Truths About Starting a Dropshipping Business

...

Many times what we see as a ‘piece of cake’ ends up a tasteless bite. Things often look good from the outside prospective, however, when you go deeper, it is not always what it seemed. The realities begin to open up in front of you. Same goes with Dropshipping. People think of it as a very positive and smooth path to travel. They do not take the challenges into consideration, but they do exist. There are some hard facts to be revealed and knowing them beforehand is important for you. Here are some truths about starting a Dropshipping Business.

PROFIT MARGIN

The first and foremost goal of any business is profit. All of us wants to earn a seven-digit income. Suppliers offer a lesser price to those who purchase from them in higher quantity. Traditionally, it’s quite common to see people enjoying discounts when they buy products in big numbers. But for a Drop shipper, the rates are higher. The reason being that you cannot commit to big orders daily. More to that, the shipping cost will also be more. Some even charge a drop shipping fee.

SUPPLIER COMMINICATION

In the beginning, people take finding a supplier a tough task. We can tell you that sometimes communication with that supplier could be even tougher. As you don’t hold any stock yourselves, you don’t know about their status. You will continue to market the product without the knowledge if the item is even in stock with the supplier. Miscommunication may also lead to the sharing of incorrect bills, billing address, product name, etc. This can make the whole process really tough for you. You need to try to find a balance. Whether to focus on convincing the customer or jelling in with the supplier.

CUT-THROAT COMPETITION

It will not be rare for you to encounter a person selling the same thing as you before you even start the operation. The market will not spare if you are not promising with your skills, policies, and products. While you are planning to step in, someone in another corner of the world might have commenced his/her business at the same very moment. Marketing is the resort here.

RETURNS

Newbies in the Drop shipping industry often forget to dedicate some time for a Returns Policy. You cannot neglect its significance. Make sure that you and your supplier are on the same page. You should know about your supplier’s policies. The terms and conditions on what factors make a product returnable and what is not returnable needs to be made crystal clear. Established suppliers facilitate you with Return Authorization Number to deal with the issues. Returns and Refunds section should be equipped with all the necessary terms for the customers.

Returns and Refunds aren’t always a bad thing. Click here to read up on how to deal with them.