How to negotiate the best deal with dropshipping providers
Posted On July 1, 2023
always ask the question
The first rule of trading is that you should always try to do it. Don’t just accept the first price dropshippers give you, ask if it’s negotiable. These providers are companies and they are used to the question, so you are not going to bother anyone. If the price of your drop shipping products is not open to negotiation, they will tell you soon; But if you don’t ask, you’ll never know.
To be professional
When you have found a dropshipping provider that you are ready to deal with, you need to make sure that you are professional and deal with them in a business-like manner. Make your case for why you think they should give you a better deal, explain how much business it could bring them if you can get the price right. Of course, this is easier to do once you’re established, and you shouldn’t lie to get a better deal, but you should give the provider a reason to show flexibility.
order larger quantities
Ask about a discount for ordering your dropship products in bulk. One of the benefits of using dropshippers is that they usually don’t have a minimum order, and you only have to pay them once you’ve sold an item, but ordering in bulk up front might get you a better deal. You can ask them to hold your shares and ship them as you sell them. Alternatively, have it all shipped to you and ship it yourself as you sell it; you also need to pay lower shipping fees in this way.
Do not focus only on the price
When negotiating, don’t just focus on the price of your drop shipping products. There are other parts of the deal where the dropshipping provider could be more flexible, which could still benefit you. For example, they can extend their payment terms so that you only pay at the end of the month, instead of every order, or they can offer faster shipping for their customers. Getting a discounted price for your drop shipping products is great, but consider the rest of the deal, too.
Make sure they’re both happy
Negotiating isn’t just about getting the lowest possible price from your dropshippers, you need to make sure the deal works for both of you. If you can get them to commit to too low a price, they may cut corners elsewhere, like a less reliable shipping option, to make some money back. Real negotiation is about finding a good deal for all parties.
Finally, once you’ve negotiated a good deal with your dropshipping provider, be sure to review the agreement regularly. Don’t view negotiation as something you only do once. The economic climate is constantly changing, so make sure you’re always looking for ways to improve the dealings you have with your suppliers.
Negotiation doesn’t come naturally to everyone, but it is an important part of running a successful business. You should always be looking to negotiate the best deal for you and your dropshipping provider; that way, your relationship will grow, along with your earnings.