A Business Secret Seldom Discussed
By Brad Beiermann Ph.D., Hienote Inc.
The concept of drop shipping is not new, but has found itself in the midst of a growth curve fueled by Internet commerce.
As a retailer, you will put the product pictures on your site at retail pricing and wait for an order.
Drop shipping is a process used by a manufacturer, or authorized wholesale distributor to ship your single item orders directly to your customers. As a retailer, you will put the product pictures on your site at retail pricing and wait for an order. Once you receive an order, you will email or call the drop ship supplier with the customer's order information and they will in turn ship the product directly to your customer. Consider two things: Tracking and Returns.
Tracking
Most customers want to get parcel tracking information about the products they order. If you are a new retailer, eBayer, or you are thinking about doing online retailing, you will have a customer who will ask for tracking information. If you give the tracking information, it will have your supplier's address information on it. What will you do if you are using a blind drop shipper for the order? The first option would be to give the tracking information, thus letting the customer know the identity of the supplier. If it is a no-repeat customer, this might work in your favor. The second option is to implement a policy of not giving out tracking information. It simplifies things and sets boundaries with your customers. A third option is offering the tracking information and describing the shipping origin differently when asked. You might describe the shipping origin as your "remote warehouse" or "distribution center" reserved for returns.
Returns
What happens when you get a customer who wants to return something for an exchange? If your policy is to not give out tracking information, then as far as they know, the package came from your location. Unlike a return address, the main label address will need a valid recipient name when they send the package back for exchange. In short, if you want to keep your supplier concealed, then you will need to have the packaged returned back to your location. Later on, you can return this back to your supplier. In this scenario, you will have paid twice for shipping, but it keeps your wholesale source concealed. HBM
Brad Beiermann Ph.D., is President of Hienote Inc., which specializes in product sourcing, exhibition marketing, and assisting small businesses locate wholesale drop shipping companies. Visit http://www.hienote.com. Get a FREE copy of "Starting Your Online Retail Niche With Drop Shipping" at http://www.hienotedirectory.com/drop_shipping_ebook.htmhttp://www.hienot... V19-3 Add: 7/12 Car: 7/19/12 HP:
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