
6. Wholesale pricing can affect your profit margins for your company. You have the ability to charge your customer whatever price they are willing to pay, but you do not control how much the manufacture charges you for the product.
7. Drop shippers do not always keep up to date inventory or accounts and this can affect if your customer will get their product.
These are common mistakes with drop shipping products you need to be aware of when you are establishing the type of online business that use drop shippers for your customer's products. Knowing the manufacture is important before you take someones money.
If you do not trust the company, do not use it and prevent these mistakes with drop shipping products from occurring. You need to stay active with your business and your manufactures records in order to keep mistakes with drop shipping products from occurring. Here is some additional information on Drop Shipping Wholesalers you may find helpful.
Best Practices Report