How to Reduce Risks for Dropshipping Suppliers

Posted by Benjamin Meskin on Nov 7, 2018 5:17:30 PM
Benjamin Meskin


Dropshipping services are essential to the retail industry, especially when it comes to small business who don’t have enough space to store all their inventory. 


Because of these services, small business owners can start selling a broad range of products without having a single item in their local inventory. Dropshipping companies can help businesses of all shapes and sizes sell worthwhile products to customers all over the globe, regardless of how much warehouse space they may have.


This can help merchants save on their storage costs and allow them to offer wholesale pricing to their customers. Dropshipping suppliers help to keep the costs down for both manufacturers and suppliers in the retail industry. That helps consumers find the products that they need easily since they are available from more online merchants.


One of the primary disadvantages associated with dropshippers is the fact that merchants never see or handle the products that they sell when using this type of service. This can be a great risk for online store owners because they are unaware of the condition the product is in once it leaves the wholesale supplier.


Top 3 Things All Dropshipping Suppliers Need to Know


If you own a dropshipping business, it’s important that you understand how shipping services work both in the United States and Internationally.


Here are a few useful tips that all dropshipping suppliers should know whether you have owned your business for years or are just starting out.


1. Partner with a Shipping Carrier


To start a reliable dropshipping business and guarantee that you get the product directly to your customer, you need to team up with a shipping carrier who meets your specific shipping needs.


Most carriers will offer worldwide shipping options, which will make your company more useful to online merchants. There are a few things you will need to think about before you partner with a shipping carrier, such as:


  • What are their rates?
  • Their coverage area
  • Fees
  • Package size limits
  • Minimum order details
  • Policies
  • Tracking or Mapping tools


Shipping carriers that you should consider working with include UPS, USPS, FedEx and DHL. You can also check out an online supplier directory for more shipping carrier options.


2. Obtain a Good Shipping Insurance Service


When you take on the task of shipping a product for a merchant to their customer, you are faced with many risks.


The process of getting a product from the wholesale central location to the customer’s residence can be very difficult. These products may travel by land, air, or sea to reach their final destination. It is up to you to guarantee that it arrives safely. To do this, you will need reliable shipping insurance that will protect if the worst should happen.


Choosing an insurance provider that can cover the cost of losses along with damage is your best option. There are many different shipping insurance companies out there, and they all offer various services and levels of protection.


It is best to do some research before you decide which shipping provider to choose. That way you will know which company offers the best coverage to suit your needs at the best rate.


3. Understand the Importance of Quality Packaging


Most merchants put a lot of thought and value into their packaging and its presentation. If you are a dropshipping provider, however, you take on the role of packaging the products for the merchants you serve. That means you need to choose the correct materials for packaging the products you ship, making them presentable and keeping them safe.


You should find supplies for shipping that are lightweight and protective. Doing so is important when packaging any product to help keep your shipping costs low while also maintaining the products inside safe and secure.


How Dropshipping Suppliers Can Keep Their Merchant Customers Happy


A dropship company offers an excellent service to retail merchants, but it all comes with a price.


Sometimes due to the risk involved, dropshipping business owners must deal with scrutiny from their customers. Since the merchant never sees the items they sell, they have no way of knowing if the item is high quality or not. And once the customer receives the product, if they are unhappy with their purchase, the merchant will receive backlash because of it.


That backlash is then directed to your drop shipping business.


It’s an obvious issue that all dropshipping suppliers must face. But it doesn’t have to be as damaging to your company’s reputation as it may seem. There are things that you can do to help soften the blow when a customer has an issue with the products they receive. One solution to the problem is to purchase shipping insurance to product all shipments.


How Shipping Insurance Can Help Reduce Costs for Dropshipping Suppliers


Shipping insurance from a reliable and dependable company like Cabrella can help to reduce your shipping risks significantly. This insurance will cover the cost of any loss or damage to the package once it reaches the customer. The customer can file a claim and choose to replace their damaged goods or receive a refund. Plus, Cabrella insures to over 180 countries to make sure no matter where your shipment is headed, it will be safe.


Investing in a great shipping insurance service will help to save your company from countless negative reviews and will also let merchants know that they are working with a dropshipping supplier who will take excellent care of their products to sell.


Cabrella Shipping Insurance can save you up to 90% in rates as opposed to other carriers. Click the button below to see how much you could save with Cabrella!




Subscribe to Email Updates