Drop shipping is the ideal businesses for that want to earn the whopping amount of money in the shortest period of the time and do not have any investment to put in. It is the ideal business for those who really want to do something in the real life. You can start from nothing, no financial involvement, no worries about buying products, no matter about paying rents for the warehouses and retail shops, and nothing about packing the stuff.
All that mentioned above is as true as narrated, but unfortunately, in real life, things do not go as rosy as it seems. The business you do in real life, where your physical involvement is required is completely different than drop shipping. Before this, for starting a drop shipping store, you were required to have a website, but thanks for the Amazon, eBay, and other marketplaces, which already have given you the opportunity to put their stuff on our walls. But, still, you are involved in a very hectic job, not physically but mentally.
The biggest advantage of drop shipping store is you have no need to buy products and manage them, you only put their stuff in your place, and sell them, after that pay the retailer the amount in which you already sold the product. The product will directly go from the distributor or manufacturer to the customer; you have no headache of all this process. But, the thing is customer does not know that you are buying the stuff and outsourcing this. He only knows that you are the real owner of the store, and selling the products online. Anything wrong happens while in the process of selling, you will directly be responsible for all the mess. So, your reputation will be in handed of the third person, whom you do not know. I am going to mention some of the Challenges in drop shipping business you face:
Product quality and shipping:
As I mention the biggest advantage you have is, you are not required to manage the stuff or pay the bills of warehouse or retailer shop. You have no headache of packing the product or to hand over the customer, but at the same time, it would be your biggest disadvantage.
They are packing the product; negligence in the process will be considered your mistake. And your store will be accountable for that. So, you do not the actual quality of the product, you do not know, what the product was which has been shipped.
Sometimes in hurry, the workers or salesman can ship a wrong product, or wrong size or color, this can be very embarrassing for you. Your reputation is on the risk, the retailer will catch the amount for the product. You are responsible for the damage in the product while shipping.
A very known person of this business claimed that this is considered as one of the biggest challenges he faces in this drop shipping business, to hand over the product in safely. Most of the product does not remain in the condition when they were shipped or packed. If the customer is not happy with the product, he can give back that, and reshipping will be upon your shoulders.
Related Article: 5 Best Inspirational Dropshipping Success Stories.
Handling returns and refunds:
That is the most challenging thing as a beginner when you face this kind of rejection. When your product about to receive to the customer, and the person who received the product, emailed you about the quality of the product or product is damaged or broken, and he wants his payment or wants a replacement.
So, according to the customer, you are the seller, he is unaware of the fact that you are doing this via drop shipping where you are selling someone else product.
So, in this case, you need to bear the loss of the product, because you are doing it via Drop shipping, you cannot provide an address for returning back that product. So, you should pay the amount back to the customer, without of saying him/her to take the picture of that product, send it to me. You need to trust the person, he/she ordering you, want the product; any damaged product which has been delivered is your responsibility according to the customer. In this case, you are getting a loss, and if it happens in the starting days of your drop shipping store, or in your first sale, it will become difficult to manage. Anyhow for the branding of the store, you have to bear the loss.
When it comes to the product selection for your drop shipping store, everyone beginner becomes double-minded, he would always think, either he should go for the general niche or deep down to select a perfect product.
Product selection is without of any single doubt the most important part of the drop shipping business. If you select a niche or product, which got so much competition, you can never be able to a successful drop shipper.
You need to see the product according to the customer point of view, for which product the customer is dying. If you start selling worm clothes in Asian countries, the product will not sell out there; you should start this Business in England. So, the product selection and the target country matter a lot to become a successful drop shipper.
Most of the people who start drop shipping business and failed, the main reason, is selling the wrong items to the wrong people. The product is never wrong, the people, you are targeting are wrong, they need something else. Having the right item, selling to the right and the hungry crowd is the key to success in Drop shipping store.
According to my research, 95% of the success in drop shipping business comes from picking the right product for the right people.
