Dropshipping is an attractive model to make an entry into the world of internet business; this is because it ticks off on all criteria for starting an ecommerce business: No inventory cost to worry about, flexible and the opportunity to work from any location, and requires little initial investment – so all of these features make the model an obvious choice for small online store owners.
But it has a little drawback: Your business relied heavily on wholesale dropshipper for order fulfillment. This results in little to no control over how the product is presented to your customers. In some cases, your dropshipper’s name is on the packaging.
To offset this – you would have to do a thorough research and vetting to come up with reliable and trustworthy wholesalers to do business with. However, you’re going to have your hands full with navigating through the shark invested waters of ‘fake’ dropshippers parading to be the real deal.
How then do you differentiate between genuine dropshippers from the imposters? This is what this article aims to answer – provide you with pointers about fake and genuine dropshippers:
They Request for monthly subscription fees – a legitimate wholesaler wouldn’t ask for an ongoing fee just to do business with you. So be on the lookout for ‘wholesalers’ requesting you pay an on-going fees. They’re probably not genuine.
They sell to the public – wholesalers don’t sell to the public, if you caught one selling to the public – they’re probably fake. Here’s a reason to avoid these kinds of suppliers – they undercut you by selling at a lower price to your customers.
Genuine Wholesale droppers are late with their Website – because they don’t sale to the public their online marketing sucks – you’re probably going to find their websites old and outdated with little to no work on seo. However, the fake suppliers are more likely to have modern-looking websites with up-to-date seo; this is because they sell to the public and hence would want to be seen.
Per-order fees – it is important not to confuse a supplier requesting for a per-order fee to one asking for an ongoing fees. Most dropshippers will charge an additional small fee for handling the packaging and delivery of the order. This is industry best practice and shouldn’t be confused with an ongoing fee. However, you can negotiate with the wholesaler to reduce the charges, though this is dependent on the volume of sales you can bring in.
Most legitimate wholesalers will require a proof of business – One of the requirements for signing up with a dropshipping wholesaler is the provision of your proof of business – which includes: company registration details, unique Tax number, and business contact details. This is a sure sign you’re dealing with genuine wholesalers.
To recap, a reliable wholesaler goes a long way in improving and maintaining how your brand is perceived by your customers – remember they handle your order fulfillment and basically are your customer facing front. You don’t want your customer to get a bad impression about you right? Hence carefully scrutinize every wholesaler before committing yourself.