Wholesale dropshipping is an art form at times. In order to be successful, one of the best things that you can do for your business is to research common mistakes of other drop shippers have in general and how they promote the profitability of your business. Retails have one major advantage over drop shippers they tend to have lower prices on all the latest and greatest items. When your dropshipping, you can’t compete on the most popular items. Although, when doing wholesale dropshipping it’s completely different than consumer based dropshipping.
This is especially true when it comes to locating closeout and liquidation companies to source your products from. Without a solid foundation, your business is likely to fall apart before you even start. However, there are numerous other common mistakes of wholesale drop shipping that business owners should be aware of, especially when it comes to sourcing products and developing valuable business strategies for a company.
There are many mistakes more advance drop shippers do daily, so if you’re new to dripshipping don’t worry. We’re all going to make mistakes as business owners. However, we will help go through some steps to avoid these common mistakes many ecommmerce dropshipper are having today. Trust us, we’re closeout buyers as well, so we see tons of clients that have failed in their business.
Don’t be Fooled by the Wholesale Dropshipping Middlemen
Perhaps one of the most prominent mistakes that many drop shippers make is in their choice of suppliers. Just as closeout and liquidation companies are the middleman between sellers and potential buyers, there are also middlemen when it comes to finding a dropshipping supplier for your merchandise.
When you make this mistake, you cost your company money that doesn’t have to be spent. Additionally, this middleman may include their company logo in various pieces of packaging, meaning that your customers will think that the merchandise came from a source other than you. Of course, this can be problematic when it comes to building a loyal customer following.
Don’t Assume Anything When It Comes to Services
Many wholesale dropshippers make the mistake of assuming that suppliers will fulfill each order as it comes. In all reality, many suppliers require a minimum quantity each month, meaning that you won’t have an agreement with any closeout or liquidation companies until you agree to meet this monthly minimum. Andrew from Ecommerce Fuel talks about this too.
Also, some companies charge you a monthly fee for you to use their products images, or to have access to their product list, even though they make money with each sale you make. In addition, you shouldn’t assume that you will be guaranteed the same services as other wholesalers, especially if you don’t order in bulk from suppliers each time you place a wholesale dropshipping order that needs fulfillment.
Never Base Your Entire Business Around Just One Supplier
Perhaps one of the most costly mistakes that you can make when it comes to finding a wholesale dropshipping supplier is relying on just one company to handle all of your needs. Working with just one company means that if they are ever out of stock on a popular product, you’re in a predicament when it comes to fulfilling orders.
Therefore, it is important to maintain good working relationships with many different companies, particularly if they all have stock in products that you sell on a regular basis. This can help you rest assured that no matter what you need fulfilled, you will have a source to go to that can help you manage your wholesale dropshipping orders.
Avoid Common Mistakes and Make Your Business More Successful in Less Time
Regardless of whether you’re just beginning your wholesale business or if your company has been in operation for years, it is important to recognize the common mistakes of wholesale dropshipping to help make your business more profitable in less time.
If you follow the tips provided above, you’ll be well on your way to creating a wholesale dropshipping company that avoids mistakes and is therefore more successful than you could have ever imagined.