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New to the World of Drop Shipping? Be Sure to Avoid These 4 Mistakes

 

The ecommerce industry is worth a staggering $220 billion and is growing at a rate of nearly 17% a year. Nearly 23% of all online retailers use drop shipping for a variety of different reasons. With drop shipping, all you have to worry about is selling products on your website. The drop shipping company you hire will be able to fulfill and ship all of the orders that your customers place. With the help of these types of companies, you will be able to grow and expand your business while providing the best customer service possible. Paying a drop shipping company is a great way to minimize the overhead costs you have when starting a new business venture. While using this type of service can be beneficial, there are a variety of mistakes you will need to work to avoid and here are some of them.

1. Worrying Too Much About Shipping Costs

Some ecommerce business owners focus so much on shipping costs that they forget all about other important areas of their company. While it is only natural to want to lower these costs, you need to find a way to work around higher shipping costs. The amount of money you have to charge for shipping will largely depend on where your drop shipping supplier is located. Once you find out what shipping costs they will charge, you can figure it in to the price of your products. Charging a flat rate for shipping is an excellent way to make ordering products easier for your customers. The more convenience you are able to provide to your customers, the easier you will find it to have long-term success.

2. Failing to Put Expectations in the Contract With a Drop Shipping Company

One of the worst things that can happen to an ecommerce site owner is not being able to fulfill a customer’s order due to low stock. While you will need to have a backup plan for situations like this, you can prevent them from happening with the right contract agreement and a reputable drop shipping country. Before signing on to work with a drop shipping company, you need to let them know what type of expectations you have. Putting these expectations in the contract is a great way to hold the drop shipping company accountable for mistakes. If a drop shipping company knows they will be penalized for inventory mix ups, they will be far more likely to do all they can to avoid these problems.

3. Thinking Drop Shipping is the Answer to All of Your Problems

While drop shipping is a great addition to any ecommerce business, it is not the answer to all of your problems. Failing to properly promote your business will make it very hard to sell products. Taking the time to develop an adequate marketing strategy for your new business venture is a must. With a bit of professional help, you will be able to reach a new audience and sell more products. The money you pay to a marketing company for this type of help will be worth it considering the increased exposure they can help you get.

4. Not Providing Customers With Adequate Shipping Information

When people are ordering products from your website, they will generally want to know how long they have to wait to receive it and what it will cost. Failing to provide customers with this type of information will usually lead to a variety of problems and may even lead to them seeking out the products of a competitor. There are a variety of plugins out there that will allow you to put this information on your site with little effort. By providing customers with this information, you can make it easier for them to order your products.

Researching the various drop shipping companies out there is the only way to ensure the right one is hired.

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