A lot has been said and written about what a great business model drop shipping is. Drop shipping is a business model in which you sell products to your customers while a third-party supplier takes care of the stocking and shipping of the products.
It’s especially good for a home-based business because you don’t have to carry any inventory. That makes it relatively easy to test a market without investing in a whole lot of inventory.
Are there any downsides to the drop-ship business model?
Delivery problems are one downside to a drop-ship business. Whenever there is a delivery issue, it reflects badly on your business. That’s because in a drop-ship business, the shipping supplier is transparent to the customer and the customer will think you’re doing the shipping. In fact, many drop-ship suppliers actually put your business name as a return address on the packages.
Delivery problems can come in many forms, but the most common are short shipments and incorrect addressing. With short shipments, your customer might order three of something, pay for three, but only get two from your drop-ship supplier. Incorrect addressing is a problem in which the drop-ship supplier just plain botches the shipping address and the package ends up going somewhere else or becomes just plain undeliverable.
How can you avoid these problems?
- Find a drop-ship supplier who causes few of these issues. Test out a supplier when you’re first starting out with them by ordering something you know you can sell. How do they do with the test order? Were the delivery times and order fulfillment satisfactory?
- Ask potential drop-ship partners how they will correct problems such as short shipments. Will they replace the short shipment expeditiously or will they make you fill out a claim form and take lots of time to investigate it?
Occasional problems will happen with even the best drop-ship supplier. The big question is how the supplier will correct those problems.
To find quality drop-ship suppliers, try the Worldwide Brands OneSource. It gives you access to hundreds of suppliers that have been pre-qualified by Worldwide Brands!