The challenges of drop shipping

Drop shipping isn’t all fun and games. There are a fair few issues that could possibly arise. Here are some problems and their solutions that will help you in your business.

Customer service

The backbone of a successful business is good customer service. Responding to client queries on time is key in building a positive brand image. Unfortunately, the nature of drop shipping doesn’t allow this. You will be answerable to your customers without having first hand knowledge yourself. You won’t know when exactly the order will ship, when the order will arrive, why is there a delay, etc. You’ll have to forward the queries to your suppliers, wait for a response, and then answer your client. To handle this, all you can do is make sure you choose a trustworthy supplier. Other than that, there isn’t much control you have here.

Not so wholesale

Drop shipping businesses run on the concept of buying at wholesale rates and selling at regular prices. This is how drop shipping businesses earn profits. However, if you look from the suppliers’ point of view, this method is rather unprofitable for them. You’re not technically buying products in bulk. Instead, the supplier is sending out one or two items at a time. Finding suppliers who are okay with this model and still agree to sell on wholesale prices is hard. The solution here is to research hard. There certainly are wholesale suppliers who work happily with the drop shipping model. Wholesale2b is a good option to consider. You won’t have to face this challenge as such if you choose them.

Product returns

Online shopping has earned the trust of people due to one basic feature; guarantee of return. If people don’t like the quality of what they chose unseen, they can return the product to get their money back. Similarly, this process also covers the cases in which the product is faulty or damaged. In drop shipping, the client will demand the refund from you. However, you’ll have to make sure you get your money back from the supplier too. The chain of communication is longer and the process is slower. Once again, your solution is to opt for a supplier who’ll deal with such situations professionally.

Competition

The suppliers you bag won’t be providing the items just for your online store. There will be tens, sometimes even hundreds, of other stores selling the exact same product as you. This high competition may force you to narrow your profit percentage. Sometimes, you may even find competitors who will be selling the product at a price that would bring a loss to you. To tackle this challenge, you need to do two things. First of all, decide a store niche that is relatively unique. You won’t have to worry about the excessive competition and people will be attracted to the different items on your store. Secondly, don’t compromise on the supplier. Choose the best of the best, and the best isn’t always the cheapest.

Dive into drop shipping businesses with these challenges in mind. Better cautious than sorry!

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