Best selling products are out of stock with your supplier?
Here’s what you need to do...
In this episode of the eCommerce Lifestyle Podcast, Anton shares what to do when your best suppliers run out of stock of your best selling products.
As always, if you have any questions and suggestions, please feel free to leave a comment below. Don’t forget to share this with someone who needs to hear it.
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What's up everybody, Anton Kraly here from ecommercelifestyle.com, and welcome back to the podcast. If you are listening right now and you're in the process of building an e-commerce store or you're thinking about doing it, but looking for the best products to sell, ones where you can make $300 or more net profit per sale, I would highly encourage you to pause this episode, go to dropshipwebinar.com and register for a free training that I have coming up where I'm going to show you exactly how we build highly profitable semi-automated stores. Again, that is at dropshipwebinar.com. And I will link that up in this podcast description so you can go and check it out.
Now, with that being said, one of the things that I do when I'm hosting these live trainings is take Q and A. So I let people ask me anything and I do my best to answer all the questions. Now, some of the questions that came in on the last training I did were in regards to backorders and how to deal with them. So specifically, this is if you are dropshipping, meaning selling products that you don't see, you don't touch, and for the most part, there are ways around this, but for the most part, you don't have control over inventory for. So for example, you sell for, let's just say 10 different brands on your store. You're an authorized retailer to sell those products, and one of the brands has three best-selling products and you realize that those three products are now out of stock. What do you do, right? So this starts before the backorders even happen, before somebody even buys and you have to then reach out and tell them, "Oh, I'm sorry, this product is backordered until..." Enter date here. Right?So a few things that I want you to do sooner rather than later, whether you're already up and running and dropshipping, or you're just getting into this and starting your first dropshipping store by using exactly what I teach you at dropshipwebinar.com. Now, the first thing you want to do when you notice that inventory is either low or non-existent, meaning zero, for some of your best-selling products, the first thing you want to do is confirm the ETA for the next shipment with your supplier. So instead of just thinking, oh, I see there's only 10 units. It's in stock of my best-selling product. Hopefully they'll have more soon. They should have more soon. Instead of that, just reach out, send an email to your sales rep at that company and say, hi, sales rep name. I realized that there's only 10 units left of product ABC. This is one of our best sellers. I'm just curious how many more are coming in stock and when are they expected? Right? You want to know that? So what I'm about to take you through can make sense and so that you can take the right steps moving forward.
So the next thing that you'll want to do, if you are a little bit more advanced and you find yourself in a situation where you ask that question of your sales rep and they tell you, yeah, thanks for reaching out. We have 20 more units coming in and they are supposed to be in next week. And after that, we have a thousand more coming in, but that won't be for a month, right? Let's just say they tell you something like that. And you know, historically, that you'll easily be able to sell those 20 units that are coming in stock by yourself, as long as they're there, right. If the inventory is available or is coming in.
So what can you do then? Well, what I do and what I would encourage you to do again, if you're a little bit further along in your journey is reach back out to your sales rep or respond to the email and just say, thanks for letting me know. We fully expect to sell that inventory that's coming in stock. What can we do to basically have our names on it, right? What can we do to either pre-purchase it or to reserve it. Now, depending on... And the reason you want to do that by the way is so that your three competitors won't also be selling it and have inventory just disappear right away.
So a couple options are one, maybe you've been doing business with a supplier for a long time. Maybe you have a good relationship, which by the way, I teach you how to build these relationships inside of the dropship blueprint. That's what I show you all about and kind of dive deeper into at dropshipwebinar.com. So check that out. Definitely relationship building is key, but if you have those strong relationships already, then the supplier might just say, okay, you know what? You got it. These 20 units coming in stock have your name on them. We'll hold them for you. Maybe you're newer or maybe the supplier isn't as lenient, and maybe they say, you know what, if you want to reserve these 20 units, give us a 10% deposit or a 25% deposit, whatever it is, and then we'll hold them for you, and the only company that can sell them is yours. That means you can continue to sell while your competitors don't have inventory. So that's really a great way to kind of build a wall and like a line of defense where you can sell a lease products that are in stock while no one else can. So that is definitely an option.
