Drop shipping is a simply way to generate a side income, especially since you have no inventory to maintain and less overhead expenses to pay each month. However, it does come with a few challenges. If you’re thinking about putting up a business, here’s a look at potential issues and problems you’ll encounter:
Out of Stock Items
That’s one of the most common challenges to drop shipping. While your ecommerce partners do what they can to provide you with those orders, supply chain problems could delay those shipments. What you can do is reach out to the customer and provide alternatives. You could also try looking for other suppliers to meet that demand.
Not all companies are fast on their feet. If your ecommerce partner takes too long to process those delays, that’s going to mean unhappy and dissatisfied customers, says eCommerce Insiders. You’ll want to make sure you partner up with the right one. This could also happen when your ecommerce partner uses ineffective and unreliable service provider.
An excellent package delivery services is crucial to your business. Talk to your business partner and ask them about the shipping service they use. If they can’t see what’s wrong with their service levels, it might be time to make the switch to another supplier. This time, before you partner up with one, make sure to ask them about the shipping service they use. Great package delivery services can make a difference in your company’s ROI.
When the Wrong Items Are Shipped
As an entrepreneur, you learn early on that inventory feeds could be 90 percent accurate, at best. However, that still means you aren’t doing a good job of satisfying 10 percent of all your drop ship orders. A good supplier can help you improve on those service levels and ensure that 90 turns into 95 or higher. With the right supplier and package delivery services, you have happier customers and a better returns.