Common issues with drop shipping. Despite my glowing recommendation, drop shipping isn’t ecommerce nirvana. Just like all models, it offers its weaknesses and downsides. With a few planning and awareness, these problems may be managed and require not stop you from operating a successful drop shipping business.
1. You will see plenty of competition and bad margins
Solution: It’s true. Products which can be drop shipped will spawn a lot of competition. Usually this will result in cutthroat pricing and diminishing profit margins, making it tough to build a viable business.
To be successful with Dropship Wholesalers, you typically can’t compete on price. Instead, you’ll need to offer value in a different way, usually through high quality product education, service or selection. For more information on how to pick a profitable niche and add value, see this post on getting a product to promote.
2. Syncing inventory is tough and results in out-of-stock items
Solution: The simplest way to mitigate this problem is to do business with multiple suppliers with overlapping product lines. It’s inherently dangerous to rely on a single supplier. Having two suppliers doubles the chance that the item will be in stock and designed for shipment.
Eventually, you’ll sell a customer an out-of-stock item. Instead of canceling an order, provide the customer an upgraded product at no cost! You might not make much-if any-money on the order, but you’ll likely develop a loyal brand advocate.
3. It’s tough to sell items that you never see
Solution: In today’s world, it’s easy to become an expert in almost everything through information online. Selling products from manufacturers with detailed websites will allow you to become intimately familiar with an item line without ever having touched an actual item. So when you really do need to answer specific question about a product, a quick call in your supplier or manufacturer will provide you with the solution you need.
You can even purchase your most popular things to get acquainted with them, then resell them as “used” or “refurbished,” often recouping most of your investment.
4. Involving a third party will lead to more fulfillment errors
Solution: Every drop shippers make occasional mistakes, and mediocre ones make some of them. Suppliers are fairly good about paying to treat problems, but when they’re not, you have to be prepared to spend what’s essential to resolve the problem for the customer.
By trying to blame your supplier for any fulfillment problem, you’re likely to appear as amateurish and unprofessional. Similarly, if you’re unwilling to ship out an inexpensive replacement part to a customer because xbsnzf supplier won’t cover the price, your reputation will almost certainly suffer.
One of the costs of drop shipping convenience is the cost of remedying logistical problems. If you accept it as a price of doing business-and always be certain to place your customer first-it shouldn’t be considered a long term issue.
The last word on drop shipping
Is drop shipping the road to overnight ecommerce success? Absolutely not. Just like any an online success store, you’ll have to invest as time passes in a quality website, marketing, and customer care.
But drop shipping does provide a simple way to start and the opportunity to leverage other people’s capital while not having to invest thousands of your. When managed correctly, it can make up the foundation of your own an online success store.