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16 Nov 2010 02:44 AM #1
Any advice on how to handle back order issues with drop shipping?
Just like every other seller I want to be prepared for the holiday shoppers. I know there might be a late rush so I don’t want to run into any issues with drop shipping. What are some good ways to make sure I avoid back orders on items that the drop shipper might not have in stock?
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16 Nov 2010 05:29 AM #2The only way to avoid a back order or overselling issue is by keeping an accurate account of inventory. Some platforms allow you to incorporate your stock, the inventory of your drop shipping service (or services if you use more than one) and control your sales.
• You want to monitor the quantity you have and figure out what is available
• Diversify your sources, it’s always good to have a backup drop shipper or use multiple ones
• Use an inventory management system
• Set up alerts that will help you know when stock is low
The best drop shippers keep informative data that helps you the seller not get stuck in a bad situation. If you do get in a “out of stock” situation then make sure you let your customer know up front and don’t be afraid to offer a return. Whatever happens you want to come out of it with positive feedback.Want To Be An eBay Powerseller?This is the Service You Need.
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16 Nov 2010 05:53 AM #3
The over selling issue is one of the main concerns you should think about when even looking into drop shipping. Researching drop shipping companies can help you avoid any negative situation. You want a drop shipper that offers up to date inventory listing and will allow that to be easily integrated into your inventory management system.
If you keep an eye on the inventory then you will be able to avoid this situation. Another option you have is to drop ship some of the inventory to yourself. This helps you keep a check on the drop shipping overall service and allow you to pad your own stock for “just in case” scenarios.
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16 Nov 2010 06:19 AM #4
I didn’t even think about sending items to me. Ha! That’s such a simple, yet wonderful idea. Thanks so much for the advice you have no idea. I’m going to look into setting up a detailed inventory. I try to keep tabs on things, but I know I can do better. I heard Quickbooks is good.
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16 Nov 2010 06:56 AM #5
There are some sellers who use shorter auction times when their stock is low. You can always offer a single listing instead of allowing people to choose quantities. This can keep your sales up and not get you into a out of stock situation.
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16 Nov 2010 07:27 AM #6
Sellers have to keep customer satisfaction up and telling people you sold them an item you don’t have is one of the worst things that can happen. That doesn’t mean you will be done for though so don’t worry. But some people will just ask for their money back and not deal with you again. Others are a little more understanding.
I send out an email automatically after a purchase is made so the buyer/customer knows that I’m on top of the issue. Then you avoid the “where is my product email” a little longer and hopefully the drop shipper gets their inventory back up in that time.
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16 Nov 2010 07:44 AM #7Using the idea of padding your own inventory is a good idea. Kudos! Making an accurate inventory your priority is also going to help. Quickbooks is a good program to use, I use it and am happy with the results.
When you use different drop shippers make sure you pay attention to the SKU (shop keeping units) and that they match the right product. Some drop shippers will have the same SKU but for an entirely different product. If you use Quickbooks this is one of the main things to focus on because you don’t want to lose track of a certain product.
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16 Nov 2010 08:02 AM #8
I think everyone has some level of worry about drop shipping, especially after their initial experience of having to tell the customer that you don’t have the item after all. You want to make a sell, but you have to have the product.
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16 Nov 2010 08:23 AM #9
Drop shipping shouldn’t be looked at as negative. Even though you can run into situations where they are temporarily out of stock, do some research into how this is handled. It could just take a day to resolve or weeks. This is why having multiple sources is ideal.
It also depends on what you are selling (what doesn’t) as some items get in higher demand around this time – computers, cameras, gaming systems – technology products always hit a boost this time of year.
Don’t deal with a drop shipper who doesn’t keep proper inventory or who tries to hide that information from you. Stay away from that and you’ll stay away from selling more items than they can provide.
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16 Nov 2010 08:38 AM #10
I wouldn’t even dream of doing business with a drop shipper without researching their inventory first. The fastest way to get negative feedback and alienate customers is to tell them that you don’t have what they bought from you. Word can travel fast.
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