Always ask the question
The first rule of negotiating is, you should always try to do it. Don't just accept the first price dropshippers give you – ask if it's negotiable. These suppliers are businesses, and are used to the question, so you're not going to upset anyone. If the price for your drop ship products isn't open for negotiation, they soon tell you; but if you don't ask, you'll never know.
When you've found a dropshipping supplier that is prepared to negotiate, you need to make sure you are professional, and deal with them in a business-like manner. Put forward your case as to why you think they should give you a better deal, explain how much business you could bring them if you can get the right price. Of course this is easier to do once you're established, and you shouldn't lie to get a better deal, but you need to give the supplier a reason to show flexibility.
Order larger quantities
Ask about a discount for ordering your drop ship products in larger quantities. One of the benefits of using dropshippers is that they don't usually have a minimum order, and you only have to pay them once you've sold and item, but bulk ordering up front might get you a better deal. You can ask them to hold on to your stock and ship it as you sell it. Alternatively, have it all sent to you, and ship it out yourself as you sell it – you should pay lower shipping fees this way as well.
Don't just focus on the price
When negotiating, don't just focus on the price of your Drop Ship Products. There are other parts of the deal that the dropshipping supplier might be more flexible on, that could still benefit you. For example, they might extend your payment terms so you just pay at the end of the month, rather than every order, or they might offer faster shipping for your customers. Getting a discounted price for your drop ship products is great, but consider the rest of the deal as well.
Make sure you're both happy
Negotiating isn't just about getting the lowest possible price out of your dropshippers, you have to make sure the deal works for both of you. If you get them to commit to too low a price, they might cut corners elsewhere, like a less reliable shipping option, to make some money back. Real negotiation is about finding a good deal, for all parties.
Finally, once you've negotiated a good deal with your dropshipping supplier, make sure you revisit the arrangement regularly. Don't see negotiation as something you only do once. The economic climate is constantly changing, so make sure you are always looking at ways to improve the deals you have with your suppliers.
Negotiation isn't something that comes naturally to everyone, but it is an important part of running a successful business. You should always be looking to negotiate the best deal for you and your dropshipping supplier – that way your relationship will grow, along with your profits.