Business & Finance Electronic Commerce

Dropshipping - Things That Online Retailers Should Look Out For in Dropshipping - Part II

We are done discussing "The Product".
Now let us move to the next important things that you should consider when starting an online dropshipping business.
Let us focus on dropshippers, risk and web page.
The Dropshipper Find a real and trust worthy dropshipper.
It is important for you to verify the credibility of your dropshipper because there are lots of individuals who are acting as a real one.
Early this year the number of fraudulent group of people in the industry has been tremendously increasing.
They are group of individuals posing as real wholesale dropshippers.
Tips o One of the best ways to find a legitimate wholesale dropshipper is through directories such as Salehoo.
They provide a list of suppliers and dropshippers who are pre-verified where you can choose from.
o Avoid individuals that offer you a listing of dropshippers for hundreds of dollars.
You also need to stay away from person who will charge monthly membership fee so you can access their database.
They will not help you in your business.
There will come a time that you will discover that these persons are earning more money than you do.
Remember the purpose of dropshippers for your business is to save time and money.
Risk "Back orders" and "returns" are the most common risks in dropshipping business.
This is an inevitable in a dropshipping business.
You have to face and deal with it.
Since you will be using dropshippers, you have to prepare for situations when your customer placed an order for an item that is out of stock, will not be available for immediate dispatch or they want to return an item for whatever reason.
Tips o Whenever situations like out of stocks or returns occur, you have to work these out with your dropshipper.
Get all the necessary details needed so you can provide your customers with definite answers.
This applies to both back orders and returns.
Therefore, it is important that you have a well-established business policy and supplier agreement when it comes to back orders and returns.
o Get in touch with your customers.
You have to apologize for any inconvenience that you may have caused them.
Keep them informed of the situation.
Ask them what they want (whether if they want to cancel the order), what will be done and what should they expect (new delivery date or number of days when payment will be credited back).
Web page o Create and register a web page for your online business.
o Register the business with the department which regulates online industry in the country where you are conducting your business.
o Register with the Tax office to get a Tax ID number and file taxes each year.
Remember that having a registered business will increase your credibility.
Tips o Do not use either a free or personal web page for your online store.
o Do not send spam messages.
Send messages and updates to customers who subscribed for it.

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