Dropshipping

The future for your overall success of your online business relies in your choice for a dropshipping wholesaler.  This is especially important if you are selling products online as an independent businessperson.  Wholesale distribution is vital for the growth of all business involved in the industry, and is even more so if you are in a competitive industry.   
You first step is to compile a list of potential distributors that may or may not work.  You should look online and offline, both in newspaper ads and online listings.  Your next step is to evaluate each company and request a quote or price list.  After you have a visual of the companies, you can then do a pros and cons comparison for each supplier.  Make sure that you inquire about refund policies, late shipping situations, and other shipping information.   
There are 5 steps that you can use to determine which wholesaler will be efficient for your overall business needs: 
1.  Reputation 
The reputation of the company will play a large role in how reliable and honest they will be with you.  If you do not live in the same state or even the same country as the distributor, then it is probably impossible to meet them in person.  Therefore, the only way to determine if their reputation is superb is to review their past history with their previous customers.  If the distributor is in the US, you can check with the Better Business Bureau for information about the company’s previous history and business practices.  Other places to check are in online forums where other business owners can make comments and leave advice.   
2.  Shipping Options 
One of the most important types of shipping involves shipping overseas.  You need to inquire about this with the company before making a commitment.  Even if you are not going to initially ship overseas, this is something to consider and you should have the option to at a later date.   
3.  Pricing 
In order to make a large amount of revenue, you need to have a profit margin.  If you have to pay high fees to the distributor, this will hurt your profits.  However, you should also not choose the cheapest distributor, because this is typically a red flag to their reputation.  You should expect at least a 15% discount off of the normal retail price when you are using a dropshipping wholesaler.   
4.  Payment Choices 
Other than the company’s reputation, you should also find out pricing details.  Inquire as to whether or not you have to pay when a sale is made, or if you can pay monthly or every quarterly.  You should also ask what types of payment options they accept and if there is any type of credit allowances.  After you make a relationship with the supplier, you can always try to re-negotiate the terms of the contract to help save you money.  
5.  Quality of the Products