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So, you've just started a dropshipping business, and you already have two or more suppliers for your niche. Great!!! (Though I wouldn't suggest it! Keep reading.)
However, how do you manage both of their shipments? Also, how do you explain it to your customers?
I'll answer all these questions in this blog post. So, let's not waste any time and get started!
An Example of Having Multiple Dropshipping Vendors
So, you're delivering iPhones and Android phones (which I wouldn't recommend, but this is just an example). Apple's iPhones and Android phones are both available for purchase in your store.
A client places an order for one of each. So, what happens next?
Your customer will get two different packages from Apple and the manufacturer of the Android phone company. They may happen on separate days, but it's also possible that they'll happen on the same day.
Is it a problem if a customer receives many packages at different times?
In the year 2021? No.
People have become used to getting several shipments on separate days, especially with the help of massive markets like Amazon and eBay.
Today's article will go over dropship supply management best practices and how to handle more than one dropship provider successfully in two stages. Steps to assist you in simplifying your dropship company and reducing the danger of losing money and damaging your online store's reputation while dealing with two or more dropshipping sellers.
Step 1: Get Your Multiple Dropshipping Sellers Business Up and Running
The first step is to take preventive measures to ensure that you are prepared for any availability problems that may arise, allowing you to adapt swiftly.
1. Check Out Dropshipping Best Sellers
You must first do thorough research before selecting these suppliers. Because there are so many fraudulent suppliers out there, you need to be careful who you choose for your dropshipping company.
Any availability or supply problems will be eliminated if you vet your providers before ordering from them. Having a primary source and at least a few backup providers for the goods you offer are preferable. All you need to do now is vet them and make sure they're up to the task. Also, ensure that the goods of the providers are similar so that you may swap them out or compare costs if the need arises.
Pro Tip: Make sure your business is ready for any eventuality. Make sure your product descriptions are clear enough to allow you to fulfil the order from your regular supplier or your backup source.
2. Establish Channels of Communication with Customers
When running a dropshipping company, one of the most essential things you can do is keep your lines of communication open with your consumers. The key to a successful company is to have a dependable customer service system that helps in any circumstance. A slight delay or irritation may convert into a lifelong customer into a lost customer.
Let me give you an example. I recently attempted to purchase something from a well-known retailer. However, the transaction was unsuccessful, and there was no error message on the website to explain why. When I contacted their customer service to inquire about what was going on, I was assured that I would respond within 24 hours. The twenty-four-hour period had come and gone. It took them three days to respond to me, which is a long time in eCommerce standards, and by that time, I had already purchased from their rivals.
I didn't mind waiting 24 hours for assistance. However, as that 24 hours stretched into three days, they had lost my business and the potential for many more transactions.
Pro Tip: Facebook Messenger has evolved into excellent customer care and support tool. You can guarantee that you receive more consumer requests faster by using chatbots while maintaining a human touch. You can learn it from here.
Step 2: Managing Your Dropship Supplier Business with Multiple Suppliers
When managing multiple dropshipping sellers, there are two things you can do to manage the expectation of your customer.
1. Your SKUs should be one-of-a-kind.
Organizing goods from various suppliers and avoiding duplicate SKU numbers requires creating unique stock-keeping units, or SKUs, as they are generally known. Here's a quick and easy method to create unique SKUs for goods from different vendors:
Once you've got your suppliers' product data, create an excel document for each of them. Take each product's SKU number and modify it for each source, adding a unique character like the provider's initials.
For example, suppose wholesalers Ben and Jerry's offer the same kind of notebook, with the same SKU: SKU356. You may ensure that SKU is unique for your online shop company by simply adding the initials of the supplier's name, as seen below:
BNSKU356 - Ben's Notebook
JRSKU356 - Jerry's Notebook
Having unique SKUs in place is essential for a dropshipper with many suppliers. It allows you to set up automated routing and guarantee that orders are fulfilled by the appropriate vendors.
2. Use a data synchronization application.
Organizing product SKUs is only one of your coordination duties while operating a multi-supplier online retail shop. Inventory levels, product availability, and the number of orders must all be coordinated.
While some of your suppliers may provide a dashboard for your account on their website where you can see product levels, tracking information, and inventory availability, it would be far more efficient to be able to work with a single centralized dashboard where you can see all the data from suppliers that are condensed for convenience and time savings.
For online merchants dealing with many suppliers, there are various solutions or applications on the market that synchronize and handle data from different providers. These product management platform applications allow you to devote more time to promoting your website. The two solutions mentioned below synchronize data from various providers into a single dashboard.
Another significant problem is tracking. You'll want to have tracking information for all of your orders easily accessible as a dropshipper dealing with multiple suppliers. You may want to rethink dealing with that supplier if the tracking information is not automated.
3. Use an app to integrate shipping from more than one supplier.
Another problem arises when a customer buys many products from more than one of the suppliers you list on your website.
This problem may be readily addressed by utilizing applications that specialize in shipping order consolidation. You can use some data management applications, such as Inventory Source, that include shipment consolidation.
Your drop shipping business may be well on its road to success if you have data management tools and shipping consolidation software. You know how to quickly identify goods with unique SKUs. Staying organized is essential when dealing with multiple vendors.
Always Be Truthful with Your Customers
Many dropshippers obsess about the logistics of shipping from more than one seller.
Don't act as if your goods are yours and you're simply checking on them in the back room. Dropshipping goods is nothing to be ashamed of, and it's something that most consumers have learned to anticipate.
The most essential thing is that you tell your consumers when and how they'll get their goods. This will foster a healthy and honest connection with the customers, resulting in years of recurring business.
Don't forget, you can get a fully automated USA based dropship website, built for you, in whatever niche you want, in 72 hours or less. Go to https://learn.dropshipusa.io/webclass to register for our free webinar that will teach you our secret dropship model, and how you can get it built for you in only 3 days!