Flow Of A Dropship Order
- How to process dropship orders
The first thing we need to cover is understanding the normal flow of an order and how the payment is handled. Regardless of where you sell a products, you will always be the one collecting the payment for the items you are selling. There are several methods of receiving payments and Paypal is often the preferred chosen method because it's free and very easy to use. Now even eBay is fully integrated with Paypal making payments for auction winners a very easy step.
After you sell a product, the buyer will pay you immediately. You then need to fulfill this order in order to have it shipped to your customer. Most dropshippers will offer "blind dropshipping" which is a term commonly used meaning that your name and the name of the supplier will remain anonymous. This also means that your wholesale price will not be included in any receipt so your buyer will never know the names of your chosen suppliers nor will they see your wholesale cost. This is extremely important so whenever you look for new dropship suppliers, always request for a "blind dropship" service.
At this point we can consider the order as in a PENDING status, which means that you have received the payment for the order, and you are now ready to process it with the supplier. Typically it's a good idea to check your Paypal account to confirm that you have indeed received the payment. It's also a good idea to get the order to the supplier quickly, especially if the inventory on the item is low to avoid having the item run out of stock before you can process your order. This is why we recommend processing your orders the same day you receive the payment.
Your next step will be to send the order to the supplier so it can be packed and shipped to your customer.
How To Send The Order To The Supplier?
Here you will have 2 options. You can either process your orders directly with your chosen suppliers or you can simply let wholesale2b act as your buying agent and handle orders for you with the suppliers. There are pros and cons for each so you can choose which option is best for you. Most providers will force you to deal directly with the suppliers however with wholeslae2b we beleive that helping members process orders with suppliers is a huge benefit and we are proud to offer this service as part of all our dropship plans.
Option A: Process orders directly with the suppliers
This option requires that you login to the supplier's website using your reseller account, and input the order manually from their website. This option also requires that you first take the time to apply for a reseller account with each of your chosen dropship suppliers and wait for an approval. Generally speaking dropship suppliers don't sell to the public since they offer wholesale prices, so you will most likely need to have an established company and provide your business license as part of the signup process. Once approved, you will then be granted access to their website so you can place orders.
At this point, let's assume that you have indeed been approved. Simply go to the supplier's website and login to your reseller account. From there simply search for the item you sold and create an order and remember to enter your buyer's shipping address during the checkout and complete the payment.
Supplier never have fixed shipping costs so you will be charged a shipping fee based on the shipping address of your buyer.
Once your order is processed, you can consider that your order is now in a IN PROGRESS status. Now you need to wait for the supplier to pack and ship the item to your customer. Once the order is shipped the supplier will provide you with a tracking code from either Fedex, UPS, or USPS. Some suppliers may email the tracking code to you, wheras others may simply display the tracking code in your order history and some may require that you actually call them on the telephone to get the tracking code.
Once you get the tracking code you can consider the status of your order to be SHIPPED. At this point you can inform your buyer that the item has been shipped and provide them with the tracking code.
Option B: Let wholesale2b handle your orders
This option does not require that you have a reseller account with any of your chosen dropshippers. Your orders will be processed using wholesale2b reseller's account with each of our integrated suppliers. Remember, since all orders are shipped using a Blind Dropship Method, your buyer's will never know that we exist. We even use a different name when dealing with our suppliers to avoid any possible leak to your customers.
At this point processing orders is extremely easy. If you have our Dropship Website Plan or our Amazon Dropship Plan then you will a new order in your order history shown as a PENDING order. Next to each PENDING order you will see a blue ORDER NOW button. Simply click on that button to process your order and you are done. You won't have to enter any shipping address or item numbers. We will then handle the order with the corresponding supplier for you. If you are selling on eBay, then you simply need to click on the ADD TO CART button located in the product detail page of the item you sold and follow the checkout steps.
At this point the wholesale2b team will automatically see that you have orders to be processed and we will then process your orders with the suppliers for you. Wholesale2b has been processing orders with suppliers for many years so we have extremely good relations with our integrated suppliers. Once your order is processed by our team, your order will then be changed to IN PROGRESS. This will be done by our team.
Next our team will be responsible for getting the tracking code for you at which point we will update the order for you and the status will be changed to SHIPPED. You will also receive an email with the tracking code to inform you that your order has been shipped.
With this option, the wholeslae2b fulfillment team will also be responsible for handling any returns or cancellations for you. Simply inform us and we will handle the request with the supplier for you.
Pros & Cons
Both options have pros and cons so to help you decide which options is best for you, we have made a list below:
Option A - Process orders directly with the suppliers
Option B - Let wholesale2b handle your orders
You will not be subject to a 3% as with Option B
- You will need a business license and possibly a reseller permit depending on each supplier
- You will need to go though a signup process with each of your chosen suppliers
- You will be responsible for getting the tracking codes
- You will be responsible for handling any returns or cancellations
- You will need to wait util you are approved by the supplier before you can start selling
- You will be responsible to change the status of your orders
- You will not know the exactly shipping cost up front since suppliers calculate the shipping when you place orders
- Some suppliers (very few) may charge a yearly fee or a monthly fee
Which option should I choose?
- You don't need to worry about dealing with any suppliers
- We process orders for you hassle free
- We are responsible for getting the trakcing codes for you
- We will handle returns and cancellations
- You are not required to have any business license
- You can start selling products immediately
- We will change the status of your orders and handle each step of the order
- You will always know your shipping cost up front since we offer fixed shipping cost
- You will never have to pay the supplier any yearly or monthly fee
There is an additional 3% per order. The 3% is required to cover the cost of Paypal or Credit Cards.
Option B is obviously the best choice as it offers a hands off solution when it comes to handling orders. For some people the profit margins are extremely important and we full respect that in which case you should go with Option B to avoid the additional fee of 3%.
Usually profit margins are much higher than 3% so this fee and easily be absorbed so most people will tend to choose Option B. You will need to decide what is most important for you. Automation or a profit margin of 3% more?
Regardless of which option you choose, you are never locked into any choice. You can decide to process your orders using any option each time you get an order. You get to choose each time.