Big or small, every retailer has at least one challenge in common: they all want to pay as little as possible for their merchandise. For thousands of years, retailers have been asking their suppliers “So how much will this product cost and how can I get it for less?” Whether you're a stay-at-home mom selling on eBay or a massive multinational entity like Amazon, keeping costs down can spell the difference between big bucks and bankruptcy.
The story is no different for retailers who have products drop shipped to their customers, which is why we're going to explore how Doba users can pay less for their merchandise by eliminating costly merchant fees.
Understanding Product Costs
As a retailer, the cost you pay for merchandise is a combination of many separate expenses. You pay for:
- The raw materials needed to make the product
- The labor required to manufacture and market it
- The supplier's markup
- Any merchant fees incurred from paying with something like a credit/debit card, Paypal, etc.
All of these costs come together to form the dollar amount you pay for a given product before turning it around and selling it to your customer.
One way to drive down the total cost is to eliminate the merchant fees. Ordinarily, this would involve a lengthy process of negotiating payment terms with the supplier, undergoing credit checks, and supplying a list of business references. Here at Doba, we provide a much simpler and faster alternative called Doba Prepay.
What's Doba Prepay?
Doba Prepay is simply another payment option that we offer as an alternative to buying our products with a credit or debit card. Think of it as being kind of like a bank account with Doba. Because it doesn’t involve VISA, Discover, or any of the other card companies, there’s no merchant fee. As a result, when you purchase items this way, you get an extra 3% off the wholesale cost of every item in our catalog.
How do I set it up?
- Go to: https://www.doba.com/members/prepay
- Enter either a Tax ID or a Drivers License and Drivers License State
- Read through and agree to the Terms and Conditions of Doba Prepay
- Submit the information
Now that your prepay account is set up, you just need to transfer some money into it before you can start using it.
- Click on the “Add Funds” button that appears in the upper left-hand corner of the Doba PrePay page
- Select either the Check or Bank transfer option
- Enter the dollar amount you would like to transfer to your PrePay Account
- Once you add the funds, it usually takes between 3 to 5 business days before the funds clear and become usable.
Voila! That's it. At this point you can use your PrePay funds as a method of payment for your orders and save an extra 3% on every item ordered.
Considering it only takes about two minutes to set up, Doba Prepay is a great tool for lowering the cost and increasing the profitability of your drop ship merchandise. Many of our top-performing retailers use it because they're in business to make money, and at the end of the day, Doba Prepay puts more of it in their pocket.