Now, something else that you'll want to do, whether you're just starting or already scaling and huge, if you find yourself in a situation where one of your suppliers is sold out of a specific product and the ETA, right, when you ask them, maybe they say it's six weeks out, right? That's a while. Okay. Some people, meaning customers, are totally willing to wait six weeks, many aren't. So what I would advise you to do, if you find yourself in that situation and you can't reserve any inventory, is cut your paid ad spend for those specific products. So if you build a store, the way I teach you at dropship lifestyle, and let's just say, you have a thousand different products for sale on that site and there was one of them that's backordered for six weeks. Well, that one product, I would advise you to totally cut your ad spend for, until it gets closer to being back. So don't waste the money, sending people to a page that says this, product's not going to be in stock for six weeks. Okay, cut your ad spend specific to those products.
Now, something else you should do is on those specific product pages where the product is backordered is add a note right by the add to cart button where it says, this product is backordered. The ETA is whatever that real ETA is, so that if anybody does buy it, maybe they find you organically because you're not running paid ads to it, they're at least aware of when the thing will ship, and they're making that decision being informed, right? That's why I'm saying this. The what to do, if something is back-ordered starts before the sale is made, you're letting them know before they even click add to cart.
Now, in that message, that little note on product pages, there is something else I like to do as well, which is let the shopper know that this product is backordered until date. That's the ETA for shipment, but let them know that it's back-ordered everywhere. So the fastest they're going to get that thing if they want that specific product is to order it sooner rather than later, so that their order is guaranteed to ship first once stock comes back in. So I do recommend that as well.
Now, something else you could do, if these are high traffic pages on your site, let's just say it's called product 123 is backordered for six weeks and it gets a ton of traffic on your store, well, while it's backordered, in addition to everything else I just said, you should put a link that says, "If you're looking for a similar product that can ship within 24 hours, click here," and that link would go to a product page on your store that is the most similar product you offer that is in stock. So for example, I am at a standup desk right now. If this specific standup desk that I'm at was back-ordered for six weeks, on that product page, I would recommend the closest thing we had that was in stock and available to ship right away for those people that needed something sooner, rather than later.
Now, few other things I recommend just to wrap this episode up is that once the product is about to be back in stock, right? Let's just say you had that six week ETA for new products. When you get to be about a week out of it being back in and ready to ship, that's when you should turn your ads back on. That's when you can remove the message from your store and just let people buy again, normally, right? Start building up those orders that can all ship as soon as inventory is back. And again, we do that about a week before the ETA of products being back in stock.
And finally, throughout this whole process, while something is back-ordered, whoever buys, when they buy from your store, they should see that message on your product page before they buy, letting them know that ETA. But I would highly recommend that after they buy, after they pay, you have an email sent to them just saying, just to confirm, we received your order. We had this note on the product page, but I want to make sure you're aware that this product is expected to ship whatever the date is, right? Insert date here, just to make sure everybody's on the same page, to make sure your customers are happy. The people that want to wait know they're waiting and they're not having to follow up with you in two weeks to see what's on. And the people that need something sooner, you can just link them to the similar product page on your store. Get that sale quickly and to be able to capitalize on the existing traffic.
So hope this episode was helpful, guys. I know it might have been a little over the head of people that are just getting started, but either way, something good to prepare for if you ever do run into inventory issues. Everything is something you can figure out. Everything is an opportunity to make more money. Don't think, oh, a product's back-ordered, I'm not making money this month. There are tons of ways to turn that traffic into money. Whether that be, have people just be willing to wait or link them to something else you have that is comparable and you'll do just fine.
So again, if you want the full step-by-step of how we build stores, literally everything A to Z, how we find products where we net at least $300 per sale, how we get traffic for as little as $10 a day, then I would highly encourage you to go to dropshipwebinar.com for a free training. That will be linked up in this podcast description. Go there, check it out. And with that being said, I will see you on Monday for the next episode of the eCommerce Lifestyle Podcast. See you everybody.