Drop Shipping with Success Guide

LESSON 7: ORDER MANAGEMENT

Order Management

When you start receiving orders you will have 3 stages for each order.

Stage 1. Processing of the order
Stage 2. Shipment of the order
Stage 3. Post order

Processing of the Order


Once you get an order there are several things that you are going to want to do. First and foremost, you are going to want to check the order for potential fraud. No business owner wants to accept losses so some thief can fatten their pockets and enjoy the money you have worked hard for. There are a few rules when accepting payments, and they vary depending on the type of payment service you have (paypal, credit card merchant account, check, money order etc)

Fraud Prevention
This is a really important topic, that you will be glad you read, I am quite sure it will save you from being a victim of fraud at some point in your business. In todays day and age you generally will only accept Paypal, credit card via a merchant account or some other similar service. Unfortunately there is no shortage of scammers out there ready to take advantage of you especially if they think you aren't paying attention or don't know what you are doing. Once they get away with one successful order with you, they will try more and more, so you have to actively protect yourself. There are a few basic rules to follow when accepting payment that you should understand clearly, if you do, you will never take a loss due to fraud.

Paypal (if you follow below rules you should never lose a case)
Rule 1. Always get a signature delivery for orders over $750
Rule 2. Never allow the customer to change the shipping address after the order has been placed. If the customer insists on changing the shipping address, then cancel and refund the order, and let your customer place it again to the updated address.
Rule 3. Always check the sellers protection section on your payment to make sure you are eligible for sellers protection on each order (this will show directly on your order if you have the Multiverse Pro package)

Credit Card payments via merchant account
Rule 1. Always require a signature delivery for orders over $500
Rule 2. Never allow the customer to change the shipping address after the order has been placed. If the customer insists on changing the shipping address, then cancel and refund the order, and let your customer place it again to the updated address.
Rule 3. Never ship to an address that is different than your customers billing address unless you have some type of fraud protection to cover your transactions, there are companies like riskified and signifyd that charge a small fee per order, but if they approve the order than no matter what happens you will be covered. If you have fraud protection then you will be fine shipping to addresses other than your customers billing address. Your merchant account by themselves will not cover the order if it turns out to be fraud and you can't prove delivery to the billing address on the card.

Red Flags
Here are a few Red Flags you will want to watch out for and pay special close attention to make sure you are protected. The following flags do not necessarily mean your order is fraud, it just means to make sure you follow the rules above so you will be financially covered when you ship the order. The more of the below triggers your order has, the higher the chances are that your order is fraud.

High Dollar order (over $300) along with triggering other flag(s) from this section
High Dollar order with expedited shipping
Billing address and Shipping address in different States
Unable to get an answer when trying to contact your customer by phone, and they do not return your call
Customer wants to change shipping address immediately after placing the order
The customer contacts you and starts making unusual requests (if it sounds to good to be true it probably is)
Customer requests to send carrier to your location to pick up package (if customer uses own shipping account they can change the shipping address while in transit which would disqualify you from being covered by seller protection, even if you initially shipped the order to the correct address)

Always be dilligent, and pay closer attention to things that don't look right to you. But most importanly make sure to follow the rules above to make sure you are always protected even if the order does turn out to be fraud later.

Shipping the Order


Always remember to send your customer tracking number once you have it available so they can feel confident it is on the way. This will keep your customers happy and the marketplaces you sell on happy. The benefit is you will spend less time dealing with customer service answering questions like "Where's my order?"

Post Order


Don't we all wish that once you make the sale that is it, the order is over and there is nothing left to worry about. Unfortunately in the real world there is a lot more to it than that. This is why you need to make sure you have a way to track and manage your orders, in case later on you need to reference that order to solve a problem.

Examples of reasons why you would need order history

Customer needs warranty info
Customer needs to return item
Customer claims they didn't receive the item
Customer claims the item arrived damaged
Bookkeeping purposes
Track your customers buying habits
Fraud Management
Tax Reporting
And More...

When you receive an order you want to make sure you are able to store and save at minimum the following information. (our Multiverse Pro package includes this ability)

Customers billing address
Customers shipping address
Customers email address and phone number
a section to add/maintain custom order notes
item details of what customer purchased including SKU
payment method
payment transaction ID(s) (in case you need to look up a payment for a refund)
price paid
tax paid
shipping method
shipping cost

Returns
Unfortunately this is just a part of doing business, and if you are selling any kind of volume then returns will be inevitable. You want to make sure that your website or backend system has a way to manage your returns, so you are able to see at a glance any new returns that need to be processed, processed returns that need to be refunded, and refunded returns that you are awaiting credit on from your vendor. Being able to keep up with your returns will make for a better experience for your customers, and make it easier on you when it comes to keeping it organized so you don't double refund someone, or completely forget about a return where the customer gets ignored.


Conclusion

I hope you have enjoyed the guide, and I hope that it brings you success. If you took the time to read everything to this point I am sure you have learned something new that will be helpful to you. If you would like to discuss any of the areas in more detail, please do not hesitate to call us at 1-888-845-2467 and we will be happy to help.

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