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Is Dropshipping bad for chargebacks?

Discussion in 'Black Hat SEO' started by samiejg, Jun 2, 2017.

  1. samiejg

    samiejg Senior Member

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    I had someone recently tell me that dropshipping is the worst to do because of chargebacks. But why is that compared to other options?
     
  2. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Because you don't control the when the product is sent nor when it is returned, if it's returned at all.
     
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  3. amazzy

    amazzy Registered Member

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    Its only bad if you take 3 weeks to ship which is why alibaba drop shipping is tough. Most people are used to getting stuff a lot quicker. The key is customer expectation management and don't act like you're shipping from the US/some other country when you're not. You might get more orders faking it but a lot of the additional orders will be from people who are trying to get their stuff faster thinking they're ordering from the us, etc, who will then chargeback when it ends up taking forever
     
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  4. samiejg

    samiejg Senior Member

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    Ok I gotcha. So it sounds like the only issue is how long it takes to actually sell the product... and perhaps it's a good idea try to find some place locally in the US to dropship from (aka to work with) to avoid that happening? Either way, are chargebacks going to be inevitable? I'm just thinking even if I made and sold my own products, or dropshipped with a really fast turnaround, what's to stop people from buying an expensive product from me, waiting until I send it out, and then doing a chargeback? (basically stealing the product from me)

     
  5. Servicesman

    Servicesman Junior Member

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    You're right.I got the same problemed
     
  6. Lunaaa

    Lunaaa Elite Member

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    It's not bad at all, especially with smaller priced products. Make sure to ship with epacket.

    Ive shipped products that don't work well and only 1 charge back out of 200. I've accidently shipped the wrong product before to like 300-400 people accidentally, 1 chargeback, some complaints.

    Its not a huge issue
     
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  7. samiejg

    samiejg Senior Member

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    That's interesting. So I guess maybe that's another big factor too, if it's a higher priced item. I could see how someone making a bigger purchase might be more likely to do a chargeback, especially if they have to wait a long time. Otherwise they are probably not as excited about lower priced items, thus not as important to worry about, and get's forgotten.
     
  8. Lunaaa

    Lunaaa Elite Member

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    People will still be really excited about small priced products, but it's probably not worth it to them to go to the bank and do a chargeback. If it's really expensive, I can imagine people googling how to get their money back. I haven't sold high ticket items but that's what I think would happen
     
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  9. samiejg

    samiejg Senior Member

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    Thank you so much for the great information :) I think I'm going to stick to small priced items, or maybe unless I can guarantee a quick delivery date. But it's still seems really scary though.. I keep thinking about how I would combat against scammers... like if I sold a $600 drone or something, and then gave them a really fast delivery date, but they are scammers so they chargeback. From what I remember, it seems like people can just call up their credit card company and they'll refund it with no questions asked. Or maybe I don't understand how things work now adays.
     
  10. ezrix

    ezrix Junior Member

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    Some advice..make sure you let the customer know that the shipment will take 14-30 days.. you can add the info on the product description or on the shipping selection page.. offer free shipping will also help to reduce chargeback for late shipment..
     
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  11. samiejg

    samiejg Senior Member

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    But what about scammers that do chargebacks? Or is that even a thing anymore? Just heard so many horror stories. Like a scammer that buys an expensive product, waits for it to be shipped, then chargebacks because they want the free product.