Practical eCommerce

tcraw1010

I am just about ready to start approaching Drop Shipping Companies about selling various products and such. What I wanted to know, and was hoping to gather some advice/insught about from those with experience, is what to say to them.how to approach them as a NEW venture.

Should I have my website online/available for them to see first?

Is there a helpful "standard pitch" to use in describing a store and/or how the Drop Shipper can/will benefit from starting a relationship with me?

Any online resources available on how to approach this kind of thing?

THANK YOU for any advice/insight you can provide.

bgetting · **Date:** Tue Jun 20, 2006 11:38 am **Subject:** Good question

I don't have enough experience in this area, but I think that this is a great question. I would say that you would want to have your website operational before you approach them, or at least have a very comprehensive and finalized strategy to present to them.

I'm interested to hear what people have experienced with this. Thanks for the great question.

beley · **Date:** Wed Jun 21, 2006 9:49 pm **Subject:**

Well, I've dealt with drop shippers and traditional manufacturer/distributors and my advice is to know who you're talking to. If you call a genuine drop shipper, they usually don't really care what you do or if you have a website yet. They'll send you out some information and accept an application, because they want your money.

That said, if you contact major distributors or manufacturers of products, they'll often times put you through a rigorous account setup process that includes reviewing your website, checking your credit, etc. Many traditional distributors/manufacturers will not drop-ship though.

Check out www.worldwidebrands.com for a good directory of drop shippers (and if you're interested in warehousing your own products, they have lists of light bulk and bulk wholesalers also). I've purchased these lists and they have some good quality drop shippers listed. Most of the drop shippers you'll find on the Internet by Googling are scam artists... so beware. They charge astronomical fees and usually only give a 20% discount (or less) off the "retail" prices (which are also heavily inflated).

I think having a website functional when you start applying to drop shippers is a bit optimistic, considering you need products to have a website. But, I think that having some good information - maybe a placeholder - is a good idea. And having a brief overview of your company, including the products you wish to sell, your target customers, etc. is a good idea. Some drop shippers only allow a few select merchants and they screen applicants, but they're in the minority.

tcraw1010 · **Date:** Thu Jun 22, 2006 11:34 am **Subject:**

Thanks Brandon.

I actually am a subscriber to Worldwide Brands and have had the Drop-Ship Directory for some time. I've just been wondering whether or not I should have something online for them to see prior to my contacting them. You provided some useful advice though, and I appreciate it.

Trouble is, it's taking me a bit longer that (probably) standard to get my site designed - since I'm doing it myself. (Fighting between the "anxiously wanting to launch" vs. "taking the time to make sure I create the best website I can.") Wink

gsaunders

Worry less about having a "pretty" site and more about getting it online. Once you've got the basic "skeleton" you can pretty it up as you go, but in the meantime, you'll be getting indexed by the search engines and have something to show potential suppliers, and you can start generating sales.

You will need to have a resale certificate and credit references. Most companies will want you to pay up front for the first order, and you may have to meet an order minimum, usually between $150-$1000 for your first order. Most drop shippers will charge a small handling fee per order, and the prices may be slightly higher than wholesale. Once you have one company on board, others will be easierto get because you will have a reference.

If you can go to a tradeshow, you will make many more useful contacts than you will find online. It's very hard to find true wholesale and drop ship companies online (Worldwide Brands is the only reputable online source that I have found for drop shipping and light bulk with the exception of Skip-something-or-other who writes an eBay Sellers Newsletter) and usually has a list of 5-10 sources at the end of each one.

I should also add that you need to very carefully review the companies you want to use to ship your products. You will be at the mercy of their shipping department and their manufacturing process. You will want to provide your customers with accurate information about estimated shipping times, shipping services, inventory levels, etc. I have been burned more than once when an item that was supposed to have been in stock took much longer than expected to deliver. Especially around the holiday season when customers want their orders fast,fast,fast you need to know the policies of your suppliers and make sure they can deliver. Also know as much as you can about the quality of the merchandise. It's your reputation that will suffer if they provide less than stellar delivery service or shoddy products.

beley · **Date:** Tue Jul 04, 2006 10:41 pm **Subject:**

I have to agree... you can tweak and perfect a site until you're blue in the face. I come from a graphics background, and have to just force myself to step back and say "DONE!"

