You have a business idea but do not dare to implement it because you are afraid to spend on an investment and the implementation process is quite complicated? If you receive an offer to cooperate as a retailer, do not need to bear the costs of importing, shipping, warehousing … and can run this business anywhere in the world, are you ready to get started?
The following article Ola City wants to share with you about the implementation principles and 9 Dropshipping business tips for beginners. Let’s consult and apply these to your business model!
1. Solve the problem that the supplier sends the wrong order to your customer
Whether a supplier is large or small, they can always make mistakes. In this case you can solve the problem in 3 ways:
- Self-acceptance to customers
In any case, even if it’s the supplier’s fault, you shouldn’t try to blame them because it really doesn’t solve the problem and makes your image look unprofessional. Customers do not care whether you are a supplier or a Dropshipper, so they do not need to know whose fault it is. It is best in this case that you should take responsibility for your customers, apologize and compensate them for damages.
- Make the product relevant to the customer
Depending on the level of error to negotiate with the customer, you can give a partial refund or support a free exchange.
- Ask the supplier for compensation
Although you are responsible to the customer for this error, it does not mean that you have to suffer the loss of profits. Vendors are responsible for correcting their own errors. You can ask them to pay the shipping costs when making a return for a customer.
2. Manage inventory and work with multiple suppliers
Dropshipping people face the biggest obstacle of not being able to keep a close eye on the amount of inventory for sale, so the situation of constantly apologizing to customers because their orders are out of stock happens often. This is not a professional way to work and you will inevitably lose your guests. You can refer to a few ways to solve this problem below.
- Working with multiple suppliers
The fact that you work with multiple suppliers at the same time will help you limit out-of-stock situations. You will easily change to another supplier if the other supplier is out of stock and your customers do not feel inconvenienced by having to change to another product or have to wait too long to receive the goods
- Item selection
Out of stock can be persistent if it’s not essential, so choose high-consumer products and be sure your suppliers are available for you at any time.
- Can use substitute products
If there are items that are almost identical in terms of features and uses, you can actively advise customers to switch to another product with the same characteristics if the item they choose is out of stock.
- Regularly work with suppliers
In order to control the amount of inventory well, you need to constantly talk to your suppliers to update accurate data to avoid unsatisfied customers when coming to your booth.
- How to handle faulty orders
Customers will think you are acting unprofessionally if they intentionally fail to process their faulty order or handle it irresponsibly. So in this situation you try to please this customer by exchanging the customer for a better product without taking more money.
3. Fulfill orders
Working with multiple suppliers helps you avoid out of stock. However, every time there is a new order and all the suppliers can satisfy you, which supplier will you choose to work with?
– Select preferred supplier: Please select a supplier that you feel is the most suitable to pass the order information to them first, the other suppliers are just a backup case for the situation that the priority house cannot process the order.
– Select a supplier based on the location of the customer : This helps you reduce delivery times, your customers will be happier when they receive the goods before they expect.
– Based on price: In business, everyone wants to maximize their profits, so choosing a supplier with a reasonable price will help you work more efficiently. Compare prices between your suppliers before making a decision to transfer a new order to them.
4. Security issues and fraud
You will be legally responsible if you intentionally store customer payment information. Therefore, absolutely do not store any information. Instead, it is possible to use payment gateways with e-wallets that are popular today.
Recognizing and dealing with fraudulent orders:
You cannot avoid cases of bad play, which will waste time and affect your business. Therefore, it is necessary to be very vigilant in such matters. Some specific examples so you can recognize that they are junk orders and should not be handled: email addresses that appear to be fabricated with meaningless names; placing too many orders at once; different billing and shipping addresses…
When you encounter this suspicious situation, please contact them to confirm this order with them. The exchange process will help you see if the customer is trustworthy or not.
5. Understand how to refund when a customer requests a return
There is a high chance that you have been caught in fraudulent orders. The “people” who place orders have a “conspiracy” to hurt you, so they intentionally disturb your work. In this case, right or wrong, you are still responsible for the refunds to the guest. If the settlement is not reasonable, you will be susceptible to complaints and legal problems if the amount is too large. So learn and learn from your supplier’s experience to get the most satisfactory treatment.
6. Handling profit-related issues
Before you develop your own operating policy, you need to work closely with your supplier to create the most reasonable policy. Fees that can affect your profits include:
- Inventory storage fee
Some suppliers may charge you a fee for keeping items in stock. However, this is unprofessional work and you need to negotiate with them to minimize these unnecessary costs.
- Fee for handling defective goods
Dropshipping people will be responsible for the customer for the defective item and will have to make an exchange for the customer if they request it. The fact that you let the customer pay the shipping fee for this extra order will cause you to lose points and show narrowness in the work process. On the contrary, if you are willing to support customers for this fee, you will win the hearts of customers and increase the likelihood of repeat purchases.
7. Shipping problem
You may find it difficult to have too many orders to process with many different addresses. But now with the explosive development of information technology you can easily set up on the system of the carriers. You need to contact them and ask for cooperation to make your work more convenient and improve the service quality of your business.
8. Take care of customers regularly
Your customers will realize how important they are if you always have a certain interest in the issues they are wondering about. Make a list of the questions your customers have and how to deal with them.
It would be great if you could answer all questions in a timely manner. By using the customer support hotline, you will have the opportunity to take care of them more attentively, any problems that arise will be resolved more quickly and make them feel more satisfied.
9. Focus on marketing
Even though the product is of good quality, the booth is professional but without customers, it’s all nil. So you must have a strategy to attract customers. To increase your traffic as a new dropshipper, you should focus on the best marketing channels like search engine optimization (SEO), Facebook ads and running Google Ads.
This allows you to generate sales and revenue from the start, helping you to scale quickly, increasing your competitiveness with the biggest brands and retailers instantly.
Once you have the first customers, you should focus all your attention on them because they are the ones who will evaluate your products and service quality, creating trust for the next customers. Moreover, when you make a good impression, the possibility of customers having the need to buy from you is very high.
Although building a business on the Dropshipping model is quite easy and low-risk, it is not a quick way to earn a great source of income for you. Dropshipping businesses must always have a serious way of working, actively developing services to satisfy customers and turn them into loyal customers. Hopefully, the sharing of Ola City through the above article will help you draw useful experiences. Good luck!
>>> See more useful knowledge about Dropshipping here: https://info.olacity.com/vi/category/kien-thuc/dropshipping/
Ola City Global