Should a Dropshipper Charge You for Membership?

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Should a dropshipper charge you for membership?

Charging your customers to sell your products? Sounds like a great business model! Sellers would bite their own arm off to find a reliable dropshipper with great products that sell. If there¡¦s so much demand for drop ship companies, are they right to charge a fee?

Membership fees most of the time are needed to provide good service.

No doubt you¡¦ve found a number of potential dropshipping companies. There¡¦s a huge array of lists and sources available, so much so that it could actually be quite daunting to decide where to start. In some cases, this is only the first challenge. As it is becoming increasingly popular for dropshippers wholesalers to charge for their services. There are a number of reasons for these charges, listed below are the most popular reasons, we¡¦ve gone on to provide more detail for each reason..

* It¡¦s a new channel to make money
* The dropshipper is covering their costs
* The dropshipper is trying to create an air of exclusivity
* There is added value that you¡¦re buying into
* The dropshipper is ¡§qualifying¡¨ you as a customer

It¡¦s a new channel to make money

Unless you have found the greatest dropshipper going, with the greatest products available, charging for membership just for the sake of it should be one to stay clear of. Just by simply asking your potential drop ship partner why they charge a joining fee will enable you to learn more about the company and allow you to make a sounder judgement.

The dropshipper is covering their costs

If the drop ship company suggests that the joining fee is to cover their costs, it would be interesting to know what the costs are. Unless you¡¦re applying for a credit account , there really should not be any costs to cover. Perhaps, there is some small administration work involved, however most good companies would have already worked this into their pricing model.

The dropshipper is trying to create an air of exclusivity

A carefully worded sales pitch may suggest that that by buying into a particular service, you are joining the most exclusive, no competition, sell at 1000% profit, worlds greatest dropshipper. This of course may be true, however remember that if you¡¦ve found them, so have lots of other people.

There is added value that you¡¦re buying into

The dropshipper is giving you something in return, hopefully something that you want or can see the value of. Most likely this will be sales tools, descriptions, CSV files, members areas, free shipping, free reports, free website etc So in effect, you¡¦re almost buying into a mini franchise.

The dropshipper is ¡§qualifying¡¨ you as a customer

A popular one at the moment is to qualify your customers. Many dropshippers we spoke to complain about the huge number of questions and queries from ¡§potential¡¨ customers that they just know will never become one. So they charge a fee as they believe that this at the very least means that the customer has some form of investment into the product/company and will be motivated to make it work.

Summary


„h Never pay to become a member of Dropshipping Company without knowing what products are available and what the prices are.

„h Always ask why there is a joining fee.

„h Always push for a money back guarantee. You may not always be successful in achieving this, however it will give you an idea of what is important to the dropshipper, your lousy membership fee or your continued business.

„h Establish whether the joining fee can be refunded upon reaching certain sales thresholds. This may not be an advertised offer, however our research has suggested that most genuine dropshippers would be delighted with sustained business and working with motivated agents..

„h Find out what you receive for your membership. For example, if your dropshipper is offering you 1,000 plus items for sale, have they already prepared auction listing files or bulk upload tools for your website? If the answer is yes, the time saved

This information has been provided by www.ukdropshippingguide.co.uk