Set Up Drop Shipping 

Find Drop Shippers and Increase Profits

A popular way for E-commerce businesses to make money is to set up drop shipping. Partnering with a drop shipping supplier can save you money on inventory and storage costs while allowing your customers to have a wide variety of products to choose from.

Another perk is that drop shipping services don’t require you to put a lot of money toward start-up costs. By creating a partnership with a drop shipping supplier that’s willing to ship individual orders, you can easily generate cash flow by featuring the drop shipping products on your business site. There is also no pressure for you to get rid of the products because the unsold items aren’t costing you any money.

There are many E-Commerce companies that use drop shipping services. Once you find the drop shippers you are going to partner with, there are a few more steps to think about. Below are three easy guidelines to successfully set up a drop shipping process for your business:

• Create an advertisement on your business site that features the products you want to sell through your drop shipping supplier. You want to design this ad so it attracts a potential customer’s attention. The advertisement should also provide clear instructions (or a link) that detail how easily this merchandise can be purchased from your business site.
• When a customer does decide to purchase an item, they should be able to do so with their debit or credit card. Setting up a merchant account will allow your customers to use these forms of payment. A merchant account is simply a type of bank account that will allow your business to process payments when a transaction has been made using a credit or debit card. 
• Customer satisfaction should always be a priority. Once the payment is collected it is your responsibility to follow-up with the drop shipping provider to make sure the customer received their purchase. Many companies have a section on their website that allows for customer feedback because this provides added insight into the services and products your business provides.

Deciding which drop shipper to choose can be a difficult task, so we’ve put together a list of five important steps to consider before choosing a drop shipper:

• Timing.  You need to have a clear understanding of how much time it will take for the drop shipper to deliver each product. If a customer is promised that their purchased item will be delivered in three days, it should be delivered to them in three days. If certain items are expected to be delayed because of the holiday season, or for any reason, the customer should be informed of this timing delay up front.
• Shipping Rates.   Most retail items are available to be shipped overnight, two-day mail or standard mail (typically, 4 to 10 business days). There needs to be standard shipping rates for each delivery option. If shipping is evidently overpriced when compared to other online stores, the customer will notice and might choose to shop elsewhere. Try and set average shipping rates to ensure customer satisfaction and this step should add revenue by building a repeat customer base.
• Payment & Tracking.  Your customers might want the option to pay with a business check, money order, debit or credit card. The more options a customer has to make a payment, the more likely they are to pay for an item to be shipped and delivered. Once an item has been shipped, you should be able to track the item and ensure the delivery service is reliable and consistent.
• Return Policy.  If a product is damaged or lost during shipping there should be a return policy that states who is responsible, and in what time frame the item can be returned.
• Confidentiality.  As a good business principle, all of the customer information needs to be confidential. There should be a privacy policy in place so the customer feels assured that all of their information is secure.

Learn More About How to Set Up a Drop Shipping Process

The Tax Club wants to see small businesses succeed and thrive. We encourage you to contact us if you'd like more information on how The Tax Club can help you find drop shippers and set up a drop shipping process.