It's better to get the site online and making orders; you can come back later and tweak the design/content when you actually have real metrics to look at.

mbettis@pec · **Date:** Mon Jul 10, 2006 4:30 pm **Subject:**

You may have seen this since you're familiar with WorldWide Brands. Chris posts on his site how he approaches suppliers for their directory. I've pasted a clip below that is his 'script' he uses with manufacturing companies. There's more good information about vetting companies at http://www.worldwidebrands.com/wwb/whatisproductsourcing.asp

You may have seen our series on product sourcing and drop shipping in the June issue of Practical eCommerce. There may be some tips here that can be of assistance.
http://www.practicalecommerce.com/issues.php

"Here�s how I do it: I say,

�This is Chris Malta, of Worldwide Brands, in Orlando, Florida. I�m planning to Retail your products, and I was hoping you could give me a list of your Authorized Wholesale Suppliers that I can contact�.

Almost every time, they tell me �Sure, no problem!� They�ll give me the names and contact info for a number of their Wholesalers. They don�t mind, because they�re helping their Wholesalers gain new clients, which means they do more business as a manufacturer!

And there you have it. No worries about Middlemen. I went right to the source, and got the correct information in one phone call."

beley · **Date:** Mon Jul 10, 2006 4:36 pm **Subject:**

Yeah, I always recommend going direclty to the manufacturer to find potential wholesalers/dropshippers for products first. If you have few products, you can sometimes find all the information with just a few phone calls.

Unfortunately, many wholesalers have pretty steep opening orders, require you to inventory your own product (won't drop ship) and some have restrictions on whether they can sign up internet only businesses. Those are just a few problems we've run into over the years, but they are not hard to overcome.

I like the WWB drop ship directory because everyone in there drop ships. I don't have to waste time trying to find someone, I just ask what the wholesale prices and details for ordering are.

tcraw1010 · **Date:** Tue Jul 11, 2006 10:02 am **Subject:**

Fosufa · **Date:** Wed Sep 06, 2006 2:11 am **Subject:**

Where you get it???

mbettis@pec · **Date:** Wed Sep 06, 2006 6:12 am **Subject:**

You can learn more (and purhcase if you want) about the Drop Ship Directory at www.worldwidebrands.com.

turkish · **Date:** Mon Oct 09, 2006 11:51 am **Subject:**

[quote="beley"]I have to agree... you can tweak and perfect a site until you're blue in the face. I come from a graphics background, and have to just force myself to step back and say "DONE!"

It's better to get the site online and making orders; you can come back later and tweak the design/content when you actually have real metrics to look at.[/quote]

i so second that... i second that... I second that...

dropshipping... most important yes know who you are talking to and even most important realize that you are talking to normal people just like you. Well, in some cases. I've over stepped assistants and connected with owners, CEOs and account managers. To be honest this is not recommended and for me it was just meant to happen that way... i don't believe in coincidence and mistakes... everything happens for a reason... I would say just do it! you have nothing to lose, just do it!

People often make the mistake of developing their site before getting the green light from a manufacturer. DO NOT DO THIS! I was told that if you can't get the manufacturer, then ask for a distributer, if that doesn't work then get creative and consider private labeling products that they manufacture.. this means more money for them regardless of competition...

sorry in a rush, excuse my spelling...

have a good one...

pacerbfl · **Date:** Tue Nov 14, 2006 10:09 am **Subject:** Drop Shippers

Much appreciation for the information in this thread about Drop Shippers and timing the publishing of the website. This is most helpful to me. I am in the same situation as the originator of this subject.

Any suggestions on choosing a product line? So many product areas appear saturated with websites selling their wares.

pacerbfl

tcraw1010 · **Date:** Thu Nov 16, 2006 11:50 am **Subject:** Re: Drop Shippers

neoverve · **Date:** Mon Jan 15, 2007 6:46 pm **Subject:** Heard good things

I have heard good things about Doba. They bring wholesalers all together in one place and let you cherry pick their stuff to sell in your store. Pretty cool service, though I have not used it myself.

http://www.doba.com/

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