Common Problems Faced by Dropshippers

Dropshipping is a method that stores use to fulfill orders without keeping the items in stock or a warehouse. Stores that use drop shipping fulfillment models sell products to customers by purchasing them from a third-party wholesaler or manufacturer which then ships them to the customers directly, meaning that the store doesn’t need to worry about the shipping process itself. Dropshipping has been around the markets long before the internet, back in the 60s. This business model has revolutionized the world of eCommerce as the internet has had a hand in making it one of the most popular and efficient methods of selling products available. Dropshipping requires much fewer costs than other alternatives since the store doesn’t need a physical retail shop or a warehouse to store products, not to mention the initial cost of the stock merchandise. However, dropshipping comes with its fair share of problems that may cause headaches for many drop shippers. 

We’ve gathered a brief list of the most common issues drop shippers can cross by.

Finding a Supplier

One of the most important elements of dropshipping is having a reliable and high-quality supplier. The reputation and quality of the supplier will reflect significantly on your brand’s image since you won’t be the one creating or storing the products. This is why it’s important to take your time when you’re getting your suppliers because choosing the wrong one can cost you a lot in terms of money and reputation. It’s very important to choose a supplier that can combat the growing threat for sellers based in China who use discounted shipping. Supply chain optimization should be one of your top priorities to beat the competition. The main points you should take into consideration are service fees, the minimum number of orders allowed, years of experience, customer service, efficiency, and methods of ordering. Once you have the list suppliers you’d like to deal with, check around for complaints and reviews to see other people’s first-hand experience.

Running Out of Stock

Items that are running out of stock is one of the most common and annoying problems that any drop shipper could encounter in the industry. If your supplier doesn’t provide you with quick daily inventory reports ahead of time, you may start refunding a lot of money to customers as you discover the problem later, in addition to handling many customer complaints. You should ask for your international suppliers to provide you with the inventory at the end of their workday so it could reflect correctly the next day. Getting updated as soon as possible will help you take items out of the rooster to minimize mistakes.

You can choose to deal with more than one supplier if you’re dealing with an item that sells out fast. There is no guarantee that items will remain in stock for the whole day. When you’re in a pickle, you can reach out to your alternate supplier to help you out. The downside to having more than one supplier for the same item is that you won’t be able to get bulk discounts since you’ll be distributing the load between the two.

Unprofessional Customer Service

While dropshipping can seem much easier than many other forms of business models, it’s quite hard to keep it running smoothly. A lot of drop shippers fail when they are trying to ensure that the customer’s requested products are dispatched. It’s important to keep up with clients during the whole process since it’s vital to your brand image. You shouldn’t completely rely on the services of the wholesaler to satisfy your customers and instead accept feedback from your customers to improve their experience.

Delays

A lot of the behemoths in the eCommerce industry are starting to offer same-day delivery and other quick shipping options thanks to their unlimited resources. Customers are starting to get used to these speeds which may leave you with a bit of a pickle when you’re unable to supply common products available everywhere in a tight time frame. Dropshipping from other countries takes a lot of time, but the competition between the local stores is going to be much lower. Making sure that your products are shipped with tracking capabilities will make you and your customers comfortable during the whole process.

Dropshipping’s momentum doesn’t seem to be slowing down in the next few years at all. There is no shortage of suppliers you could turn to, but you’ll want to make sure you pick the right ones because they’ll be the basis upon which the whole foundation is built. Dropshipping carries its risks, so make sure that you do your homework before you take on the project.