I have recently been looking at a slightly different form of affiliate business, that of working with drop shipping suppliers.
Drop shipping suppliers are suppliers who allow you to promote and sell their products in the traditional sense of ecommerce (or other method of trade), you own the website, you promote the website, you control the pricing structures, you receive the orders and you receive the payment. Where it differs is at the point of sale, when you make a sale and receive the payment you pass that sale across to the drop shipper, who will then ship that product to the customer under your name.
This has the great advantage that you do not need to carry stock, but you still purchase the items at a wholesale price and you control all other aspects of the business.
Minefield
I have rapidly found that area, as with many other areas of affiliate business, is a minefield, it is saturated with people who are out to make a quick buck selling databases of drop shipping suppliers. Try yourself for a search on Google for drop shippers, you will find that there are thousands of results of people trying to sell you effectively a contacts database.
Take my advice… Don’t buy them.
Think about it, how have they compiled that database? Well in the same way that you are now looking for a drop shipper, they have searched the web using Google and others.
You are much better off sticking with your search, you will, as I have come across some gems, you will forgive me for keeping these to myself! But persist in the search and you will find what you are looking for.
Basic advice and questions to ask before your start
Some basic advice while looking for your drop shipper.
- Know what you are looking for, don’t search on general terms such as drop shippers be specific.
- In addition to the above, and it seems that this is always the advice, find a niche, a single product, something that you can work a website and a marketing campaign around, something that there is room in the market for your site.
- Be careful when you choose your drop shipper, check out their credentials, don’t be afraid of emailing them with a list of questions. Remember that their creditability affects yours, how quickly will they ship, how much stock do they carry, how will they inform you that your product is out of stock.
- Look at your drop shippers’ wholesale price, look at the competitors prices, is there a margin for your cut? Remember to look at the suppliers shipping costs and compare those to competitors as many people will look at the whole price for the product.
- Where will you sell to? Look at your product and come up with a demographic of the type of people who will buy and where they are. Will you sell internationally? Does your drop shipping supplier ship internationally?
- Consider using an Ebay store to sell and market your product, but remember to take account of the costs.
- Paypal is a very fast growing method of payment; consider using it in your site rather than paying out for a commercial payment gate.
- Remember to indicate in your store that the item will be shipped direct from the supplier.
- Do not use a drop shipper that requires you to pay fees upfront to use their service.
- Consider contacting a company that does not currently drop ship, you may be able to make a private arrangement with them, however remember that for them this may be very new and something that they cannot cope with, be sensitive and careful in your correspondence.
- Check that your drop shipper does not require a minimum order
- Finally, consider buying the product yourself so that you can test and fully review the product, this will make your site and marketing carry a much heavier weight. Remember, Content is king!
