Common Problems Related to the Drop Shipping Business
Drop shipping is the supply chain management structure in which the manufacturers help with shipping the products directly to their retail customers. In this work, the retailer easily makes his profit by adding up to the markup price to the wholesale amount. In this particular business concept, the retailer has no burden of the inventory and shipping of merchandise. In simply eliminates the involvement of unnecessary hand in the merchandise procedure as the item is directly transferred to the customers by the drop shipper.
The drop shipper can be the Dropship Agent (ตัวแทน Dropship, which is the term in Thai) or drop ship wholesalers. They make use of the two methods while doing their business.
Whenever the drop shipping companies send the products without doing the advertisement of their name, it is referred to as Blind Shopping. The shipping company makes no attempt in the promotion of their name or using the company logo.
Private Label Drop Shipping
Now, when the drop shipping company attaches some of the notices to the packages, which allow the clients to customize, and make an addition to the business values of the successful orders, it is referred to as the Private Label Drop shipping.
Major problems faced by the Drop shipping business
There are three common issues faced by almost all the business.
Drop Shipping Agents
It is always advisable to stir the search engine properly to get to know about the reliable service providers. Else, the middlemen or agents getting you to the real drop shippers would charge you securing the amount in the name of the fee.
Often the deliveries are provided after a long wait or in damaged conditions. So, it is always advisable to read about the distribution system of the company. People often look for the company which could provide the tracking facility of the product.
Customer Satisfaction Problems
It is quite usual that the customer might be dissatisfied with the product. This would result in returning of the product. Hence, the return policy of the drop shipping company should always be checked before placing the orders for the adverse case.
There are many such Dealer (ตัวแทนจำหน่าย, term in Thai) available in the market, which helps in improving and promoting the business to a wider scale. However, one must consider different aspects to efficiently improve their success rate.