Drop Ship Tips: Minimizing Backorders
by Stuart Lisonbee
When drop shipping, you shed some control over inventory ranges, leaving it in the hands of your supplier. This increases the possible that a backorder situation can occur without your knowledge.
The truth is, there is no way to guarantee that an item will be in stock. This can be a simple fact of drop shipping. It's a trade off, but one that we presume is well worth the benefits. When you have learned how to reduce the chance for a backorder the benefits of drop shipping turn into even greater. Here are some top tips pertaining to minimizing backorders with your drop ship company.
Monitor Quantities on Hand (QOH)
The obvious thing you can do to protect yourself via backorders is to closely monitor amounts. Doba provides a data export device that can help you monitor provider inventories. If you are able, monitor quantity trends before listing an item in an auction.
If promoting items at an online auction, you'll typically want to only list items that have a large number of items in stock. However, if you have checked quantities before hand and discover a product isn't "flying off the shelves", you might be comfortable selling items that possess a lower number of items in investment.
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Run Shorter Auctions
I remember when i listed an item on eBay which in fact had only one item left available. Even though I knew them to be a slow moving item, listing something with a level of just one had me a tiny worried.
As such, I decided to operate a three day auction. The actual faster the auction received over with, the sooner I could dropshipping the item to my customer, and the less I would worry about it. I wasn't interested in losing potential business via having a shorter auction because listings typically get the most opinions and bids in the last One day anyway.
Cancel the Public sale if the QOH Reaches Zero
As well as monitoring QOH's before listing an item, you'll want to continue monitoring amounts throughout the auction. If you notice amounts dropping each day, you'll want to keep an even closer eye onto it.
You can't drop ship an item that is not there. If the quantity ever before reaches zero, go into your auction right away and stop it early.
Drop Ship a product to Yourself to "Pad" your Supply
Shipping a few items to yourself to pad your inventory is perhaps the most effective fail-safe to prevent backorders from developing a negative impact. This is particularly highly recommended for items that are regular sellers for you.
Usually, you'll only need to keep one or two items in your personal inventory, even if you routinely have several auctions with the same item running simultaneously.
If an item goes out of stock, you'll always have the one or 2 items on hand that you can dispatch out and still have time to undergo and end all your various other auctions early until the item comes back into stock.