As an ECA, you would like to list your products using the best way of drop shipping method. Before embarking to this one of the most sought e-commerce solution, you’ll need to know the important “basics” of drop shipping.
The basics and how to get started:
- Before contacting suppliers/wholesalers, you’ll need to be aware of the rules and regulations in your region. In the U.S. most suppliers/wholesalers require your EIN number. EIN stands for Employer Identification Number for tax administration and is not intended for participation in any other activities, such as tax lien auction, lotteries, etc. You’ll need to furnish also a copy of your state sales tax and/or resale certificate.
- Find out what products you’d like to drop ship. There are various ways to find drop shipping wholesalers: Contact the manufacturer, Search Google, includes keywords such as wholesale, distributor, reseller, bulk, warehouse, supplier etc.
When employing drop shipping to make a list for your ECA products the best way, consider the following points:
- Products that can be drop shipped will create a lot of competition. Usually this will lead to cutting down the pricing and will diminish your profit margins. In order to compete by not cutting down the price, you’ll need to offer value through top-notch product education. In other words, pick a profitable niche and add value to it.
- Keeping your inventory up-to-date and avoid getting into out-of-stock items. Work with multiple suppliers with overlapping product lines. It's not recommendable to rely on a single supplier. Having two suppliers doubles the likelihood that an item will be in stock and available for shipment.
- Selling products that you don’t see is not easy. You can get product information online from manufacturers’ websites with products specification or you can opt to call your supplier to answer a specific question about a product from your customers.
- Involving a third party will result in more order fulfillment errors, mistakes, and logistical problems. In drop shipping business, occasional mistakes can happen. Suppliers are fairly good about paying to remedy problems, but when they're not, you need to be willing to spend what's necessary to resolve the issue for your customer. Blaming the supplier/manufacturer for order fulfillment will not solve the problem but you’ll be dubbed as unprofessional and your reputation is going to suffer.
In drop shipping, you’ll need to invest in marketing and customer service. Starting is easy and you can leverage other people’s capital without having to invest in thousands on your own. Keeping in mind the steps and important points mentioned above will lead to your own successful ECA store.
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As an ECA, you would like to list your products using the best way of drop shipping method. Before embarking to this one of the most sought e-commerce solution, you’ll need to know the important “basics” of drop shipping.
The basics and how to get started:
- Before contacting suppliers/wholesalers, you’ll need to be aware of the rules and regulations in your region. In the U.S. most suppliers/wholesalers require your EIN number. EIN stands for Employer Identification
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