To start with, we have seen a lot of online stores launched with great fanfare, only to fold-up a short time later.
We have also witnessed some of these failures firsthand. However, while there are different potential factors that can contribute to a store’s folding, we have rightly discovered that several store owners are failing in the same vital area; dropshipping.
However, when it’s done right, dropshipping can be extremely beneficial for an e-commerce store.
Instead of worry about storing inventory yourself, dropshipping enables one to set up a system where ordered or purchased products are forwarded directly from the manufacturer to the customer.
Inasmuch as this could minimize overhead and streamline your shipping, several entrepreneurs fail to identify these benefits due to a few, but deadly mistakes. Here’s a closer view on the errors you (as an digital market or online shop owner) must avoid when launching dropshipping for your store:
Selecting The Wrong Supplier
Apart from selecting the right niche for your online store, some business decisions are more important than selecting the right supplier. Your supplier will impact everything from product quality to delivery times, therefore it is vital that you pick someone or a supplier that will deliver the results you need.
More so, in checkmating reviews and testimonials for your potential suppliers, consider placing a test order. This will give you firsthand experience with the shipping process and aid you in seeing whether the products meet your standards.
Relying On A Single Vendor
Although selecting a quality supplier is a vital step, never let yourself to become complacent. What happens if your supplier runs out of stock of one of your top-selling items? Worse yet, what if it goes out of business entirely?
If you have put all your eggs in one basket, such problems may jeopardize your efforts to rise your online store.
Consistently, you must have a plan B –which is “a backup supplier”. Why? This is because, if anything happens to your primary vendor, you would still be capable of making sales and fulfilling customer orders.
Be careful that your contract with your primary vendor doesn’t prohibit you from ordering from others.
Unaffordable/Surprise Shipping Fees
When outlining product prices on your website, are you upfront with your shipping fees?
Inasmuch as high shipping costs may often be cited as the top reason why shoppers abandon their carts, even worse are the “unaffordable/surprise” shipping costs that aren’t visible until the end of the checkout.
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In order to retain your customers’ happiness, you need to make your shipping costs clear from the onset. Several retailers find it best to use a consistent flat rate, or to add a “shipping calculator” tool to their orders page.
However, you must not underestimate the power of free shipping, so far as it doesn’t affect your margins.
Lack Of “After-purchase Tracking”
A lot of Customers, if not all, at some point, crave to know when they will receive their order after purchasing from an online store. Unfortunately, too many new dropshipping businesses assume that their interactions with the customer end the moment they click the “checkout“ button.
When there’s no effective communication between the store and its customers, the customers might end up thinking that your store is another scam out there.
Therefore, to provide your customers with peace of mind and zero complaints, ensure that you provide an easy-to-use order tracking system with the assistance of your vendor.
You can also forward email updates when an order is confirmed or shipped. Consistent communication is especially crucial when a shipping delay occurs or if an item is temporarily out of stock. Supplying quality service in this regard is key for retaining customer satisfaction.
When all these are done right, dropshipping could be a cornerstone of your business model, assisting you in forward orders to your customers in a timely and efficient manner. As you take steps to eliminate these deadly mistakes from your business model, you will be capable of providing the quality service your customers deserve and demand.