Skip to main content

Drop Ship Home Based Business Tips: Minimizing Backorders

When drop shipping, you lose some control over inventory levels, leaving it in the hands of your supplier. This increases the potential 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 is a simple fact of drop shipping. It is a trade off, but one that we think is well worth the benefits. Once you've learned how to reduce the possibility of a backorder the benefits of drop shipping become even greater. Here are some top tips for minimizing backorders with your drop ship business.

Monitor Quantities on Hand (QOH)

The most obvious thing you can do to protect yourself from backorders is to closely monitor quantities. Doba provides a data export tool that can help you monitor supplier inventories. If you are able, monitor quantity trends before listing an item in an auction.

If selling 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 monitored quantities before hand and notice a product isn't "flying off the shelves", you may be comfortable selling items that have a lower number of items in stock.

Run Shorter Auctions

I once listed an item on eBay® that had only one item left in stock. Even though I knew the item to be a slow moving item, listing something with a quantity of just one had me a little worried.

As such, I decided to run a three day auction. The faster the auction got over with, the sooner I could drop ship the item to my customer, and the less I would have to worry about it. I wasn't concerned about losing potential business from having a shorter auction because listings typically get the most views and bids in the last 24 hours anyway.

Cancel the Auction if the QOH Reaches Zero

Along with monitoring QOH's before listing an item, you'll want to continue monitoring quantities throughout the auction. If you notice quantities dropping each day, you'll want to keep an even closer eye on it.

You can't drop ship an item that isn't there. If the quantity ever reaches zero, go into your auction right away and end it early.

Drop Ship an Item to Yourself to "Pad" your Inventory

Shipping a few items to yourself to pad your inventory is perhaps the most effective fail-safe to prevent backorders from having a negative impact. This is particularly advisable 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 typically have several auctions with the same item running simultaneously.

If an item goes out of stock, you'll always have the one or two items on hand that you can ship out and still have time to go through and end all your other auctions early until the item comes back into stock.


Comments

Popular posts from this blog

2 Tier Affiliate Programs Explained

How will refering new affiliates to an affiliate program make me money in the future? Thats where a 2 tier affiliate program works like magic!  Affiliates are getting cleverer by the day. So these days, affiliates know the difference between the different types of traffic they can get paid for. There are a lot of definitions though – CPM, CPC, CPA, CPL, CPD and many more.  CPM is impressions, when the publisher (the website owner) gets paid every time a banner is shown.  CPC is clicks, where the publisher (or email marketer and other marketers) gets paid every time a banner or text link is clicked upon.  The other ways of getting paid are grouped together under the term performance marketing – and this is where the term affiliate is most commonly used as well.  An affiliate is a marketer who sends visitors to another site using a variety of methods (such as placing banners or text links on their own site, buying sponsored listings on search engines, email marketing and many

10 Ways to Make Money with Bitcoin [2020]

Bitcoin is the best performing asset class of the last decade but it is misunderstood making lots of people susceptible to scams. Find out how people are really making money with bitcoin. Bitcoin is just over 10 years old now and it has taken the world by storm. It has created many overnight millionaires through its various bull runs, the highest value reached at the end of 2017 when it peaked just under $20,000. Due to its complex nature and high profits, it attracts all sorts of people, some who take advantage of other people’s lack of knowledge. Many people have fallen prey to bitcoin scams and ponzi schemes. Therefore, it is important to know what bitcoin is and how you can actually make money from bitcoin. What is bitcoin? Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without

8 Evergreen Tips to Create a Blog That Generates Passive Income?

Anyone with a blog can make money online. If you have a blog and you want it to generate some extra income for your home, I’m going to give you some tips in this post.   I understand some people are blogging full time. That means their blogging activities generate enough income to keep them going. Maybe you are wondering if that’s possible. Yes it is. I have been blogging full time for over 5 years now. Blogging is a lucrative income-generating business and many are beginning to get into it actively. But you do not need to be actively involved to make something reasonable from your blog. It can actually be an awesome source of passive income if you’re following simple steps that work. How to make passive income from your blog One of the most beautiful things about blogging is that you can blog just about anything. If you are a professional in any industry, all you need is basic knowledge to setup your blog and start writing about the things you already do: Are you a lawyer, pilot, nurs