---- Does drop shipping create mistrust with customers.
rachel123 - 6:04 pm on Aug 15, 2010 (gmt 0)
It's why Amazon moved away from being exclusively warehouse. Every year they move closer to becoming an all-inclusive retail search engine and farther from a store.
And this is why jsinger's point is worth repeating. If you have the reach of Amazon, you have the footing to negotiate with your supplier as an equal.
If you're a small to medium site outsourcing your fulfillment to a manufacturer (particularly one that has a shopping cart etc already for merchants to use) you are turning over specific customer sales information to a company that may become your competitor in short order.
It's a ready-made business plan for a manufacturer as well. Make something, build a following for it through retail drop-shipping...once you have a couple years worth of data and sales leads, hire a marketing department or agency, get good serp for your brand name, then pull the plug and go exclusive.
If your business plan is to drop ship, if you have a robust list of vendors, or established ones with no interest in direct sales (that you know of) you might be ok.
If you're a small shop that works with one or two dropshippers, one of them pulling the rug out could do you in.