How To Handle Backorders With Sound Sourcing Strategies
Backorders frighten even the most seasoned retailers. When the customer pays for a product and you are not able to deliver it on time, it leaves you with a sense of failure apart from the fact that it could anger the customer. Angry customers are bad news; they spread word of your “unreliability” and thereby reduce your credibility. To prevent such a situation, you need to deal with backorders carefully. Here are a few tips on how to handle backorders.
Keep Alternatives Ready
Always maintain good relations with more than one supplier. If one of them fails to deliver, you can contact another one and request them to fulfil the order. Sometimes, you may need to concede certain points in order to get a quick replacement. For example, you may need to pay more to have another supplier rush the product to the customer.
A lot of e-tailers, particularly those who dropship, purchase the product from a retail store and ship it to the customer as a last resort. Note that this sort of sale will not earn you a profit, and sometimes, you might even have to pay from your own pocket in order to make up the difference between your price and retail price of the product. However, if this means that you are able to keep the customer happy, go for it.
You cannot keep up this kind of an arrangement for too long, though. If your supplier is frequently churning out backorders, the only alternative would be to find a more reliable supplier. Thanks to directories such as esources.co.uk, you now have plenty of alternatives. Backorders, therefore, should not be a matter of much concern.
ESources.co.uk features reliable suppliers who have been in business for years. They are experienced wholesalers, distributors and exporters who know the importance of avoiding backorders.
Overorder
While the main principle behind dropshipping is to never hold inventory, you should overorder products just to be on the safe side. If you are expecting more sales on a particular day, or you know that the suppliers are likely to run out of stock, order a few extra products and store them. If the worst happens, you can still fulfil customers’ orders. You can always sell a few extra products even when you order a larger number than required.
Communicate with Suppliers
Peak seasons are a great time to make profit but they also lead to stock shortages. Before the peak season begins, contact your supplier and let them know that you expect to be selling more products. Also, ask them if they will hold stocks for you, in order to prevent backorders. If you are a regular buyer, the supplier will happily oblige.
If the supplier is unable to guarantee 100% order fulfilment, you should take the products off your inventory, to reduce the likelihood of backorders.
Enlist the Cooperation of Customers
Many customers would forgive an odd late delivery if you are otherwise consistent in your dealings with them. You should let your customer know about the delay as soon as you get to hear about it. Also, if your supplier can guarantee order fulfilment, even if late, you can usually persuade the customer to overlook a one-off crisis. Make sure your supplier does not turn backorders into a habit, though!