Drop Shipping: The Eight Most Common Mistakes
Using a drop shipper can be a great idea, but be wary of the following mistakes that can be made.
1. Accepting the first drop shipper you find without looking carefully at their operation is a mistake. You need to find out everything you can, your business will depend on them.
Using only one drop shipper has advantages, but is the same as putting all your eggs in one basket. If the drop shipper is out of stock or worse, goes out of business, so could you.
2. Failing to update your stock information. Most drop shippers supply stock information. If you don't keep this up to date you can find customers buying products from you which you can't supply. This is not good for customer relations and may send your site visitors elsewhere.
3. Failing to learn about your products. It is likely that you will have to outsource some aspects of your business, but you should at least try to understand all of it. If you don't understand your product you won't be able to provide good customer service.
Customers deal with you, not with your drop ship supplier. Be sure you know the answer to the common questions, what is it made of, what colors does it come in, which sizes etc. etc.
4. Failing to learn about the drop ship suppliers return policy until you need it. Many drop ship suppliers don't accept returns, they expect you to handle them and refund the customer. Any refund due between you and the drop shipper is a separate issue.
Learn about this before you need it, customers will praise a company which gives refunds promptly and takes care of errors or breakages. They are far less impressed by a company that doesn't know what it is doing. It's very easy to give the impression that you are trying to avoid responsibility.
5. Failing to Add Value. When a product is offered by a drop ship supplier, it is very unlikely that you will be the only online store to sell the product. To differentiate yourself from the others, add value to the purchase with a bonus offer.
6. Failing to understand your suppliers shipping. There is no point in offering expedited delivery on your website if your drop ship supplier does not offer the same thing. Many companies offer next day delivery if orders are received by a certain time, be sure your website reflects what you can deliver, otherwise customers will get upset.
7. Failing to understand your role. Many new e-business owners spend all their time modifying the pages of their website in the belief that a change here or there will help them to make a sale.
This may be true once the site is attracting traffic, but until then your role is to bring traffic to the site. Without traffic you cannot make sales, any action to bring in more traffic should be high on your list. Once the traffic comes in then you can study it's behavior and modify the site accordingly. Your main role is to find ways to bring in traffic.
8. Failing to keep up to date. Many markets are seasonal and your drop ship supplier knows this. He will often have seasonal offers or even seasonal products. You need to be sure your website is kept updated, give your customers the benefit of any seasonal offers and don't try to sell
Spring seasonal items in Fall when they aren't available. The import of products is not a one-off operation, learn how to do it and do it as often as you can to keep your stock list up to date.
by: Kirsty Hale
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