Locating Genuine Dropshippers – Negotiating The Pitfalls

Dropshipping is the preferred business model that most upcoming retailers prefer using because of the many advantages it offers them. A dropshipper stocks a variety of merchandize and sells their products to retailers. As an online retailer using a dropshipping business model, you are spared the risk and inconvenience of stocking and handling merchandize, finding a place to keep the goods and employing people for packaging and shipping out the goods to your customers.

A professional dropshipper can help you become a stockless retailer because they ship the merchandize directly to your customers. Your customers won’t suspect a thing because the invoice will be drawn in the name of your company and the packaging will carry your labels and logo. It is a cost effective and hassle-free way of becoming an online retail entrepreneur. New retailers can get into business with minimum investment upfront using the dropship supply model.

Why Using Dropshippers is Advantageous yet Risky

Finding a good dropshipper is one of the toughest challenges that a retailer faces. There are thousands of resources available online which promise to help you set up your business smoothly and quickly. Some of these are genuine but many are scams. They are just trying to get their hands on your money. Dropship scams are common in the industry. That is why you must choose dropshippers from reliable and trusted sources.

There are a few precautions that you must take to not land in a trap. Do not deal with websites that claim to have thousands of products for you to sell. Dropshippers are in business to make money just as you are. They will not waste their resources on products that move too slowly out of their shelves. A genuine dropshipper will have a fair amount of merchandize and will be holding physical stocks of the same. Others are just middlemen who source supplies from diverse wholesalers and sell you the same products with a higher mark up to make a profit at your expense.

Be Wary of Middlemen as They Can Dilute Your Profits

If you suspect a long line of distribution, you can be sure that it is a middleman posing as a dropshipper. As the line grows longer, your profit margin becomes thinner because everyone will squeeze out their margins. This leaves you with a high priced product that offers little scope for making decent profits. Make sure that you deal with genuine dropshippers who source products directly from the manufacturers.

Coping with out of stock situation is another major headache for online retailers. It can be a cause of acute embarrassment when you find that the product you just sold to your customer is no longer available with your dropshipper. It can affect your professional reputation and earn you negative reviews. You can lose hundreds of potential customers because of such reviews. Genuine dropshippers will update you on their inventory position frequently so that you do not land in such situations.

Using trade directory services such as wholesaledeals.co.uk is a safe and assured way of finding 100 percent verified and genuine dropshippers. They allow listing of verified suppliers with excellent performance record. You can subscribe to their plans to access the best UK dropshippers and wholesale suppliers.

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