As a business owner you have probably entertained the thought of using a dropshipper. But which dropshipper would you choose? How do you know what to look for and what questions should you ask? Here are 12 questions that will help you select a dropshipper to fit your business’ needs:

1. How long has the drop shipper been in business?
   You do not want to choose a dropshipper that is new to the business because there is a good chance that they could grow too quickly and end up sinking themselves. Having to then find a new dropshipper will leave you with a gap in order fulfillment and could potentially damage your business.
2. Who is the dropshipper using for shipping?
   Make sure that the dropshipper you choose is using one of the “big guys”- not a small no-name shipping company.
3. Will the dropshipper ship internationally?
   It may not be important to you to ship internationally but you should certainly know where your products will be able to go before you begin to sell them across the globe.
4. Who else is using the dropshipper?
   Get an idea of who else is using the dropshipper in question and figure out where your company falls in the mix. You don’t want your company to be the biggest client your dropshipper has because then they may not understand your needs adequately. Conversely, you don’t want to be the small-fry because if you have a problem, your needs will almost certainly be on the bottom of the list.
5. Can the dropshipper offer custom packing slips?
   Being able to customize your packing slips ensures that you are in control of your business after the purchase is complete. You’ll want to have the flexibility to offer things like coupon codes or a customer service phone number on your packing slips as you see fit.
6. Will the dropshipper send out order notification emails?
   If your dropshipper will send order notification emails, that is one less thing you will have to worry about when processing orders. This can be a huge time saver and since time is money, adds real value to the service.
7. What is the dropshipper’s return policy?
   Returns are where some droppers fall flat. Make sure that your dropshipper will not charge you through the nose in order to process returns, and that they will be able to update their records so you do not have to eat the cost of the returned merchandise.
8. What kind of reporting will you have access to from the dropshipper?
   Some dropshippers only report once a month on the amount of merchandise sold. Other dropshippers will send that information more frequently or make it accessible for you to view online. Decide which system will be most convenient for your business needs.
9. How much will you be paying exactly?
   Many dropshippers will have only per order fees, but there are some out there that will also charge a “participation fee,” which can greatly drive up the overall cost for that dropshipper.
10. Are you getting the best rates?
    Once you have the rates for a particular dropshipper, Don’t just compare them to other dropshippers you are considering. Also compare them to industry averages that you can find online or get from fellow e-tailers.
11. How will you be charged? What are the payment terms?
    In the beginning, it’s likely that you will not be able to get charges debited directly from your debit account/charged to your business credit card but if you inquire, you may be given more flexible payment options after a certain period of time or a specific number of orders.
12. What do the reviews say?
    It’s good to talk to the company and get as much information as you can, but a company will never give you the dirt that current and former customers will. Go online to find out what people are saying about the dropshipper. If your questions haven’t already been answered online through reviews, forums, social media, etc. don’t be afraid to ask.

After you have answers to all of these questions you will be able to make an informed decision about which dropshipper to choose, increasing your business’ chances of succeeding online!

Additional Resources:
Drop Shipping Guide- Tips, Companies, Resources and Directories
Configuring Auto-Dropshipping with Volusion

-Kate Pierce eCommerce Specialist

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