Assessing the Drop Ship Drawbacks

Although many retailers find that drop ship services provide them with an excellent product sourcing solution, it is by no means a perfect solution. Drop shipping comes with several drawbacks, including the following:

• You lose some control over shipping times, packaging processes, and package branding.
  
• Your supplier may run out of a hot-selling product.
  
• You can't take advantage of bulk discounts.

Things to consider when selecting a distributor for drop shipping (out side of kerpidex):

• Watch out for companies that aren't legitimate wholesalers. (Be suspicious if they don't ask for a tax ID number.)
  
• Be wary of monthly fees. (You should not have to pay to sell their product.)
  
• Online shopping is highly competitive. Optimally, products should be in demand, but not widely available online — what are called niche markets.
  
• Be sure the drop shipper uses a method of shipping, such as FedEx or UPS, that can be tracked. (This is helpful when the customer wants a status on their order.)
  
• Ask about the distributor's policy on defective products and returns. (This always comes up in retail businesses.)