Charging shipping for shipping when suppliers are dropshipper?

[SquareDorito]

I'm new to ecommerce and this is pretty scary for me. I've been wanting to do this for a while and finally went through with it. My question is how do I configure the shipping modules if I won't be personally shipping the products but my suppliers will be? I still haven't launched the site yet since I'm still working on understanding all this. I have more than one supplier as well so would it be different for each supplier? Any help would be appreciated, thanks. I tried looking around for answers but I couldn't find anything about this specific subject. Thank you!

[schoolboy]

Dropshipping is a challenging area, and I don't mind telling you that 80% of sites that start up in this area do not last longer than 6 months.

Remember... you are (or will be) one of MANY sites selling identical products as dropshippers like to have as many people as possible setting up websites to sell their goods. The more people selling for a dropshipper, the more competitive it becomes, and the PRICE is the key factor in getting business.

Then, it becomes "a race to the bottom" as competing websites try to attract business for the same products, by offering the cheapest price.

These days, people shopping on the internet are very clever... they know when a lot of sites are selling for dropshippers, and they know that they will be getting exactly the same item regardless of who they buy it from - so they look for the cheapest price.

Your dropshipper does not care what you sell his good for. He knows that he gets HIS price, because that's fixed for you (and everyone else), so if he has a product which costs you $10 to buy from him to send to someone else, he does not care if you sell it for $10.01 . He knows he will get his $10, and after you have paid him, your profit is what is left over... in this case, one cent.

SO...

It is better to keep away from dropshippers selling cheap stuff (no margin)
It is better to keep away from dropshippers who sell branded goods (electronic goods, cameras, dvd's, CD's, games...) ... all these are a NO-NO...
It is better to keep away from dropshippers who have LOTS of re-sellers. The more competitors, the greater the pressure on price.
Stick to dropshippers in your own country... AVOID trying to set up relationships with companies in foreign countries.

THEN... consider YOUR customers...

If you represent SEVERAL dropshippers on ONE WEBSITE, bear in mind that each one will be sending goods to your customer. So if your customer orders THREE ITEMS from THREE DIFERENT dropshippers, he has to pay for THREE SHIPPING CHARGES and must wait for THREE SEPARATE DELIVERIES.

And what if the customer wants to return TWO of the THREE items??? Who does he return them to? Who pays for the return shipping?

Dropshipping is very challenging... there are MANY more considerations and you need to investigate this very carefully.

Now... to your original question.

Because different dropshippers will have different shipping charges and systems, you will need a PER PRODUCT shipping system. This is possible to do in Zencart, but it is complex.

[stevesh]

I would add to what schoolboy said: when you sell what I call 'commodity products', that is, products that are available from many, many websites, you will eventually end up competing with Amazon, and you can't. Nobody can.

We aren't really trying to dissuade you from selling online, but dropshipping probably isn't the way to go. If you want to try, consider searching the web for ceon advanced shipping. Not free, but affordable, and I believe it will do what you want, though I haven't used it.

[schoolboy]

Please don't think we are putting a "damper" on your enthusiasm, or keenness to get into the world of online selling.

I (like Steve) have been in this industry (ecommerce) for more than a decade and have watched a lot of developments over the years. I have also seen a lot of eBusinesses disappear...

The internet is a great "leveller", and today, competing for business online is extremely tough. Dropshipping has (for the most part) had its day, and there are very few opportunities in that area. Unless you have a lot of capital to invest (in marketing mostly), you cannot compete with the likes of Amazon and eBay - who spend millions of dollars a month on Google AdWords, and who can price you out of the market.

Having said that, if you are keen to discover what zencart can do, then hire some server space (with a reputable host - not places like GoDaddy), register a domain, load up zencart and kick it into life. Then spend a few weeks learning how it works - and at the same time, research some niche areas of business.

One idea is to approach local small retailers who sell specialised products, who are not yet eCommerce enabled, and offer to sell their products on your site for a small commission. Try this for a few months to see what products sell, and get an idea of what direction to follow.

But learning the ropes BEFORE you invest money in some venture is important. You can burn money quickly in this area.

[stevesh]

One idea is to approach local small retailers who sell specialised products, who are not yet eCommerce enabled, and offer to sell their products on your site for a small commission. Try this for a few months to see what products sell, and get an idea of what direction to follow.

I was going to say that. Also, try approaching local manufacturers who sell their stuff wholesale and offer to sell their products at retail online. They may be willing to give you 'net 30 days' (or more) credit to get you started. As schoolboy said, make sure you know Zencart inside and out.

[Limitless]

Ceon's Advanced shipper module is a must for what you are trying to do, otherwise you will lose on shipping every time.

While I cannot disagree with what has been stated in regards to dropshipping, there are a few areas that the playing field IS leveled.

MAP pricing.

I used to hate it, still do in many regards, but I have found when there are controls on prices ~by the manufacturer~, you can actually BEAT amazon/ebay on pricing, because they have to pad the selling price to make it worthwhile to sell in those venues to cover their (sometimes exorbitant) fees.

[SquareDorito]

Thanks guys I appreciate the input and will look into your advice. I knew what I was getting myself into. This is where I'd like to start simply because there isn't any other way for me to start gaining any business experience. The reason I chose drop shipping is because I can't make inventory myself. I'm 19 years old and doing with what I can, later on I hope to have my own actual business but for that I would need some money to start. Right now what is paying for this is my job. I also don't have any web development experience, my web hosting service was reasonably priced and pretty much did all the work and I wanted to do the marketing. Also, I decided to only use one supplier and I changed my product line. Is there anything I can do for just one supplier in regards to having the orders sent to them directly or shipping charges being transferred over?

[schoolboy]

Is there anything I can do for just one supplier in regards to having the orders sent to them directly or shipping charges being transferred over?

Most dropshippers will require you to pay up-front for an order before they ship it, and most dropshippers have their own system(s) for their re-sellers to place orders.

Unless you have an agreement with the dropshipper to ship first (before you pay), or if you have cash in an escrow account with them, then you will have to place all orders manually.

If your dropshipper is prepared to ship on the basis of you receiving an order, then you can include their order department's email address in the email notification system.

SEE: admin >>> configuration >>> email settings.

[schoolboy]

Is there anything I can do for just one supplier in regards to having the orders sent to them directly or shipping charges being transferred over?

Most dropshippers will require you to pay up-front for an order before they ship it, and most dropshippers have their own system(s) for their re-sellers to place orders.

Unless you have an agreement with the dropshipper to ship first (before you pay), or if you have cash in an escrow account with them, then you will have to place all orders manually.

If your dropshipper is prepared to ship on the basis of you receiving an order, then you can include their order department's email address in the email notification system.

SEE: admin >>> configuration >>> email settings.

[Limitless]

I would recommend against 'automating' the order process with your dropshipper unless you are in a market/niche that doesn't have any fraud or you will be out several thousands of dollars very quickly.

Also, I have about 1/4 of my orders come in with 'comments' in the order details, etc. that may require additional conversation with the customer before placing an order with your supplier.

People pay for customer service, may sure you still give it to them.