Strategies to overcome dropshipping challenges

DROPSHIPPING CHALLENGES

Many start-ups and small retailers are finding it easy to cope up with inventory and fulfilment processes using a dropshipping model for their business.

Without having to stock your own inventory, rent a warehouse, or even, fulfilling your customer’s orders – a dropshipping business model is helping business owners easily jump into the massively growing world of eCommerce.

Doesn’t it sound interesting?  But, with the popularity of this model a number of challenges showed up and are still haunting many business owners.

There are a number of articles that may have provided you insights on the good part of a dropshipping model, however, not many have spoken about the on-going issues that are hampering growth.

By understanding dropshipping business you yourself can prepare a list of common questions, however, for those who are unaware of the process can continue reading this article.

What can be those dropshipping situations that can affect your business growth?

1. In case of no product availability

Many dropshippping companies try and offer the best service to stay up in the business. However, still many will fail to process your store’s orders due to not stock in hand.

Frequent fulfilment delays, or, the situation when you’ll have to deny your customers for their orders will automatically hamper growth for your selling business.

Out of stock

How can you deal with it?

Firstly, working with a single dropshipping company is not all a good idea. Ensure you are aware of few alternatives from which you can source product and fulfil your customer’s orders without delay.

For your customers:

Secondly, have a direct contact with your customers informing them of the delay. Also, at the same time, you can pitch available alternatives relevant to their purchase order. This can increase the chances of them going with the alternate product, as some of them would like to have the product as soon as possible

2. In case of late shipments

There are chances when your dropshipping company may fail to communicate with the order shipment delay while you may think it has been shipped. Usually such companies inform once order shipped, however, many retailers who don’t keep a track of shipment confirmation often struggle to deal with their annoyed customers who are waiting for their product.

How can you deal with it?

Ideally, you should immediately contact your dropshipping company for the shipment status 24 hours after you have sent them the order details. So, in the case of delay, you will still have time in hand to get the matter solved, or, check for an alternate to ensure the earliest delivery.

These days many retailers have adopted dropship management software, which helps them to consolidate their multiple suppliers at one place and communicate with them in real-time.

dropship

For your customers:

Today’s customers expect a quick delivery, and, if someone is shopping with you for the first time, always remember they are putting you to the test. They’ll immediately start calling you, and your answer/action will determine their experience with your brand.

3. In case of wrong product shipped/arrived damaged

Dropshipping companies regularly dropship hundreds and thousands of orders every single day, hence, there are chances of wrong or damaged products shipped to your customers. In such cases, an unhappy customer will blame your brand and not the dropshipping company.

Doesn’t matter what went wrong in the fulfilment process, it is your brand that is responsible and who suffers in the end.

How can you deal with it?

Not all dropshipping companies provide safety for your customer’s order, therefore; you need to ensure that you deal with only the ones that have a return policy in place. It will become easy to inform your customers about the returns process and you can ensure your droshipping company will entertain such situations, as and when they occur.

For your customers:

Customers who are already annoyed due to late shipment, further delay in processing those returns will their kill trust for your brand. Ensure you call and instruct them on what to do, and simultaneously apologize and offer a special discount that can help them overcome their bad experience. Doing so, they’ll not hesitate to make another purchase from your store.

4. In case of less items shipped

You would not like to offer your customer’s a bad shopping experience by delivering them incomplete purchase orders. And, such instances can be quite annoying to you, despite providing the correct customer’s order details.

How can you deal with it?

There is a way to stop it from occurring. Always make to match customer order details in the invoice they generate and send you before they ship your customer’s orders. Keeping a track on those invoices will give a chance to avoid mistakes and ensure correct quantity is being shipped to your customers.

For your customers:

Customer who places multiple purchase orders for the same product may happen in error, however, until the customer intimates you for any changes they’ll expect you ship them product quantity as per ordered.

5. In case order shipped to a wrong location

Dropshipping companies will expect you to communicate your customer’s order details via phone or email. Hence, the transparency of your customer’s order details will determine the success of the delivery.

How can you deal with it?

Re-shipping products always affect the capital; hence, you would like to provide a complete address proof for every customer’s order. Connecting with dropshipping companies via email rather than a phone call will automatically eliminate wrong information or confusions.

Also, sending emails you have spell-checked prompts to ensure you always use correct shipping details to your dropshippers.

For your customers:

Products shipped to incorrect address results to a waste of time and cost, as you’ll have to follow the whole process again. This can also lead to a worst situation when your annoyed customers requests for a cancellation and immediate refund (if already paid for the purchase order).

Wrapping up

Dropshipping can make your selling business easy; however, it greatly depends on the suppliers or manufacturers you deal with.

Considering major dropshipping challenges, luckily, there are ways to rectify and even avoid them from happening in future.
All the best 🙂

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