We reveal what the “gurus” don’t tell you about dropshipping with Aliexpress…
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So yes… it’s lots of fun to talk about the fancy things we’ve bought with dropshipping money (sports cars, fancy vacations) but it’s a lot less fun to talk about things like…
* Getting banned on PayPal
* And refunds.
Luckily, all of these things have simple solutions and can be avoided - as long as you know what to do in-advance. Here is how to overcome these obstacles when creating your Aliexpress dropshipping store.
#1: How to Not Get Banned on PayPal
Everyone has heard the horror stories of people having their PayPal accounts banned and losing tens of thousands of dollars. It’s key when dropshipping to avoid having your PayPal account being banned.
A lot of people say that PayPal “doesn’t like dropshipping” - but this simply isn’t true. What PayPal doesn’t like is it’s customers being lied to or tricked to.
And we regularly see new dropshippers being shady when it comes to one thing in particular… the long shipping times.
New dropshippers assume that they’ll need to not be honest when it comes to the shipping times to make sales. But this isn’t true. Long shipping times don’t affect conversion rates as much as you’d think - what they do affect is how much customer support you need to provide.
It is very important that you are upfront with customers and set their expectations clearly in the beginning, because this is the biggest reason for PayPal disputes - and it is PayPal disputes that will get your account frozen and banned.
Here is what we recommend you do to be upfront about the long shipping times:
1) Add a disclaimer that shipping will take 2-4 weeks in the product page, and BOLD it.
2) Add a disclaimer in the customer confirmation email. Be clear it will be 2-4 weeks before it arrives and to please be patient.
Being honest is the key to winning PayPal disputes. Losing disputes is how your account will be banned, and your money frozen.
#2: How to Avoid Getting Chargebacks
Credit card companies allow customers to do a chargeback if they have been the victim of a fraudulent transaction. If you are shown to have fraudulently charged them, that is very serious.
There are two main reasons that customers claim chargebacks on Aliexpress dropshipping stores:
1) They don’t recognize the transaction on their credit card statement.
2) They are unhappy about something - usually the long shipping times.
The first is very easy to avoid. If you are using Shopify, when setting up Shopify Payments, make sure you have the name of your store in the Statement Descriptor box.
The second is trickier. Again, you’ll get a LOT less chargebacks if you are upfront and honest with the customer about them. Be sure to set the expectation up front.
But no matter what - any business that is dealing with credit cards should be expecting chargebacks. That is another reason why it’s very important to be upfront with the customer from the beginning with shipping times. If you were upfront, then you should easily win as you can provide proof they knew what they were purchasing:
* You can link them to your product page with your clear disclaimer.
* You can provide screenshots of the page with the disclaimer.
* You can send a copy of the customer confirmation email, outlining shipping times.
In addition, if you use ePacket as your shipping option (which we strongly recommend) you’ll have a tracking number you can provide to show the package is on-route to the customer.
But no matter what, chargebacks are a paid. So there is something else I strongly recommend that you do…
You encourage communication between you and the customer. In your follow-up emails, stress that if they are having any problems, to please contact you immediately. This way, you talk to and calm any upset customers before they attempt to do a PayPal dispute or a chargeback.
#3: How to Handle Refunds when Aliexpress Dropshipping
We strongly recommend that you have a strict refund policy in place that only allows refunds for items that are faulty or broken. Do not allow refunds for people that have simply changed their minds.
In addition, protect yourself by creating a page that has your refund policy on it, and link to it in the store footer. That way, it will be on every page in your store so customers don’t have an excuse for not having read it.
Remember: there are solutions to every challenge and every stumbling block. With research and common sense, you can overcome anything. Successful, rich individuals see these challenges as opportunities. What will you choose to see them as?