Drop shipping is become one of the hottest topic in the e-commerce market, it requires lower capital requirement and inventory pressure which is welcomed by most of online retailers. Therefore, drop shipper is the parties that providing merchandises and products for retailers who want to do drop shipping business. It is believe that drop shippers should have a large number of merchandises in the stock for supplying, and trustable logistic services. In this post, I’m gonna introduce Chinabrands as example to evaluate what is a reliable drop shipper.
What is a reliable drop shipper?
As we know that there are a bunch of global jewelry dropshippers from the world, and it should require retailers to have a standard for the drop shipper evaluation. In this part, I’m gonna introduce Chinabrands as example to make a brief comparison with ordinary drop shippers, in order to shows how to select a reliable drop shipper.
Pros:
a. Large number of products in the stock for selling. It is believe that a large number of products in the stock for selling is the key for retailers to make profits for drop shipping business. Drop shippers should make sure that all the products selling online are in the stock, that should be helpful for strengthen the store or brand images among end-customers. Moreover, the large number of products also allows end-customers to make a wider range of consumption.
b. Multiple choices for safely logistic services. As we know that logistic is one the most important part for product delivery. Moreover, multiple choices provided by drop shipper should be much more quicker and effective for delivering products for end-customers.
c. Training courses. Most of drop shippers is able to provide free training courses for their members such as store statistics analysis, store promotion and advertisement. Moreover, they also provide drop shipping guidebooks for members to figure out how to do drop shipping business worldwide. A reliable drop shippers should provides available helps for their members, but not only providing merchandises or products.
d. Technical support. It is possible to understand that technical support is also a significant factor for evaluate a drop shipper if is worth cooperate with or not. A reliable drop shipper should provides strong technical supports to their members as much as possible because it can help a lot to do daily operation.
Cons:
a. Lower profit margin. As we know that the profit margin is quite low by compared to other business model, even it has lower costs requirement. Therefore, retailers need to figure out how to increase the sales which can deal with the lower profit margin.
b. Poor communication between retailers and end-customers. As we know that laptop dropshippers should carry the order fulfillment instead of retailers, which means retailers may have not chances to directly communicate with their customers. It is not good for retailers to collect any feedback or suggestion from end-customers, and also negative for business improvement.