It's going to happen. If you're selling
on the Internet, there are going to be backorders.
It's going to happen. If you're in
business, selling on the Internet or anywhere else, there
are going to be Backorders.
When you use Drop Shippers, there is
always the possibility that your Drop Ship Supplier will
run out of something that you have for sale on your Internet
Store or Auction. That's a "Backorder" situation. You sell
the product, and suddenly find out that your Drop Ship Supplier
can't deliver it for you because they are out of them temporarily.
When you use Bulk Wholesalers, the same
thing can happen! Yes, even though you have your own Product
Inventory stored at your house, your customer may end up
backordered. How?
Let's say you're selling Blue Widgets,
Green Widgets and Purple Widgets on eBay. You're getting a
bit low on the number of Widgets you have in stock, so you've
placed an order for 100 more of each color Widget with your
Bulk Wholesaler. It's due to be delivered tomorrow.
You have 25 Purple Widgets left, and
suddenly ABC Evening News runs a story on what a wonderful
product Purple Widgets are. Suddenly everyone has to have one,
and in one night, your Auctions sell 75 Purple Widgets.
'Well, no problem', you think. "I have
another 100 Purple Widgets being delivered tomorrow".
So, you collect payment for all 75 Purple
Widgets, and plan on shipping them out tomorrow when your
bulk order shows up.
The next day, the order from your Bulk
Wholesaler shows up. There are 100 Blue Widgets in the box,
and 100 Green Widgets as well. There are no Purple
Widgets to be found.
On the Packing Slip that came with your
bulk order, you see that the 100 Purple Widgets you ordered
have been backordered by your Supplier.
So, you have only 25 Purple Widgets left
to fill 75 orders. Fifty of your customers will be backordered.
If it sounds far-fetched, it isn't. That's
part of business, folks. Products get backordered. It happens.
The important thing about this situation is that you deal
with it well.
There will be other things besides backorders
along the way that will cause problems in supplying or dealing
with your customers. Again, that's just the way business goes.
Sometimes, you end up with a customer that just
doesn't understand that, and that's a "Problem Customer"
As I write this, I have just finished dealing
with a backorder situation, and steam is still rising from my
ears. By now, I should be used to it. I shouldn't let the little
things get to me. It's not the Supplier that I'm upset with. It's
the customer. Let's start from the beginning.
Recently, I handled an order for a Conair
Digital Blood Pressure Monitor. As usual, I emailed the order
off to the Conair distributor with several others.
Later that day, I received a phone call from
the Conair Supplier. The BP monitor was out of stock, but was
expected within 10 days. Did I want to place the product on
backorder, or cancel the order altogether? Also as usual, I
told the Supplier I would get back in touch with them after
checking with the customer.
Since the customer was located in Orlando,
it was a local call. I called his house. I identified myself,
told him that I had received his order, and that I was very sorry,
but the product had just run out of stock, and was expected to be
available again in 10 days. I told him I had not yet charged his
credit card, and would cancel the order if he preferred to go
somewhere else.
You would have thought I had just told him
that I was planning to strangle his cat. He got upset, and I
could just hear his face turning purple. Small wonder the man
needed a blood pressure monitor. I'll spare you the details.
It came down to this: he thought that I should give him free
shipping for his inconvenience. I stuck to my guns, and politely
told him that I was not willing to do that. He had placed the order
only hours before, and I had not yet charged him. He finally agreed
to wait for the product, but said he would be watching the calendar.
I knew I had a "problem customer" on my hands.
(Imagine the "Twilight Zone" theme music playing at this point).
A week later, when I got another call from the
Conair Supplier saying that the factory shipment had been delayed
further, I braced for impact, and contacted the customer. I'll spare
you the details of that exchange as well. There may be small children
present. I managed to keep calm, although I was boiling at this point.
Again I offered to cancel the order, and refund his credit card (which
I had charged, since he had okayed the delay). He refused, saying
that he had waited this long; he might as well wait it out.
The BP Monitor showed up at the distributor
after the expected delay. They were considerate enough to Drop
Ship it to the customer by FedEx 2 Day Air at no extra charge.
(My Conair distributor is great!). It would arrive at the customer's
house shortly. I was quite happy. Then I checked my email. Another
blistering tirade from our over-pressured friend. I wrote back, calmly
and politely, and told him he could expect his order very soon, and
I was sorry that he was dissatisfied. I haven't heard back from him,
and probably won't.
Now, this may sound like I'm making it up for
effect, but I swear it's true: I handled another order for the exact
same product on the same day, and the woman who placed the order
experienced the same delay. A couple of hours after receiving the
nasty-gram from my friend above, I got an email from this woman.
She thanked me for my persistence in following up her backorder,
and told me she would definitely be back to shop with the site again.
That's what makes it worth being in business in the first place! One
happy email can really make your day. :o)
Here are the things that I've learned about order
problems during my time in this business:
Internet customers are for the most part "instant
gratification" junkies. They want it NOW.
Because of this, backorder, discontinued item and
other product problem situations must be handled immediately. Don't
wait even a day. Call the customer, or email them. (A call is usually
appreciated more than an email, but you have to watch your phone bill).
If you think a product might be questionable as far
as stock status with your Drop Shipper, or if you stock them yourself
but are running out, check with your Supplier before charging the
customer's card. You get a feel for which items are stocked less than
others after a while. You can always refund the charge, but it's better
if you can tell them you have not charged them yet.
Always offer to cancel. Chances are they won't,
because then they have to go search for the product again and hope
they don't run into the same problem somewhere else, but the offer to
cancel must be there. It tells them that you are not desperate for
the sale, and gives you the advantage in the conversation.
Be nice. Even if you are grinding your teeth.
You can't afford to lose your grip. You never know when one episode
of lost temper will come back to bite you.
Follow up during the problem period. Send at
least one email saying that you are monitoring the situation, and
are sorry for the delay. That is a great tactic for defusing an
impatient person; at least they know you are thinking about them.
If there is an additional delay, offer to cancel
again. They may actually take you up on it if it's a long delay, but
you don't lose anything if the Supplier has not yet shipped.
When you know that the product has shipped, inform
the customer. They appreciate that, and again, realize that you are
at least thinking about them.
Most people understand order problems, and will
give you no trouble. In fact, most are very appreciative if you
contact them right away. Sometimes, you get the problem customers.
Deal with them politely, and never lose your temper. Be the
bigger person.
I always check my return emails to these people
twice. There are times when I've let some temper slip in to my
writing, and I'm sure to remove it before clicking the send button.
It only ends up helping you in the long run!