Search:

Drop Shipping, Management Tips To Help You Increase Profits

Have you switched from a non-shipping supplier to a dropship business but found that your business isn't going as well as you hoped?

Well, you aren't alone.

Many eBay traders and online shop owners who have switched to a drop shipping supply chain management system have found that their customers often aren't getting goods on time, items are damaged or different to the ones listed and the sites they are using have been less than honest with them.

This doesn't mean that dropshipping is something you should avoid, but it does mean you can't just sit back and ignore supply chain management completely, there are still things you will need to do to get your dropship performer to meet your expectations.

Stock items guaranteed to make money in a dropshipping system

A surprisingly large number of eBay traders and online store owners stock unprofitable items simply because they like them.

This can be avoided by putting through the item through a simple test. See if it stands up to these simple questions:
Is the item relatively cheap to buy?
Will I be able to put a good mark up on it when I put it on my site?
Is it small and easy to ship?

Things like electronics and perfume fit this mold perfectly. When dealing with electronics you may also find that there is the added bonus of customers always wanting the latest products and upgrading frequently.

Drop products and suppliers that aren't performing well.

Monitoring a large number of things consecutively is difficult at the best of times, this is more so the case with dropship suppliers. It is far too lose focus and let a defective detective product slip through the cracks.

Cutting products on your list won't only eliminate problem items it will also help you focus marketing more.

The process of trimming inventory is fairly easy, all you need to do is to go through records and see what items are giving you trouble. Two places you might want to look are:

Customer correspondence

Inventory lists

Keep in contact your supplier and have an inventory of products

Letting anything run on autopilot in business is always a risky proposal. Drop shipping is a low maintenance supply chain management system but it isn't a no-maintenance supply chain management system.

Regularly go over records from your shopping basket to make sure they are being filled in a timely manner. When there's a problem get in contact with your dropshipper and find out what is going on. They are more likely to take more care of your customers if they can see that you care about them too.

Another security measure you may want to make is to keep a small inventory of goods on hand just in case a shipment is delayed. Good dropshippers will prevent customers being disappointed by things like product cancellations but some things, like the flash price crises in August of last year, can't be planned for. EBay traders who have a small inventory of stock will be able to carry on business regardless but dropship customers who don't risk the wrath of customers left waiting.

You may also want keep an eye on your dropshippers website to make sure the color, appearance or features of items listed on your store have not changed.

Once you have limited your inventory to profitable products, cut problem products and suppliers from your ranks, remained up to date with supply chain developments and kept a small inventory on hand you will find your profits grow and your reputation with customers improves markedly.

Article Source: http://www.dummiesguideto.com

Find out the top mistakes new importers make when sourcing from China - visit www.chinavasion.com today to get YOUR free online course.

Please Rate this Article

Not yet Rated