Challenges of drop shipping
Below are a few issues and their answers which can assist you in your company’s endeavour to make money through dropship.
Customer Services
Responding to customer queries in time is critical in building a favourable image. Alas, the characteristics of dropshipping does not permit this. You’ll be liable to your clients with no first hand understanding yourself, due to all the shipping going through your provider. You won’t know when precisely the sequence will ship, when will the arrangement arrive, why will there be a delay, etc.. You are going to need to forward the questions to your providers, wait for a reply, then answer to your customer. Aside from that, there is not much control you have here.
Not so wholesale
Drop shipping companies run on the notion of purchasing at wholesale prices and selling at regular rates. But when you look at the providers’ point of view, this way is quite unprofitable for them. You are not technically purchasing products in bulk. Instead, the provider is sending out one or two things at one time. Locating suppliers that are fine with this particular model, and agree to ship goods at wholesale costs, is hard. The answer here would be to research and find suppliers that are effective in your particular niche. There are wholesale providers working happily with the dropshipping model – you just need to find them. Artisan is a great choice to take into account. A good supplier is essential to dropshipping success.
Merchandise returns
Internet shopping has earned the confidence of individuals because of a fundamental attribute – promise of return. If folks do not enjoy the standard of what they selected, they could return the merchandise to receive their cash back. Likewise, this procedure also covers the cases where the item is damaged or faulty. In fall shipping, the customer will require the compensation from you. But you are going to need to be certain that you get your money straight from the provider as well. The number of communications is more and the procedure is hence slower. Therefore, your solution would be to decide on a provider who will deal with these kinds of situations professionally.
Competition
The providers you tote will not be supplying the things just to your online shop. There’ll be tens of thousands, sometimes even countless different shops selling the same product as you. This high competition could make you narrow your profit margins. At times, you might even find opponents who are selling the item at a cost that will bring a reduction from you. To handle this challenge, you have to do just two things. To begin with, pick a shop market that’s somewhat unique. You don’t need to be worried about the excess competition and individuals will be drawn to the various items in your store that only you, and a handful of other suppliers, have. Second, do not compromise on the provider – a good provide is absolutely necessary for your dropship business.