Utilizing multiple suppliers had the numbers of advantages:
It increases the possibility that the merchandise may be in stock, tenders geographical diversity for faster delivery times, which will prevent you from being dependent on any source for your goods. With many options available for filling in an order, how to know then which supplier is the best to select?
There are some different methods to take into consideration:
1. Route all the orders to the chosen dealer – If you have a supplier that is already best to deal with (great selection, superior service, etc.), you may simply route all the orders to that particular supplier by default. It is particularly very simple to implement, as someone may simply add the email address of the supplier as the recipient for all of the new order confirmations, mechanize the entire procedure. If you use the method, ideally your chosen supplier will stock most of the items that you sell. Otherwise, you will frequently need to transact with re-routing orders which it cannot fill.
2. Route orders base on the location – If you are applying numerous suppliers that each store the majority of the products, you may simply route the orders to the suppliers closest to the customer. This will not only advance the delivery to the customer, but it will also save the shipping fees.
3. Route orders base on the availability – If the stocks are on the large catalog of goods spread out over the many suppliers, you will likely need to direct each of the orders based on which dropshipper has the items in stock. This alternative requires more work when you are manually doing it, but may be automated with the service if the suppliers provide the data feeds.
4. Route orders base on the price – This really sounds great in assumptions, but unless a supplier had significantly better costs, it may be hard to automatically identify which supplier may be the most inexpensive. Any automated solution may need to consider possible drop bills, real-time supplier price and the real-time shipping rate. So, while it is not impossible, it may be hard to implement a precise automated system to attain this.
Take note that even if you do not route all the orders on the price, you must have the suppliers bid towards each other to attain with the best cost possible as the business grows. Just do not try to attempt this too early – when you are asking for the pricing discounts as the newbie, you will likely only to annoy your suppliers.
These four methods had been tried already and it has been found that there is really no “best” way of doing it. It really all depends on the store, the suppliers with your personal preferences as well.
Make the client acquisition plan
You have to think longer term, so the email marketing and the search engine optimization must be your concentration. Collect the emails from the beginning, and set up the automated email sequences which offer discounts and exclusive offers. It is the easy way to control the existing client base and generate the revenue without the added advertising and the marketing spend.
Josh Madrid is a serial entrepreneur, marketing consultant, millennial thought leader & speaker. Josh is the host of The Dropout Degree, a podcast show top-ranked as one of the top 10 Business Podcast on iTunes.