The cost of Dropshipping is determined by the drop shipper. It is very important for you to know the cost of Dropshipping before you start Dropshipping.
You need to thoroughly research and look for companies that offer Dropshipping services. Some wholesale companies as you no doubt know will not drop ship for you. There are others who will drop ship for an additional fee. It will enhance your bottom line if you find a company that’ll drop ship at no cost other than shipping and the cost of the merchandise.
Some companies will charge a small membership fee at the beginning nevertheless this membership fee will be given back to you after you have made a certain number of purchases.
If you sign up with a company that charges a monthly fee you could end up giving away your profit for a month or two. You need to know all the costs of Dropshipping so you can accurately calculate your profit. Be sure you get an itemized list of expenses from your Dropshipper.
You need to know the cost of the item, the charge for shipping, and taxes if any. Be reminded that some states charged an additional tax on purchases. If you are paying a monthly fee to a Dropshipper you have to also prorate that fee into the total cost.
Remember there are always scams lurking to take advantage of beginners and others in any situation.
You can always check with the Better Business Bureau to see if there have been complaints about the business dealings of any one of the Dropshippers you find.
Check with your Dropshipper also to see how your account will be calculated. It is important to know whether you will be charged piece by piece or whether you will be charged on a monthly timetable. Find out if the company accepts returns or what the return policy is.
If the company does not accept returns, then you may have to factor into your records a loss for that month.
So that you will be able to adequately determine the cost for Dropshipping, get all this information in writing before you start working with a company. Drop shipping can be a very efficient way to start a business it can enhance the bottom line of any business but you need to know all the facts up front before you start.
Even more so you need to let your customers know the return policy because eventually, this can define your bottom line.
Don’t forget to get the company’s policy for damaged merchandise. Some companies will accept returns on damaged merchandise and some companies will not accept returns on damaged merchandise.
Wholesalers that dropship sometimes are reluctant to accept merchandise that has been opened and damaged. So make sure you get in writing the policy the company will adhere to for damaged merchandise that has been opened.
Damage merchandise that the company will not accept as a return will be part of your Dropshipping cost on the bottom.