Dropship Daemon

Dropshipping & Wholesaling tips , tricks and lessons

A back order occurs when you mistakenly sell an item that is out of stock. The dropshipper must order more inventory from the manufacturer before it will be able to fill the order for the item you have sold. This rarely makes for a happy customer. The best way to handle back orders is to avoid them. Make sure an item is in good supply before you ever place a sale on eBay to sell the item.

If you do run into a back order situation, handle the problem quickly and professionally.

Contact your customer and tell him that the item has proved to be so popular that it sold out faster than you expected. Offer to back order the item, replace it with a similar item, or refund their money immediately.

Do not try to wiggle your way out of a refund if the customer asks for one. You are the seller and it is up to you to make things right. Do so quickly, politely and professionally.

Keep in mind that your eBay feedback rating might be negatively affected if you don’t take care of the situation as quickly as possible.

Inevitably you will have a customer who wants to return a product for one reason or another. This is why it’s so important that you know the return policy of the dropshipper before attempting to sell an item.

Most dropshippers have a return policy that allows the customer to return an undamaged item within a certain amount of time. There is usually a restocking fee involved, but the customer does get back most of the purchase price. Also remember that your customer will come back to you for the return, not the dropshipper. As with back orders you should be proactive and respond immediately to your customer’s request.

It may be that the dropshipper will not accept the return. It then becomes your decision as to how to handle it. If the customer has a valid reason to return the item, work out the return with them on your own. If the product is in good condition you can just sell it again.

If the customer has used the product and wants to return it in an un-sellable condition, you should refuse the return or negotiate a reduced refund amount.

That depends on a number of factors, including your budget, the amount of space you have to store inventory, and the amount of time you want to devote to your business.

The advantages of buying merchandise from a wholesaler are:

  • You will find a wider range of products and get lower prices. Most dropshippers get their goods from the same wholesalers you can do business with.
  • It is easier to develop a relationship with a wholesale company since most will assign a sales rep to your account.

The disadvantages of buying merchandise from a wholesaler are:

  • Most require a business license and tax ID.
  • Most will not dropship for you. All purchases are shipped to you.
  • Most will not sell you one item at a time. You will be required to purchase by the case, the pallet, or even the truckload.
  • Most have minimum purchase requirements, i.e. a minimum order of $200 or 12 cases, etc.
  • If you buy in bulk you will need a place to store your inventory
  • You must handle shipping yourself.

While it appears that there are more disadvantages than advantages to doing business directly with a wholesaler, the opposite is actually true.

The fact that you can get a better selection and lower prices far outweighs the disadvantages, but again, this decision should be based on your particular situation.

Many sellers are building good, profitable businesses without ever signing on directly with a wholesaler. You can, too.

Dropshipping is a method of selling and distributing goods wherein the distributor or supplier of the product (the dropshipper) sends the product directly to the end user (your customer) on the retailer’s behalf (that’s you).

The process of dropshipping is relatively simple. It involves three parties who take a product from manufacturing to market.

Let’s use a blue widget as a sample product to demonstrate the process:

  • The blue widget manufacturer: This is the company that manufactures the blue widgets.  This widget manufacturer does not sell directly to the public or supply the retailers who ultimately sell the blue widgets to the end user.  They prefer to use distributors to handle the task of taking their blue widgets to market.  The manufacturer sells blue widgets by the truckload to distributors and charges $5 per blue widget.
  • The blue widget distributor (dropshipper): This is the company that purchases blue widgets in bulk from the manufacturer and supplies them to resellers and retailers at a cost of $7 each. The distributor does not ship blue widgets to the retailer, but fills orders on the retailer’s behalf as the retailer sells the widgets to its customers.
  • The blue widget retailer: This is the company that sells blue widgets to the public.  In this example YOU are the blue widget retailer.  The retailer orders the blue widgets from the distributor as they are sold (usually one at a time) and has the distributor ship the blue widget directly to its customer.  The retailer sells blue widgets to the public for $10 each, which means that for every blue widget sold the retailer nets $3.

Note: It is not unusual for the manufacturer and distributor to be one and the same.

also read , advantages of dropshipping

For a comprehensive list of dropshippers with more than 100,000 products  ,  visit the dropshippers list

Tons of Wholesale Dropshippers ,Just verified Dropshipping Wholesalers just @ DropshipDaemon.com

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