How Drop-Shipping Works
Do you pay fees with drop-shipping?
In most cases, yes, drop shippers do charge fees for their drop shipping service. Below are the type of fees you can expect to find with most drop shippers. Although there is old information out there saying that real drop shippers don’t charge fees, that is simply not accurate. We have found that more and more suppliers do charge a fee for their drop ship service.
IT IS IMPORTANT TO UNDERSTAND THAT DROP SHIPPING IS A VERY VALUABLE SERVICE AND IS ABSOLUTELY WORTH PAYING FOR.
What is the advantage of drop-shipping?
Remember drop shipping is a very valuable service and is worth paying the drop ship fee. With drop shipping you don’t buy any inventory upfront, there are no minimum order requirements and you don’t have to warehouse and ship the items yourself. The drop shipper takes care of all of that for you for a fee. You will find suppliers that charge a per order drop ship fee, one time account set up fee, and monthly/annual membership fee. All suppliers are different and the ones that do charge a fee, will more likely than not, choose one of these main methods with their drop ship program.
Other drop-shipping fees
Drop ship per order fee: This is one of the most common ones you will find with drop shippers. The drop ship per order fee is when a supplier charges a fee that usually runs anywhere from $2.00 up to $10.00 or more per order. This is a fee they charge in addition to shipping and handling that covers the drop ship service.
One time drop ship account set up fee: One time set up fees have become more popular in recent years. A one time set up fee is when a supplier charges a one time fee to have access to their products at wholesale price. This fee also includes the drop ship service. This one time set up fee varies. It can be as low as $20 all the way up to $250 or more for this fee.
Monthly/annual drop ship membership fee: Contrary to popular belief, there are more and more wholesale suppliers and manufacturers that are now charging monthly or annual fees to have access to their product lines and drop ship service. The monthly fee usually ranges from $19.95 up to $59.95 or more. These companies will sometimes offer annual fees at a discount off of the monthly access price.
It is important to understand that drop shipping is a very valuable service and is absolutely worth paying for. With drop shipping you are in a position to have access to thousands of products that you don’t have to inventory or ship your self. All you have to do is add the product image and description to your site or auction page and promote. Once you get an order you log onto the drop ship supplier’s site to place your order or email the supplier to place your order and they do the rest. They package the product and ship directly to your customer.
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