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How to Start Working with a New Drop Shipping Supplier

8 min read

 

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What Are You Going to Learn About in This Lesson?

As you starting to work with DSM Tool you realize it’s an automated drop shipping directory supporting 50+ suppliers that presents real solutions! Setting up your drop shipping supplier to your DSM Tool account is the thing we need to learn in detail. So, if you choose to work with a new supplier what is it that you have to do? How can you learn about the supplier? And, how do you set up drop shipping supplier in DSM Tool and actually start working with them? Those are the main topics for us to discuss in this lesson.  

DSM Tool dropship automation

How to Start Working with a New Drop Shipping Supplier 

Drop shipping is commonly regarded as the simplest way to sell products online. The difference between drop shipping and the standard selling of goods to the public is that in drop shipping, the sellers do not stock their inventory. Instead, the seller buys an item as ordered by his buyer from a third party supplier and then the supplier delivers the item to the buyer. Quite a simple circuit!

Nevertheless, one of the important questions in drop shipping, especially to those who just want to start this business model, is how to set up a supplier? Well, you are in the right place to get an answer to that question. Stay tuned to know some great tips on the matter!  

 

Choose a Supplier You Wish to Set up

DSM Tool supported suppliers

 

In DSM Tool, we are currently supporting 50+ drop shipping suppliers integrated properly into our system working with eBay and Shopify stores. Let us take Chinabrands as an example and use it as a new supplier for your dropshipping business. 

Chinabrands drop shipping supplier

 

On the list of suppliers, click the logo of Chinabrands to see the details. You will see a lot of useful information about Chinabrands that will give you ideas and hints on how to work with them. Let’s take a closer look. 

Chinabrands warehouse locations and DSM Tool badge

This section shows the specific locations of Chinabrands warehouses not only in China but also in other major cities all around the world. This is great additional information that you should know as a seller in regards to the shipping policies when calculating the time your orders will be delivered to your buyers. You can also see a DSM Tool badge which means Chinabrands has a partnership with our company. 

Drop shipping information about Chinabrands

A complete drop shipping article giving all the most important details about the supplier is available at the Dropship Academy. Chinabrands has a drop shipping program, it provides a reseller agreement, and some information on how they pack your orders before delivering them to your buyers. 

Supplier business policies and payment methods

Policies section is important. Clicking on each policy or payment method will redirect you to the supplier site and provide instructions on how to link it to your store.

DSM Tool and supplier integration

Integration of your selected supplier is mainly how DSM Tool works. From listing the items to fulfilling the orders is handled automatically. If you are already using DSM Tool and have any questions about your supplier, you can refer to the DSM Tool Dropship Academy or to the Help Center in order to set up a drop shipping supplier and link it to your DSM Tool account.

 

Set up Break-Even and Item Location

Before we discuss these 2 important options, we will need to define them first. 

 

Break-Even

Do you know what’s that? These are fees that you need to pay after you sold an item, for example, eBay fees, PayPal fees, Sales Tax (if applicable). 

By definition, it gives us an idea that this option is very important in the drop shipping business. By default, it is set to 19% which you can change along the way. 

To set this option, you need to go to your DSM account Settings and then click the Lister tab. 

Break-even settings

The screenshot above shows 18.50% value set to all suppliers. But if you want to set different values for each supplier, you can do that by clicking the Break-Even for a specific supplier drop-down menu. 

Different break-even for each supplier

It’s absolutely simple! Just select the supplier you use, after that set the percentage for that supplier and finally, click the Add button. 

Item Location

Working with different suppliers means that the products will be coming from various locations. You need to specifically set the location of the product if you’re working with different suppliers. In case you’re using only one, you can check this guide to set a default location for all suppliers.

Item location per source

Again, to do this you should go to the Settings page of your DSM Tool account and select the Lister tab. Then click the Item location for a specific source drop-down menu.

Item location selection per source

First, select a supplier. 

City and state

Then enter the City and the state for US suppliers, for others indicate the city and the country. At last, click the Add/Edit button to save it.

Configure Business Policies and Template Settings

Business Policies

Why do business policies matter? They give an awareness to your buyers what payment method they can use to pay for the item (PayPal or Credit Card), how many days (sometimes months) it will take for them to receive their order, other delivery options like if they can hasten the delivery by paying additional shipping fees, and if they can return the item in case they are not satisfied. These policies are needed to be set before you sell an item for them to have a proper expectation before they purchase your product. 

As a drop shipper, you should also check your supplier if their policies favor you and your buyer and if the supplier quickly resolves the issues and disputes. 

Now, let’s see how to set up the business policies in DSM Tool for each of your dropshipping suppliers. 

First, make sure that you already have an existing business policy set on your eBay account or Shopify store. Please refer to these articles for further details Changing Your Business Policies and Adding store policies on Shopify.

Next, sync these policies to your DSM Tool account. To do that, go to the Settings page of your account. 

DSM Tool settings lister tab

Click the Lister tab. 

DSM Tool business policies

Go to the section called Policies, then select your preferred policy for Payment, Shipping, and Returns. 

Update to save

And click the Update button. Done!

These settings will take effect on whatever supplier you have but if you want to create different policies for each supplier, here is an article to consult Setting eBay Business Policies for each Supplier.

Templates

If you use different suppliers while drop shipping, it’s obvious that you should set different business policies for each of them. In the Templates section of your Tool DSM account, you can see the predefined format of business policies that you can use for your listings. It is also editable and you can set different templates of each supplier. 

In order to do this, go to the Settings page, then choose the Templates tab. 

DSM Tool settings templates tab

Click the Add Supplier button.

Adding supplier for business policies templates

Select a supplier. 

Select supplier

Edit the paragraph on each policy based on the supplier’s business policies.  

Business policies template

Click the Update button to save it. 

Configure Suppliers Settings

DSM Tool suppliers settings

Sometimes shipping fee is generally added to the price of the product at the supplier’s website but it doesn’t happen with some of the products. And we don’t want a sales loss, right? So, here at DSM Tool, we provide a helpful feature to give you the choice of listing items with paid shipping, especially for suppliers that DSM don’t yet support in terms of including their shipping fee to the price.

Free shipping option

NOTE: When this option is Enabled, the shipping fee will not be included in the price for the sources that do not charge a flat rate shipping fee.

For more information on how to use the feature, you can refer to the List Items with Paid Shipping article.

 

Summary 

Choosing and setting up the right supplier, and working with them together with DSM Tool is crucial for your store. Delivering the orders on time to your buyer and the high quality of goods is a great criteria when choosing a reliable supplier. Now, you have a strong knowledge of how to set up a drop shipping supplier with DSM Tool!

More of the lessons are to come very soon! Check our updates from time to time!

 

 

 

 

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Written by Kfir Shapira

Kfir is a Co-Founder and the CEO of DSM Tool. He is working with eBay since 2008 and 8 years later in 2016 joined the founding team of a revolutionary drop shipping management platform - DSM Tool. He has a B.A in Business and Entrepreneurship from IDC Herzeliya. Kfir also plays the drums and owns a dog named "Bamba".

How to Find Products for Dropshipping – Part 1: From Demand to Supply

Add Products to Your Drop Shipping Store with DSM Rapid Lister