)

Insight

2 min read

How To Ensure That Your Dropshipping Business Succeed

Explore five critical factors that can make or break your dropshipping business—and how to set yourself up for success.

Published on May 15, 2017

On this page

With Internet shopping becoming more popular every day, the importance of having the right fulfillment center backing your dropshipping business is now of the utmost importance. A supplier can mean the difference between failure and success and can give you your best chance of business growth. Where your items are warehoused, how they are shipped, these things and more go into making or breaking your dropshipping business.

Return Policy

No one wants items returned, but it’s inevitable. In writing, make sure you get the details regarding the return policy of your supplier. This is not something that should be agreed-upon through a verbal agreement. Whether the product your customer received is defective or if they simply have decided that they no longer want it, your e-commerce site must assure a positive experience throughout the return procedure. To handle problem situations and answer questions ideally, you will need to be filled in as to how your supplier plans to deal with the issue of returns.

Single Order

One of the most attractive things about a dropshipping business is that you, do not have to keep inventory. Unfortunately, to get the best prices, you may have to submit bulk orders. If, however, your supplier will ship one item sans any additional fees, that’s best for you. The entire purpose of dropshipping can be defeated by your having to buy in bulk just to keep your prices in competition. The fulfillment center is your best “middle ground,” particularly if you don’t have the space for storage or the ability to adequately ship items on your own.

Communication Channels

Customers don’t always understand the concept of a dropshipping business. If they have a problem or concern, they may well expect to deal with you personally. A representative should be assigned to you/your business through a reliable fulfillment center/supplier to deal with customers on a one-to-one basis. It can be a distinct advantage. And if the company has more than one option when it comes to communication (i.e. instant messaging, email, telephone), all the better.

Shipping Options

The shipping methods that your dropshipping supplier uses are crucial. If you’ve ever ordered anything online, you’ve probably notice that there are usually several options – all depending upon how quickly you want your order to arrive. Many buyers don’t mind waiting for their shipment to arrive through standard mail because it’s cheaper. But there are those who want it now and are willing to pay the price. You must not only offer but be able to fulfill several different delivery times/methods. And if your business is operating on an international level, shipping presents all-new issues.

Quality Products

What is any business without products of (at the very least) acceptable quality? Poor quality products are going to mean no reorders, and no re-orders will eventually shut down your business. Your reputation will go right down the tubes if your dropshipping business is dealing with shoddy products, even if all other areas of concern are met satisfactorily.

When searching for the perfect fulfillment center, it is vital that you remember that they should be willing and capable of handling warranties, damages, and returns. Also keep in mind that because every customer and situation is exclusive in its own way, you may need very specific damage inspection, RMA’s, or warranty claims. Does your fulfillment center or supplier measure up?

Other posts that you might like: