These exceptional drop shipping tips will show you that you can minimize backorders in your drop shipping business. Drop shipping is a business style adopted by many online entrepreneurs. It seems the bandwagons are having none of the reservations about its cons and flaws. That said, there are many individuals looking to adopt the concept every day.
Although, a key problem is dealing with backorders, and minimizing them can be pivotal on your business. Leaving inventory duties for your supplier can be less taxing but could also be the perfect recipe for so many backorders. Unfortunately, there’s no surefire way to guarantee that an item will remain in stock at the time purchase.
This makes it a major reason and a worthy one to back off the drop shipping business. While the risks are high, playing your part of the bargain can also help in reducing losses. Here’s a read on handy drop shipping tips to steer off backorders in your drop shipping business.
1. Monitor Quantities on Hand (QOH)
One of the best drop shipping tips you can do in curbing backorders is to keep a close watch on available quantities of a product. Doba is a nifty tool to help monitor supplier inventories. So, it’s worth erring on the side of caution to check for product quantity trends before listing them on your store.
Hence, if using an online auction, ensure to have many units of the items in stock. But, you are pretty confident after monitoring quantity trends. You also feel a product wouldn’t vanish into thin air anytime soon. Then, you may well take the leap and enlist an item with a low stock quantity.
2. Run Shorter Auctions
Running shorter auctions can help too. A faster auction means you don’t have to worry about backorders. This is true since the time lag for shipping to your customer will be expectedly short. Essentially, you won’t have to worry with a shorter auction. Listings usually ramp up more bids and reviews in the last 24 hours.
3. Cancel the Auction if the QOH Reaches Zero
There are surely many drop shipping tips, and this is another one to consider. Items can have a decent QOH when listing them. But, there’s no assurance that the quantities will remain at a decent number over time. This is especially true if you run a longer duration auction. As you monitor your QOH’s by the day, you surely know what to do if your product quantity careens down to zero. Simply end its auction immediately.
4. Drop Ship an Item to Yourself
Of many drop shipping tips, another trick is to “pad” your inventory by drop shipping an item to yourself. This makes it incredibly impossible to run out of an item. Being, you’d have an alternative to fall back on. An idea is to consider what items to make your regular sellers. With a backup product, you can easily end other auctions of the particular product to control any rise in backorders.
Although not exhaustive, the drop shipping tips above can be all that you need in reducing backorders. Most of all, you enjoy taking the plunge into drop shipping. Overall, it is more alluring than other online business models for your niche business.