Business

KEY QUESTIONS TO ASK A POTENTIAL DROPSHIPPING SUPPLIER

Getting the best dropshipping supplier for your business is not an easy task, given that there are thousands of drop shippers on the internet. So, how are you supposed to determine the best drop shipper for you? Whether you will be talking to them on the phone, email, or one on one, it is best to prepare some questions to ask them. The following questions help you learn more about the supplier to make the right decision.

What is the dropshipping price, and is it negotiable?

Even if you have checked the dropshipping price on the supplier’s website, it is vital to ask the question to get a clear picture of what they charge and negotiate for a better deal. Also, remember to ask if there are any other costs besides what is stipulated on their website. Some dropshipping suppliers will charge duties on imported goods, fuel surcharges, delivery fees, restocking fees for returns, etc. You must know what to expect beforehand.

Is there a subscription fee?

You may be expected to pay a monthly subscription fee to work with a specific dropshipping company. Or you may have to pay membership fees. Ensure you talk to the sales rep to understand why they charge these fees. If the reasons sound honest, it probably is honest. But do your research and see how it affects the bottom line of your business first.

Do you sell directly to the public?

You may have come across some suppliers that claim to be wholesalers, and yet they sell their products directly to the public at retail prices. That is enough proof that the supplier is not a wholesaler and thus not a suitable dropshipping supplier.

Note that true wholesale pricing is not offered to the general public, so you don’t want to work with a supplier who does that. If the supplier is selling to the consumers directly, it means they are your biggest competitor who makes the business more challenging for you.

What is the return policy?

Everyone is prone to err, and sometimes customers order the wrong products, or the supplier can accidentally ship the faulty items. Enquire about the return policy and what to expect whenever your customer needs to return specific items. You want to know how the dropshipping supplier handles such situations to see if you can work with them.

What is my expected gross margin?

Gross margin is the sale you make when you sell the products minus the price of the items. Even if you are setting your prices for the products, the supplier should be able to tell you what the other sellers are making on average. That helps you determine if the business is favorable to you or not.

When might the prices change?

Some products do not have constant prices in the market. The prices may depend on the demand and supply. However, others have stable prices. It is uncommon for your supplier to spring a price change on you out of nowhere which can be very detrimental to your dropshipping business. It is essential to know when this might happen in the future before you partner with the supplier.

The last words

Ensure you ask all the critical questions beforehand to know what to expect when you do business with the dropshipping supplier.

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