Drop shipping companies have provided many people with the opportunity to start their own online business with minimum cost. To many people this may seem a great idea, full of benefits. Since drop shipping companies are responsible for inventory and taking care of delivery, people believe that online business will be a major success. However, we should remember that nothing is without drawbacks.
There are potential pitfalls we need to watch out for and here are the top eight pitfalls to drop shipping.
1. Since, everything is handled by the shipping company, you have no idea on how the product is packed and if the quality is acceptable or not.
2. If the drop shipping company with which you are doing business does not provide quality services such as late delivery of the product or sending wrong products to customers, you may not get a good feed back at all.
3. At times, you cannot be sure that a shipping company is authentic or not, in other words will it scam your customers or not? The internet is loaded with less reputable companies claiming to be drop ship wholesalers. So finding the right kind of help is nearly impossible these days, especially on the net.
4. The internet is a place where every one will be selling products online, so you will not be free from competition. At times charging the right price will be quite difficult due to high costs such as of the shipping companies.
5. There may be inventory issues as well. If you do not have control over your inventory your customers may be facing problems such as delay in delivery and other inventory issues. If it takes too long they may ask for a refund and go some where else.
6. With high cost, your prices are no doubt going to be high as well. With high prices fewer people will visit your site, so in order to be successful you need to have a good traffic drive.
7. Drop shipping companies sometimes show items in their inventory which are no longer in stock. When the customer pays for that particular product it is then that the shipping company will inform you and your customer that the product paid for is currently not available. This will no doubt lead to a bad business reputation. For this reason, at times it is best that you have your own stock with you.
8. You should make sure that you know what a shipping company’s return policy is. If your customer wants to return a product and the shipping company does not accept it, you will be stuck with the product and will lose on profits.
These are eight of the pitfalls when it comes to drop shipping. It does not mean that you stop using the services of these companies because not all are bad and if you do where will you keep your inventory? It is up to the retailer to find a good shipping company and up to the customer to check the feed back before moving on to buy the product.