Congratulations on starting your venture in dropshipping business. But before opening your new online store, have you thought about how to survive in this industry? If not, here are some pointers you should consider.
Dropshipping has become one of the fastest-growing industries in eCommerce. The availability and accessibility of online platforms, the internet, and gadgets contributed to the advancement of the popularity of this business area. Moreover, the success stories of many dropshippers also encouraged other aspiring entrepreneurs to jump on this business.
While dropshipping is a good way to start an online business, you must take note that it has some risks. Many customers are still skeptical of dropshipping stores since it is unfamiliar to them. Likewise, there are stories of customers narrating their awful experience from dropshippers from purchasing poor quality items, delayed delivery, and poor customer service. Given these issues how can you stand out in this industry and help your store grow?
The answer is simple: boost your store’s credibility and trustworthiness. Below are pieces of advice on how you can build confidence and trust in your potential customers.
No. 1: Obtain a Business License
There is no law restricting dropshipping stores from selling without a business license. However, it is still important to get a business license despite the lack of regulations.
Obtaining a business license is a basic requirement when starting a store. You can learn more from online sources that strengthen the legitimacy of your store. Furthermore, it provides a sense of security to the customers knowing they are dealing with a legal seller and store. Also, having a license gives your store an edge in case legal issues happen.
No. 2: Establish a Refund Policy
Refund policies are not essentially required. But having one helps creates security and builds confidence from customers. Of course, you could not state ‘no refunds’ on your store’s website. If you do, no doubt, your chances of gaining customers are close to none.
Refund policies provide a preview to the customers on what to expect from your store if the product they ordered does not meet their expectations or defective. Likewise, it sets a common ground between you and the customer. Hence, it also secures your right as a seller from a potentially ill-meaning customer.
No. 3: Create Terms and Conditions
Formulating a comprehensive legal agreement, such as terms and conditions is an essential element in eCommerce. It prevents the risk of fraud and scams. Additionally, it protects customers from identity theft.
Take note that you have to collect the customer’s personal information to conduct a transaction online. A customer entrusts you not to disclose personal details to other parties. If it happens, you can be sued and your store will lose its credibility.
Creating a set of terms and conditions protects the identity of the customers and secures the transaction. It reduces legal risk and limits legal liabilities. It also helps customers build trust and confidence in your store.
No. 4: Disclaimers
Disclaimers are essential to help customers get a better understanding of your store and products. Also, it is an effective preventive measure against legal disputes that could arise in the future.