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Top 7 Challenges of Running a Dropshipping Business and How to Overcome Them

April 20, 2021 eCommerce TipsEntrepreneurs

Dropshipping business seems like an easy way to do business online. You don’t have to invest a lot of capital or bother about meeting up with product orders. Besides, you can run the dropshipping business from wherever you are. However, just like every other business, dropshipping has its challenges as well.

In Dropshipping business, you are not totally in control of the business process, and you can’t influence the business outcome. Other agents control the order processing and packaging, which leaves you at the mercy of the agents. This is a leading problem with dropshipping business because when an order goes wrong, the business goes wrongs. The good news is that the challenges that come with dropshipping can be rectified. If you are considering starting a drop shipping online business, here are some challenges you may face and how to handle them.

Delayed Order Processing

It can become a problem when you place an order with your supplier, and he delays the order. You can handle this challenge by following up on the order if you don’t get feedback from your supplier after 24 hours. You need to know why your order hasn’t been processed and when it will be processed. This will increase customers’ trust level, especially if your business is still new.

Finding a Reputable Supplier

This is a leading challenge eCommerce store owners face. There are many suppliers out there, but it can be hard to get a consistent and reputable one that isn’t fraudulent. The best way to handle this challenge is to search for suppliers using dropshipping supplier catalogs. On this catalog, you will find a list for you to choose a supplier. Also, ensure that your supplier is someone who knows your niche and is on the same page with you in terms of supplier fees, scalability, and order minimums.

Shipping the Wrong Item to a Customer

Many online business owners have had this problem one time or the other. This problem indicates poor customer service, and it can tarnish your business’s reputation. Some eCommerce store owners have admitted that they lost customers because of this mistake. Regardless of how the business ends, the business owner takes the blame alone. As much as this mistake can leave a bad impression on your business, you can handle it and reduce the negative impression.

You can avoid this problem by knowing your drop shopper return policies. This will help you guide the customer on the action to take when the issue arises. You can also give the customer a discount on their next purchase as a way of apologizing to them.

Goods Out of Stock

This is a common challenge with dropshipping business. Most manufacturers and processing agents try as much as possible to update their eCommerce partners about available stocks, but at times the goods may be out of stock or no longer available.

You can overcome this challenge in several ways. You can inform your client. Contacting them through personal channels like a phone call works better in this case. Customers prefer being contacted personally about their orders. You can also suggest to your customer of you can deliver a similar product. Another way you can overcome this challenge is to get the product from another supplier.

Wrong Tracking Code

Wrong tracking code can be for another package, or it can be invalid. Human errors can happen sometimes, especially when your dropshipping company gives out a high number of tracking codes daily.  Handling this challenge is simple. The best way to deal with this minor challenge is to test-track the code before passing it to the customer.

Damaged Arrived Goods

You might get confused about what action to take when goods arrive in poor conditions. You shouldn’t worry yourself much about this problem because it’s not so difficult. The best and easiest way to handle damaged arrived goods is to replace them. Most times, manufacturers give warranties on products. When this happens, you only have to contact the manufacturer to replace the item. However, you should know the terms and conditions of the manufacturer before getting involved with the product.

Goods Shipped to the Wrong Address

Sometimes goods are shipped to invalid or wrong addresses. This happens especially when there are errors with the communication channels. Suppliers handle orders differently. While some prefer using emails, others will opt for a phone call. With a phone call, it’s easier to mix things up. Regardless you can avoid this problem by cross-checking every address before you send it to your supplier. Also, have proof of the shipping address. You won’t have to bear the cost of reshipping the product if the problem isn’t from you.

Endnote

In Dropshipping business, problems are bound to arise because you are not in complete control of the process and outcome of the business. If you are interested in dropshipping business, don’t let the problems discourage you. The challenges may seem tough, but they are easy to handle.

Are you considering starting a dropshipping business? Contact us today at Fulfillman to know more about the services. Our dedicated team will be available to speak with you and discuss your possible dropshipping options. Our experts will provide suitable answers to your questions and concerns. We guarantee you excellent services.