Monday, December 05, 2005

Those Backorder Situations - My 1000.00 Dropship Sale

Yep, I recently made a 1000.00 dropship sale online, well not a full grand, more like $976.00 but let's just call it the grand backorder sale. I'm going to use this situation to give everyone an example of how to handle backorder situations in the drop ship business.

-I recently sold two big items in the alternative energy market, now I can't tell you what exactly because too many people will just read this post and automatically curtail my long research efforts in the past months and immediately start selling those exact products. So, I sold two of them, buyer sends me a $976 e-check via Paypal and says, "Wow, those are some good prices, please get me my %%%%%-%%%%%% as soon as possible."

Up to that point, I was giving her great customer service during the auction on Ebay, giving her information on her products, energy output readings, things of that nature. Well, as in dropship business goes, you then have to forward the order to your dropship supplier.

-My Dropship Supplier

(which I found off the incredible Drop Ship Directory created by Chris Malta and Worldwide Brands). , then tells me that he just ran out of that product 24 hours ago and then he tells me that he has NO IDEA when the next batch will come in. My product market on my certain webswite is in very, very high demand right now, and the inventory turnover ratio is ridiculous, so it's hard to measure sales vs. dropship supplier inventory on any given day.

So, what do I do?? Freak out?, get mad?, nope, if you want to succeed in dropshipping you have to learn that backorder situations occur, pretty frequently. So get over it. I then emailed my customer, explained the situation telling her that backorder situations were frequent in the alternative energy market and that her order could arrive anywhere between 2-12 weeks. (Big, Big window I know..). I told her that I would give her an update email every two weeks if she wished, but I could not guarantee a delivery date for her. Then, I gave her the option you ALWAYS have to give your customers in the dropship ecommerce business, A FULL REFUND NO QUESTIONS ASKED. Always offer this if you are delaying your customer's happiness in any way, but however, don't ever offer a freebie or gift portraying that the backorder is your fault, because it's not.

Conclusion: Backorders happen in the drop-ship business, explain your customer the situation, tell them the truth, the full truth. I had no idea when I could get her her product, and I told her so. Then tell her, I will update you every two weeks if you want to stay on the backorder list, or you can get a Full-Refund, always say you can get a full refund, but don't ever, ever offer something like free shipping, or discounts because of the backorder, because that' s not good business and will hurt you in the long run.

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Best Regards,
My Experiences with the Dropshipping Products Business


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9:26 PM  

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