How Much Does It Cost to Start A Drop Shipping Business?
The start-up cost of drop shipping business in USA is not much and one can invest a small amount of money to get a proper legitimate business setup. The factors which vary cost of drop shipping business in USA are website and getting a sales tax ID. The cost of getting a sales tax ID varies from state to state and it is needed in few states. To start-up dropshipping business first you need to get your business associated with the state. This process can bring expenses somewhere $150-$300. You will need to request EIN number which is free all over USA and also a relationship or registration with dropshipper which is also free of cost. If your state has policy of sales tax you will need to register with sales tax department and get a valid sales tax ID or number. The last but not least is the website. The cost of website can vary greatly depending upon your choice. But if we talk about an e-commerce website with usual features it can be developed within $10-50. So practically the startup cost of dropshipping business in USA is less than $400.
Start Up Cost of Drop Shipping Business In USA
Once you are through with setup of drop shipping business you need to think about the factors which are going to increase chances of your success. If you go through following points, these can work for you as step by step guide to achieve unexpected success in this business. It is not that in drop shipping every one succeeds necessarily, many fail too, if you analyse the success and failure stories deeply you can easily make-out what are the success factors of drop shipping business in USA. Apart from discussing the startup cost of drop shipping business, here we have listed factors which you shall always consider as these are very helpful drop shipping business guide for dummies.
Take care of your customers – If you think that dropshipper / manufacturer / wholesaler is going to help your customers in understanding features and benefits of your product it is not so. It is completely your responsibility to clarify doubts and curiosities of your customers and convince them. Even after sales if they need any help regarding usage or other matters it is you who is supposed to help them first, if you are not in a position to handle any query or difficulty your customer is facing you can get in touch with dropshipper and get help. So you should always be ready and available to respond to queries and other questions of your customers.
Explain all the policies clearly – Do not try and fool any customer. Let them know about the policies and refund policies clearly and honestly. If you try to work your way around this practice it is going to hurt your credibility. Any bad comment about your or your company can spread quickly over internet and people may start avoiding you. So be honest and do not hesitate to say no if you need to say it, even at the cost of losing sale, in the long run honesty is surely going to pay off.
Always provide prompt support – It is disheartening if any of your customers want refund or replace the product. But keep your heart these are the times when you can show your commitment and sincerity, support him as much as possible. Your support is surely going to earn trust which will help you in getting good business.
Get a clear picture – At times refund/return policies can be dubious. If there is any point which is not clear to you clarify it with your dropshipper before registration. Usually dropshippers follow different policies for defective and non-defective products; some even have different policies for broken and unused products. It is better to get a clear picture before you start so that you can explain to your customers in better way. Do not work with people who are trying to avoid clarifications about return/refund policies or in any way not having well laid return policy.
Maintain your identity – When you deal with your dropshipper make sure that he does not get in touch with your customer directly in any manner. Since dropshipper is going to supply the order directly so it should be clear that he is not going to attach any document or slip which may carry his name.
Ensure that your customers get timely deliveries. Your dropshipper shall provide you with tracking code once your product is in transit. Keep track of every parcel and be ready to update customer with status of his order. It will make you appear brand owner and also a responsible businessman which works in your favor in long run. Try to establish long term relationship, interact politely with customers and gradually grow your relationship in a manner so that they mention about your products in their circle as well.