Getting into Dropshipping is a perilous method of making money online. It is strewn with pitfalls and con-artists, and yet many people are unaware of the problems simply because of the amount of middlemen out there trying to make money off people by convincing them to use dropshipping.
Of all the problems facing the would-be dropshipper on ebay one of the biggest nightmares is that of the dreaded Out Of Stock email from their supplier… Think about it… You manage to sell an item on eBay and actually make a little profit. But when you contact your dropship supplier to complete the order, the company tells you there is no way they can fulfill their promise to you — they are out of stock! They have let you down, left you in a world of trouble and given you two difficult options.
1) Source the item from another supplier.
This solves the issue of your customer not getting what they paid for, but has a number of issues.
- It takes time to source suppliers.
- The item may not be available via other suppliers.
- It may cost more than you were paid to buy the item from elsewhere (leaving you with a net LOSS on the sale).
Any of which will leave you making less money and annoying your customer who has no idea about the issue and doesn’t care, wanting to only get their hands on the item they paid for and that your dropshipper has let you down over.
OR, YOU CAN…
2) Offer a refund
Again this is a long way from the ideal. You have to explain things as best you can to the customer and hope that they are understanding and do not blame you. Rather risky and it means that you are missing out on a sale. You’re also at high-risk to recieve a negative feedback on eBay from your buyer!!
As you can see a dropshipping supplier being out of stock of an item can have a real negative impact upon your eBay business. It is an area that you can have absolutely no control over; putting your eBay sales fulfillment in the hands of others who are unlikely to be bothered by your problems.
Plus, I have only scratched the surface here. Take another look at the two big issues to see just what sort of headache your dropship supplier being out of stock of an item can cause after you have ‘sold it’ to a paying customer.
#1 – Loss of reputation.
Even if it is just a delay rather than a cancellation the customer is not going to be impressed by your performance. They will tell others and your companies name will get around as one that is unreliable. They will most likely leave you bad feedback on eBay as well.
#2 – Loss of money.
Any time you have to refund due to an item being out of stock you are going to be out of pocket. Not only will you be down the profits on that sale but there is a good chance that you will also have to pay out on fees to eBay. You final value fees will not be refunded because you sold something that you were not able to complete.
When you look at it like that it is easy to see why items being out of stock can be a huge nightmare an eBay trying to sell using dropshipping can face.
The bottom line!?
Ignore the hype, dropshipping has a huge amount of potential problems that can see you losing money rather than gaining it.