How Do I Fill Out a Drop Ship Supplier Application?
If you’re watching this video, you have your niche picked out, your Shopify store built, and a list of potential suppliers. It’s time for you to get out there and start getting approved by these suppliers. You’re so close to making your first sale, congrats!
But there is one question students frequently ask us at this stage: “How do I fill out a drop ship supplier application?”
In this video, Anton answers this question from Peter, one of our Drop Ship Lifestyle students.
Hey everyone! Anton here again and we’re back with more question and answers. Today’s question comes from Peter Lee and he says, “Hi Anton I’m struggling to fill out account applications in Australia.”
He’s unsure of where to put the credit card information and he’s not sure what to fill out in trade references. Because obviously he just got some of his first supply forms. So basically Peter is filling out supplier application forms and they’re asking him for some credit information. They’re asking him for trade references. And you know they’re also saying something about invoices are to be paid with net 30 terms on the month ending.
Prepay Versus Applying For Credit Terms
So he’s not sure what to put there and this is a great question. And listen, the answer is if you’re doing drop shipping, which you are, do not apply for credit terms.
So typically when any supplier approves you for a drop shipping account they’re going to email you with their application form and it typically will have spaces to fill out things like bank information. Peter asks about trade references and then he also asked about those net 30 terms.
I don’t fill out any of this. I actually just cross it all out and I write, “Prepay” in all of those sections.
What About Net 30?
So what net 30 means with traditional business, when someone basically approves you for an account they will ship things on credit. So they’ll drop ship your orders on credit just like a credit card and then those invoices are due 30 days later.
Yes, you have this option if you want to give them all your personal information, if you want them to look into your stuff, then they’ll ship things on credit for you.
Again, I don’t do this at all and the reason is I like to pay for things right away. I like to do it with a credit card. I like to get those points and miles for travel.
My Advice For Filling Out a Drop Ship Supplier Application
My advice would be unless you’re really looking for credit terms, which as a person that’s just starting out you shouldn’t be, just cross it all out and write prepay.
Then, when you submit these forms back to the supplier ask them for a credit card authorization form and that’s where you’ll give them your info. So that once you place orders with them they can just charge your credit or debit card on file, get those orders shipped out, and it’s really that simple.
You’re not looking for payment terms, just go ahead and totally bypass that.
I hope that makes sense and applies to you. I know you’re [Peter] in Australia but it doesn’t matter where you are, this is how it should be done.
Now you know exactly how to fill out those drop shipping supplier applications, it’s time to go out there and get those suppliers!