Hopefully, if you follow a decent guide to dropshipping, it is unlikely that you are going to be dealing with problems all that often. However, your dropshipping business is still a business. Every so often, you will stumble across issues. Some of them simple to solve, others a little bit trickier.
On this page, we are going to walk you through some of the most common business problems, as well as give you a rough idea of how to solve problems related to your dropshipping business.
1. Legal Issues in Dropshipping
A lot of the legal business problems are going to be related to where you live and, thus, you will need to look into the laws for your country or state. We cannot tell you everything that you need to do here.
However, it is likely that your government will have some sort of online portal that will tell you how to get a business up and running. Remember that it is important that you do things legally. It is going to help to prevent a lot of business problems later on down the line.
1.1. Business Registration
In most places, you will need to legally register your business name. Your local government should provide information on how to do this. If you are not required to register your business, we suggest that you do it anyway. It makes dealing with problems a bit easier later on, simply because it helps to keep your business separate from your personal life.
1.2. Dropshipping Taxes
If you own a business, you will need to pay taxes on your profits. There is no getting around this. This is one of those issues that is a bit easier to solve if you run your business as a separate entity to your personal finances.
Working out how much tax you need to pay is simple. Remember that in some cases, you may also need to charge sales tax on the products, too.
1.3. Regulations on E-Commerce Platforms
Before you sign up for any website that allows you to sell products, it is important that you read through their terms and conditions. It is important that you understand what is and what isn't allowed on that platform.
One of the major business problems we have seen is that people get banned from the e-commerce platform they are using. They then complain extensively about it. After all, why wouldn't they? They would have lost their entire business they no doubt worked hard to build up overnight. This is a problem that really can be dealt with by reading the terms and conditions. If in doubt, don't sell the product!
1.4. Trademark and Infringement
If you are selling counterfeit goods and similar products, you will get caught. It doesn't matter how 'under the radar' you think you are operating, it is going to happen. A lot of businesses will be surprised at just how harsh the penalties can be too. The best bet here is to simply buy from reputable suppliers. Do not buy any product that is labeled as a 'top brand' unless you can be 100% sure the product is real.
2. Shipping Issues in Dropshipping
Since you are dropshipping, the only real thing you can do here is to contact the supplier and see what is happening. Do NOT send your customer to your supplier. This will cause a lot of issues. The key to successful dropshipping is to not let the customer know that you are dropshipping in the first place.
This is one of the major business problems that, once again, can be solved by working with a reputable supplier, to begin with. Do not just pick a random company.
Go through somewhere that works with quality suppliers (e.g. SaleYee) and shipping issues will be a thing of the past. If there are problems, then your best bet is to drop the supplier and use somebody else, assuming that the problems are common.
When you work with a supplier, they will likely have a list of their potential shipping times available to you. If you give this information to your customer when they make their purchase, they will be less likely to complain.
3. After-Sales Issues in Dropshipping
Have you a customer that is complaining? Not a good thing. However, how you deal with it could influence the success of your business. If you are known for poor customer service, then people will stop buying from you.
Again, when it comes to how to solve problems, working with a reputable supplier is a great start here. They will likely have processes in place that you can utilize to get products returned and replaced. If you work with a poor supplier then, well, you are probably going to need to be paying for those returns out of your own pocket.
4. Product Problems in Dropshipping
Again, most product problems in dropshipping can be solved by working with a quality supplier, to begin with. Let's run you through a few of the more common problems people talk about when they mention they are dealing with problems in product dropshipping.
4.1. Finance and Supply
Work with a reputable vendor, and supply shouldn't be a problem. If it is, then either search for a new reputable vendor that ships that product, or refund your customer. Explain to them that you cannot source the product at the moment, but they are free to order another similar product if they wish.
In dropshipping, finance shouldn't be a problem. You will take the money then place your order. However, it is always important to have a decent cash reserve available. This will help to protect you against refunds or other financial problems that appear.
4.2. Sales and Profits
Obviously, you want to make the maximum amount of profit on each product. Before you sell anything, make sure you do a few calculations to ensure the price you are selling at is one that you can make money on. A lot of people do not do this and make a loss.
You will also want to look into making savings wherever you possibly can. This means using sites like SaleYee to find your suppliers. It has free membership, offers brilliant prices, and regularly has sales on popular dropshipping items.
4.3. Quality
Never under any circumstance should you be selling a product unless you can vouch for the quality of it. Once again, this means dealing with a reputable supplier, or ordering a sample yourself to 'check' it over (some suppliers will offer samples of cheaper items)
If you receive consistent complaints about product quality, then you need to change suppliers.
5. Customer Service
Customer service is the lifeblood of any business. Poor customer service will result in poor sales. The safest option for you here is to:
1. Answer any messages from your customers quickly
2. Do not try to 'palm them off'
3. Answer questions and deal with complaints the best that you can
Do not send your customers to your suppliers. You will not be able to solve every issue your customer brings to you. However, do your best to solve as many of them as you can. If you are known for great customer service, your business will benefit.
Conclusion
Dealing with problems is 'part and parcel' of running a business. Things can get tricky at times. However, we promise you, for nearly every problem you will get through it. Start by working with a reputable supplier and look into the legalities of running your business. Everything else will fall in place after this.
