Which Supplier To Use To Fulfil An Order
Part 8 saw me speak about managing your stock inventory - catch up to learn more about it. We also offered a few inventory management services, such as Linnworks, or even Storefeeder as a suggestion to work with.
In our previous Dropshipping Best Practices guide I spoke about how best to protect yourself if your dropship supplier has ran out of the stock you need. You do this by working with multiple suppliers. This will eliminate the need to have to offer a refund, or create a huge delay in shipping.
Having multiple suppliers does bring a great deal of benefits to your dropship business, however it does get to a point where you need to decide which supplier to use when fulfilling orders.
There are 3 main key factors to focus on when deciding which supplier to use to fulfil an order, and these are:
Location: If you want to ensure quicker delivery and save on shipping fees you may opt to choose a supplier that is closer to your customer/s to fulfil an order.
Availability: If a customer orders a lot of items of which are spread over multiple suppliers this can become very expensive in shipping. That’s why it’s recommended if you have a niche product, then use a single supplier (unless your supplier has all the stock you want your store to sell), otherwise ensure all of your suppliers supply the same niche product in case of one not having the stock.
Pricing: It can be difficult to determine which one of your suppliers will be the cheapest, though once you figure that out this too is an option many merchants go for. However, you’ll need to consider fees such as Shipping, VAT, Dropship & Customs (if required), type of product and so on. Relying on a cheaper product because it saves you money may actually see you spend a lot more over time on other factors.
As long as you ask whether these fees are already included in the stock price then you can have a much better idea of which supplier to use instead of relying on price alone to determine which supplier to use to fulfil an order.
Remember, finding the way that works for you will be the right way. Again, we cannot tell you what to do, or how to do it, but we can guide you.