How to negotiate the best deal with dropshipping providers
Always ask the question
The first rule of negotiation is that you should always try to do it. Don’t just accept the first price dropshipping gives you, ask if it’s negotiable. These providers are companies and are used to the question, so you are not going to anger anyone. If the price of your drop shipping products is not open for negotiation, you will be informed soon; But if you don’t ask, you’ll never know
To be professional
When you have found a dropshipping provider who is prepared to negotiate, you need to make sure that you are professional and deal with them in a professional manner. Make your case for why you think they should offer you a better deal, explain how much business you could give them if you can get the price right. Of course, this is easier to do once you are 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 drop shipping products in bulk. One of the benefits of using dropshippers is that they typically don’t have a minimum order and you only have to pay them once you’ve sold an item, but ordering in bulk in advance can give you a better deal. You can ask them to keep your stock and ship it out as you sell it. Alternatively, have everything shipped to you and ship it yourself as you sell it; you also need to pay lower shipping fees this way.
Don’t just focus 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 and that could still benefit you. For example, they can extend their payment terms so that you pay at the end of the month, instead of each 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 as well.
Make sure both of you are 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 get some money back. Real negotiation is about finding a good deal for all parties.
Renegotiate
Finally, once you’ve negotiated a good deal with your dropshipping provider, be sure to review the deal regularly. Don’t see negotiation as something you only do once. The economic climate is constantly changing, so be sure to always look for ways to improve the agreements you have with your suppliers.
Negotiation is not something that comes 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.