One the best and always working tip, I am going to share with you. You should always look a hungry crowd, for example, if you selected a niche about mobile phone cover, that covers will not impress the audience, the customer can pick that cover, the plastic covers from any part of the world. What the special thing, you are offering, if you offer them the mobile cover with dog pictures, a cute dog has been made over the cover, it will pick the dog lovers. So, you are especially targeting dog lovers. I always loved dogs, and I am going to pick that little product, that does not cost so much.
Do not go broad for selling items, though there is a successful businessman who is running a good business and hitting the broad product. But, for doing this, you need great experience; if you are a beginner, it would be better for you to select a product, by going deep narrow.
Always hit a hungry crow, a little one, gather the audience of a special kind and start selling your product via drop shipping. The broad selection of the product is trial and error process, which needs special kind of expertise.
Item Out of the stock:
Though about all of the companies and big brand try hard to inform their partner about the product availability, you are not the only one, to whom they are handling. You posted a picture of the product, and confirm the order in first place, and when the order transfers to the warehouse or retailer, you will be shocked to hear, the product is out of the stock, and you will have to cancel the order.
Your reputation will be spoil in this way, the level of damage you cannot even imagine. The customer who was very important to you will never come back. So, the idea to handle such situations is to call to the warehouse about the availability of the product. After that, confirm the order, and transfer it to the second phase of shipping and packing.
Or you can automate this process and keep the stock update automatically then you need to use some WordPress plugin to import products from aliexpress and push it to woocommerce. Some of them are Alidropship, woodropship, and ezusy. But I personally recommended you go with a combination of Shopify and Oberlo. Because Oberlo is a free app and you can have a 14 day free trial on Shopify, so there is nothing to lose. Literally.
Delay with Order Processing:
When you love something online about products, you directly order that and want the product immediately should handover to you.You are not about to wait, so, if you say to the customer, that product will handover to you within two weeks, it will be like spraying salt to the wound.
In most of the cases, even the customer is ready to take the product within two weeks, when you will go to hand over the product, the most possibly will not attend the salesman to collect the product.This is the one side, and the other is not confirming the order.
When you put an order, and nothing coming back to you about confirming or shipping, what would be your response? Most probably, you will prefer to cancel the order. The best time, in which you should confirm the order, is within 24 hours. So, most of the drop shipping owners try to respond to their customer within 24 hours.
Damage product or wrong address
Sometimes when your warehouse shipped the product, the wrong quantities send out there. And it will be upon you to pay for all the products which have been shipped. So, you can get more loss the benefits; try to check the invoice bills before the product leaves the warehouse or retailer shop.
You even can send the wrong product to a wrong person, sometimes, when a customer ordered something and the other customer ordered other things, the product shipping employee can mix the order, and can exchange the products. Always check the order before shipping any product to the order; this can make you do fewer mistakes
A damaged product, on the other hand, is the biggest challenge. Especially, if you are selling glass products, or decorating pieces or furniture products, it almost becomes difficult to handle the product in the condition it was packed.You may charge the extra charges for shipping this kind of products, but the shipping quality should be better than normal products. Ultimately our goal is to make happy to the customer, which is making business with us.
So, something like this happened to you, mean a damaged product arrived at the customer, you should make a deal with the retailer or warehouse owner to replace the product immediately.It can put a positive impact on you to your customer, at the end, it is you which is dealing with them they do not know the warehouse or retailer.
Your ultimate challenge is to make happy to your customer, the customer care, the product, and the shipping services all groups together to make a good company. You should focus on each and every step of your product going, at the end you are running a drop shipping store, you have the traffic and customer after that you have started it. It is your responsibility to look at every step of your business.
Try to put the real images of the product without of Photoshop, the customer will have a good eye on the product, and will not expect something else. Be honest to the customer, if you try to fake out the customer, end of the day, your business will start lowering down. You should do the business with the narrative of, give benefit, and take benefits.
Do not promises which you cannot fulfill, try to obey the order shipping, and be clear to the customer about the shipping charges. Adding shipping charges while making invoices can annoy the customer.These were some challenges you can face while starting a drop shipping business.