Jun
Finding A Supplier For Your Online Business
Now that you’ve had a chance to determine if you want to stock your own product or use a dropshipper you need to find a list of suppliers and decide whom to use.
Rule # 1
True wholesalers and dropshippers do not charge a membership fee. If a site you are considering wants a monthly, annual or one time membership fee you will not be dealing directly the supplier but a middleman who places the orders with a true supplier.
A true wholesaler or dropshipper makes their money on the sale not by a membership fee. While it’s true some dropshippers do charge a per order dropship fee, (usually on a couple of dollars per order not per item), they only charge this fee when an order is placed. In other words they only make money when you make money. (Assuming you don’t underprice your product).
Rule # 2
A good dropshipper will never market to your customers directly and/or behind your back. A good dropshipper will never display their own name and will only place your company’s name on packing slips, invoices and shipping notices.
I’ve helped several people get their websites up and going and purchased products from various individuals who use dropshippers. Here’s some of the things I’ve seen that you want to avoid.
- Packing slips that include the name, address, phone and website of the dropshipper/manufacturer.
- Invoices that reveal your cost to the customer.
- E-mails and/or newsletters from the supplier after having placed an order with an independent website.
Rule # 3
Place a test order.
It’s the only way to find out if a supplier is acting in your best interest. Find a friend who will allow you to ship an item to their house. Place the order but use an e-mail address that you have access too and then inspect the package when it arrives.
Not only can you check the paperwork included in the package (or lack thereof), you’ll also see how fast the supplier ships an order, how carefully it is packaged and the actual quality of the products you plan to sell.
Also watch the e-mail address you used when you placed the order to see if you start receiving any e-mails from the supplier that are gear toward marketing direct to the consumer. Lastly ask your friend to let you know if they receive anything in the mail from the supplier.
Finding A Supplier
There are basically two ways of finding a supplier. Searching the search engines and using a provider source. There are many companies out there that will provide you with a list of dropshippers for a fee.
The best list provider that we’ve found is One Source from WorldWide Brands. Worldwide Brands mission is to research dropshippers, light bulk wholesalers, large volume wholesalers and liquidation sellers. They then use the information gathered to provide a comprehensive list of quality, reliable suppliers.
In addition their service includes a market research tool that analyzes a keyword phrase for search volume, competition, paid advertising and auction pricing and returns result indicating the degree of success you may have targeting that phrase. This is a paid service but it’s a one time only fee and they have different pricing levels depending on your needs.
Searching The Search Engines
The second method is searching the search engines. This can be a little tricky as if you just search for “RC Helicopter Dropshipper” you will most likely find more services offering a list of dropshippers rather than true dropshippers of RC Helicopters.
So I recommend using Google as your search engine because of a little feature at the bottom of the search results page call “Search Within Results” In the main search box type the type of products that you are planning to sell.
- RC Helicopters
- Gift Baskets
- Party Supplies
- Home Decor
- Furniture
- Toys
- Software
Once you have the list it provides scroll the bottom of the page and click “Search Within Results” and wait for the next page to display. Now type in dropship, dropshipper, wholesale, etc and it will only return results from the type of product that you plan to sell that include the extra term you specified. You can also search within these result a second time and add more specific terms. Each time you do so you narrow the list down to more specifically what you are looking for.
I’ve used both methods and while searching the search engines is more time consuming and research intensive it can provide just as good as results as using a list provider.
Take Action
Remember the key to success is in proper planning and research but don’t over analyze the situation either. Planning must be combined with action.
“Small Steps Done Are Better Than Great Steps Planned”
So get out there do some searching, do some research and planning but also remember to make the necessary phone calls, send the e-mails, get a feel for how the supplier responds and how you are treated. If they don’t treat you well when you are trying to become a customer you can bet it won’t be any better once you are a customer.
When making the contacts remember to keep it professional. Introduce yourself in a professional manner, “Hello, my name is Lawrence Piper from MLC Enterprises and I’d like to discuss the details necessary in adding your products to our online store.” If you have your website already live and they ask for the domain by all means give it to them. If you haven’t, be honest and let them know you are in the research phase.
Take note how you’re treated. A good supplier realizes that online marketing is in it’s infancy and the market is continuing to expand and new business are being started on a daily basis. If they seem rude or impatient it may be best to look at other options.
If you have any questions or comments please leave them below and I will make sure to answer them.
