The art of negotiating with a supplier!

Anyone who dropships is aware of the challenges, mostly finding a competitive price that will allow you to sell on sites such as eBay. The question is, how many of you actually even try to negotiate prices with the suppliers to help with that issue?

I'm guessing that most people just simply accept the advertised price and don't even attempt to talk a better deal with the supplier. Now negotiating with a wholesale supplier is always going to be more successful, but it can't possibly hurt to at least approach the subject with the supplier. What's the worst they can say....NO?

Now bare in mind that they don't know you, so they don't don't know your ability to move their products, so getting much of a concession up-front will be a task, but consider your options.

What about suggesting a loyalty based program to the supplier. If you attain a certain level of sales, then you get a certain percentage discount on your orders. It can be a win win for both you and the supplier, remember, if you're moving good volume for that supplier then you've become a business asset to then and the last thing they want to do is lose that asset.

Now of course the problem you have to hurdle, given the fact that the supplier agrees to offer such a reward, given you meet the set requirements, is to accomplish the goal.

That's the hard part right?

Well let's look at it as a long term business plan and putting certain processes in place to make this happen. My suggestion, develop your own online store independent of eBay and start stocking it to the roof. Remember, the beauty about having your own site is NO listing of SUCCESS fees on sales.

So now you have your shop, how do you generate traffic. How about adopting a no margin, high volume strategy on eBay, that entails you selling the products at COST, not making a cent, only covering your cost. Now if you are finding that you're still not generating enough sales to meet the requirements of the sales target you need to get better prices, then considering taking a loss on the sale should be an option.

How much of a loss?

Well as much as you can afford, remember the immediate goal here isn't to make money, it's to generate enough sales to secure you a better price, as well as generate traffic to your own store through those sales. So it's short term pain for longer term gain.

If you can be successful in getting a reduced price and generating website traffic, now you're on your way and you can then build on that.

It's just an idea, but maybe one worth considering if you want long term success!

Great tips, I will definitely give this a try. Thanks.

Actually It's a great idea!

As a dropshipper we are seeking for members who would negotiate prices. Both sales volume and profit increases. It's a win-win situation:)

Bravo!~ Mark! Perfect Tips for the new Dropshipper.
Sometimes they are so confused about how to make money and negotiate.
Dropshipping and distribution is all about buying power,niches market and sales volume.
Be a brave dropshipper to contact with "banggood.com" directly.
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Those are powerful tips Mark, Great Job!

To make real money through drop shipping is to sell products in your OWN online store. That is a much cheaper course and will generate more income in the long run because it gets rid of third party fees. Ebay and Amazon generally takes 10-15% of every sale. So it means that if you sold products with a cumulative amount of 1000USD, Amazon will take 100-150 USD from your sale. You've made Jeff Bezos richer! Our goal is to make you richer, not Jeff. Coz he is already rich. Not paying third party fees will significantly improve your profit margins.

So, I would suggest that you build your own website and design it the way you like, make it look good both in web and mobile version, and use SEO tools to drive more traffic. Getting good SEO will put your website on page 1 of Google, driving more customers to visit your site.