Some questions when running a drop shipping business:
Do Most Drop Shippers Provide Customer Service To My Customers?
The answer to that question is no, they do not. You are the retailer, and it is your responsibility to deal with all customer problems. You have to keep your website up to date and deal with any problems that your customers are having. Your role is that of an intermediary between the customer and the supplier.
How Are Orders Submitted To The Suppliers?
Every wholesaler is going to have a different process. However, most accept their orders through email or phone. There are many wholesalers who have a complete website ready to take your orders 24 hours a day. Depending on the size of the wholesaler, they may even allow you to submit a bulk order through an XML or CSV spreadsheet.
How Long Does It Take For An Order To Be Filled?
Again this all depends on the individual wholesaler and their location. The vast majority of wholesalers are able to get any orders out the same day as long as they receive it by noon their time.
Where Do I Get Tracking Information?
This type of information is also dependent on the drop shipper. The vast majority of drop shippers will email you the tracking numbers or supply them to you in a CSV file. You should receive your tracking information as soon as the shipment has been processed or at the very least at the end of the business day. Once you have the tracking number, you should then send it directly to your customer unless you have software that is designed to do that.
You can always tell a drop shipper is not of high quality if they do not send your tracking information as soon as possible or always have delays.
How Do I Pay The Supplier?
In order to get your first order shipped, you will need to have a credit card to complete the order. You may want to get a business credit card that features the Mastercard or Visa symbol. Also, be aware that a large number of suppliers will not accept American Express or Discover cards.
Once you have a solid relationship with your supplier you may be able to request a ‘Net 15’ or ‘Net 30’ term. This is quite simply an extension of credit that must be paid within a specific time frame. At the end of the 15 or 30 day period, you pay whatever you owe.
You are typically better off paying with a credit card as opposed to the ‘Net’ terms. Credit cards are more convenient and you do not have to waste precious time writing and mailing checks. In addition, you generally get more favorable terms and rewards with credit cards. In fact, if your business really prospers you may be able to use your bonus points to take some very exotic trips.
You may want to read “Wholesalers And Drop Shipping Companies” if you wish to know more about drop shipping.