As with any other mail order business, shipping and duty related problems could sink a business. Thankfully, there are a number of established ways to effectively deal potential dropship disasters.
Here is a major fact of life when it comes to dropshipping: how effective you are with the actual shipping process can frequently determine success.
You cannot leave shipping exclusively to the warehouse shippers. You need to be very familiar with all steps in the process of shipping in case you need to take over certain duties on your own.
** How Important is Shipping to Dropship Sellers and Resellers? **
Shipping is probably the most important component to a successful dropship or reseller business next to the quality of the item itself.
When there are problems with the shipping,
customers will become contentious and unhappy with the service they have received.
Conversely, those businesses that provide a high quality of shipping service can feel comfortable they will be better poised to retain repeat customers.
Such customers might prove to be the perennial backbone to their business. This is why avoiding problems or dealing with them is so necessary.
** Common Shipping Problems **
The problems that can arise with shipping are varied. While most problems are rare and avoidable, common ones that rear their head include:
* Shipments become lost.
* Shipments are late.
* Items returned due to improper postage.
* Seizure and rejections of items by customs.
* Unforeseen costs associated with import duties.
** Import Duties Related Problems **
Import duties deserve their own special mention because they can raise the costs of the product.
Additionally, customs inspections of products for import duties can delay delivery.
Both of these aspects can harm a dropship business if the customer is not made aware of potential import duty issues.
A business can also be harmed if the dropshipper does not adjust his price accordingly.
** The Issue of Shipping and How to Make it Work For You and Not Against You **
One of the most common mistakes make by dropship sellers is that they do not pay particular close attention to shipping costs.
This is a huge mistake because shipping costs play a vital role in profitability and maintaining proper customer service.
Improperly charging too little for shipping can cut into profits.
Overcharging for shipping can lead to customers feeling cheated.
Neither of these components can help the long term success of the company. So, getting a proper handle on shipping costs is certainly recommended for all serious dropshipping businesses.
The impact of long shipping times and waits can truly damage a seller's reputation.
While not always a fair or accurate assessment, long waits lead the buyer doubting the item has actually been shipped. This may lead to the belief the seller may be a rip off. The buyer might assume the seller is flippant, disinterested, disorganized, unstable, or lacking in seriousness.
Do any of these monikers sound like anything that would help a seller's reputation? Hardly! That is why maintaining a good reputation with shipping is vital to a company's success.
The Costs of Shipping and Duties and How to Stay Profitable While Maintaining a Good Reputation
There are a lot of negatives that can derive from the customer having to incur unexpected duties.
That is why it is so very necessary that the seller take the required steps to prevent such a problem from arising.
Really, anything that arises that casts your business in a negative light needs to be addressed and avoided.
It casts your company in a bad light from a customer service and organization perspective. As such, avoiding anything negative is a must.
The answer to this can vary depending upon the items that you sell and the willingness of the customer to pay for high shipping.
In general, however, high shipping costs can cut into your profits if you are forced to incur some of the costs. In many cases, you will need to incur some costs associate with shipping
** Ways to Deal with the Problems **
* Knowledge. *
The best way to combat issues related to duties, taxes, and excess shipping would be to make yourself aware of them and learn the common ways to deal with them.
That could mean raising prices or cutting overhead expenses to deal with the problem. Or, it could involve using a reliable shipping calculator to provide you with all the needed details on how to effectively itemize your costs.
* Use a Courier Account. *
It can open your ability to deal with businesses (couriers) that only work with those that have specific accounts.
In many instances, opening such accounts allows you to deal with quality companies known for their solid reputation in the field.
* Employ Disclaimers. *
Some may scoff at the notion of providing a disclaimer but a disclaimer serves a vital purpose.
Mainly it warns a customer of a potential problem in advance.
As a result, if such a problem occurs it will not be as jarring to the customer that reduces the potential for heated complaints, poor reviews, and a lessening of one's reputation.
* Steps to Take Now *
Familiarize yourself with all duties, taxes, shipping costs, so you know what they are and what they will cost. From this, you can then take the proper steps on how to deal with them.
