Drop Ship Suggestions: Minimizing Backorders
June 29th, 2012 | 
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When drop shipping, you lose some control more than inventory levels, leaving it in the hands of your supplier. This increases the prospective that a backorder scenario can occur with no your expertise.
The truth is, there is no technique to guarantee that an item will be in stock. This can be a very simple reality of drop shipping. It's a trade off, but one that we think is nicely worth the advantages. The moment you've learned the best way to lower the possibility of a backorder the rewards of drop shipping come to be even higher. Here are some prime recommendations for minimizing backorders along with your drop ship business.
Monitor Quantities on Hand (QOH)
By far the most apparent point you are able to do to guard oneself from backorders is usually to closely monitor quantities. Doba supplies a data export tool that will enable you to monitor supplier inventories. In case you are able, monitor quantity trends before listing an item in an auction.
If selling items at an online auction, you are going to typically want to only list items that have a large number of items in stock. Nevertheless, in case you have monitored quantities before hand and notice an item is not "flying off the shelves", you might be comfortable promoting items that have a lower quantity of items in stock.
Run Shorter Auctions
I the moment listed an item on eBay that had only one item left in stock. Although I knew the item to be a slow moving item, listing anything having a quantity of just one particular had me a little bit 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 also the much less I would need to worry about it. I wasn't concerned about losing prospective organization from having a shorter auction since listings commonly get by far the most views and bids inside the final 24 hours anyway.
Cancel the Auction if the QOH Reaches Zero
Together with monitoring QOH's just before listing an item, you are going to would like to continue monitoring quantities all through the auction. Should you notice quantities dropping each day, you are going to choose to preserve an even closer eye on it.
You can not drop ship an item that isn't there. If the quantity ever reaches zero, go into your auction right away and finish it early.
Drop Ship an Item to Your self to "Pad" your Inventory
Shipping some items to oneself to pad your inventory is possibly by far the most efficient fail-safe to stop backorders from getting a negative impact. This really is especially advisable for items that happen to be common sellers for you personally.
Usually, you will only require to help keep a single or two items inside your personal inventory, even when you ordinarily have quite a few auctions together with the very same item operating simultaneously.
If an item goes out of stock, you'll usually have the one particular or two items on hand that you could ship out and still have time to go by way of and end all of your other auctions early until the item comes back into stock.
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