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How Much Does Drop Shipping Cost
How Much Does Drop Shipping Cost
If you sign up with a company that charges a monthly fee you could end up giving
away your profit for a month or two. You need to know all the cost of Dropshipping
so you can accurately calculate your profit. Be sure you get an itemized list of
expenses from your Dropshipper. You need to know the cost of the item, the charge
for shipping, and taxes if any. Be reminded that some states charged an additional
tax on purchases. If you are paying a monthly fee to a Dropshipper you have to
also prorate that fee into the total cost.
Remember there are always scams lurking to take advantage of beginners and others
in any situation. You can always check with the Better Business Bureau to see if
there have been complaints about the business dealings of any one of the
Dropshippers you find. Check with your Dropshipper also to see how your account
will be calculated. It is important to know whether you will be charged piece by
piece or whether you will be charged on a monthly time table. Find out if the
company accepts returns or what the return policy is.
If the company does not accept returns, then you may have to factor into your
records a loss for that month. So that you will be able to adequately determine
the cost for Dropshipping, get all this information in writing before you start
working with a company. Drop shipping can be a very efficient way to start a
business it can enhance the bottom-line of any business but you need to know all
the facts up front before you start. Even more so you need to let your customers
know the return policy because eventually this can define your bottom-line.
Don't forget to get the company�s policy for damage merchandise. Some companies
will accept returns on damage merchandise and some companies will not accept
returns on damage merchandise. Wholesalers that dropship sometimes are reluctant
to accept merchandise that has been opened and damage. So make sure you get in
writing the policy the company will adhere to for damage merchandise that has been
opened. Damage merchandise that the company will not accept as a return will be
part of your Dropshipping cost on the bottom.