What are the challenges faced by Shopify Drop Shipping entrepreneurs?
Isn’t drop shipping an ideal way to run an online store? Sure, and it seems so easy to do. You do not need to have any stock. Your financial participation is low. Hell, you can start a Shopify print on demand eCommerce store for almost anything. You don’t have to worry about order completion, and one thing that attracts this type of eCommerce is that you can run it from practically any place.
Unfortunately, not all of this is very good in the print on demand Shopify business. When you run a drop-ship business, you are ultimately giving control of most of your business to someone else.
It is not you but the manufacturer or drop shipper who processes your order. You are less likely to be affected when this happens. You may be at the top or bottom of the queue, but you don’t know quickly. You can’t control the packaging and what’s in the pack, and it’s all iceberg tops.
In short, when you pass an order, you lose control of what happens to it. This is where most of the problems start. As the owner of a drop shop myself, I can guarantee you one thing, if something is wrong, it will be an order. If you are thinking of starting an online store, read on. The following is a list of common issues and problems that you may encounter and my recommendations on how to solve them.
Are you ready?
1. Shipping and delivery
Keep in mind that the Internet is the same — worldwide. This means you can place an order worldwide, which increases your shipping costs and shortens your profit margin. “I will charge the customer only for shipping.” This is an option. Keep in mind that you can move faster. If the shipping exceeds the product, many customers will not follow the purchase. An abandoned study of 201 cars found that shop 63% online shoppers say they had to cancel their orders due to excessive shipping.
The good news is that a similar study has found that shop online shoppers have taken steps to get free shipping. It can be used to your advantage. For example; You can use it as an incentive for the customer or set a specific price that they should reach for free shipping.
2. Inventory
Dropshipping eliminates the need to carry inventory, but it also means you lose control over fulfilment. Imagine placing an order. You contact your third-party seller to find out if they are on a previous order and now you are responsible for letting your customer know about this mix.
Not having inventory can save you an initial overhead and relieving you of storing or maintaining it. However, keeping the product on hand ensures that your business can complete the promised time when purchased. Trusting someone else to do the job is always risky.
3. Compliance
Inventory and compliance go hand in hand. One of the advantages of Shopify dropshipping is that you can eliminate the overhead by placing an order with the purchase. But if your supplier messes up the time, inventory, shipping or product itself, it’s not the customer, but the fault.
When you choose Shopify dropshipping, you are confident that your third-party vendor will always have a supply, always on time and still available whenever problems occur. This is a high expectation and high risk.
4. Competition
Remember we talked about the internet around the world? Imagine how many others have the same idea and will use dropshipping. But in case, they have more staff or more money or already have a t-shirt business so that they can offer lower prices or free shipping or free returns. They may have customer support to handle any compliance issues. Maybe they can make a significant discount. How will you get my Shopify print on demand business? Can you guarantee a low price, free shipping and me in 3–5 business days? Think about all the things.
5. Low-profit margin
To compete with other business, you need to give low prices and free if shipping is not reduced. All of this makes your profit margin smaller and smaller. That means you’re facilitating every sale. That means you have to sell a lot to sustain your business. It may take some time to build your customer base so you can support yourself. With such a low profit on each sale, you have to increase the number of transactions. At this point, he is expected to quit his job soon.
6. Item out of stock
Probably the most common of all problems you will experience. Although most manufacturers and order fulfilment companies work hard to inform their e-commerce partners about product availability, it often happens that a product ordered from your store just goes out of stock. Or it has been completely shut down.
Customers prefer personal contact, even if it is about the cancellation of their orders. Also, if possible, try to source the product from another supplier. Alternatively, see if you can get the same product from another manufacturer.
7. Delay with order processing
These ideas have got you to order through your store. You rush to drop it directly to the manufacturer and wait for it to be processed so you can inform the customer that he has sent it and pass the tracking code to them. However, the order is not confirmed.
Average order time is 24 hours to ship print on demand Shopify products. If you hear nothing from the manufacturer or leave the shipper after that, go with them immediately. These days customers are used to processing their orders within 24 hours. It is imperative for your brand that if the order is not processed within that time, you should at least know the reason and almost know when it is going to happen. Why Because the customer can give you a ring. This usually happens if you sell exclusive products and someone has bought through your store for the first time.
8. Wrong item sent to the customer
You can say that this has not happened to me yet. However, you know this is the worst nightmare for many eCommerce store owners, so you are adding this issue to the list. Sending the wrong product to a customer is terrible customer service. This always leaves a false impression regardless of the good wishes of the customer. And whatever the circumstances, you are still the guilty party.
This is the most unfortunate aspect of drop shipping. No matter who made a mistake and who made it, it is always yours and your reputation. The best way to handle: First, know the return policies of your manufacturer or drop shipper. You should know them before you carry your first product. This way, when a customer complaint, you can give them instructions directly on what to do.
Final thoughts
Okay, so you’ll read the pitfalls of drop shipping and think you can be an entrepreneur all night, missing a bit. Don’t bother! There are still many reasons. Reducing overhead costs, easy setup, and an ever-evolving e-commerce market means opening up your T-shirt business.
