Dropshipping : How to Avoid or Even Deal with Order Cancellations?

Dropshipping is a promising approach for eCommerce business owners who need to keep their overhead low. Today, with the increase in remote trade, most businesses, and stores switch to online stores. Most people, especially retailers, have started this dropshipping business that can benefit them in many ways. They bring items and products from the other store and ship them to their customers. In this way, they have increased their passive income without much investment.

What is Dropshipping?

It is a retail technique where brands do not directly distribute and manage their product inventories. When a person receives the order, its information such as order date, delivery address and the product number is sent by the store to 3rd-party to fulfil the order on its behalf. It contains main five subjects.

  1. A buyer places an order with the retailer of dropshipping
  2. Retailers pass the order to the whole seller
  3. The whole seller gets the order from the retailer
  4. Wholesaler ships the order
  5. Buyer receives the order

Why start with Dropshipping instead of a Physical store?

Test a new revenue stream

Dropshipping is the right way to discover including an additional revenue stream to your present eCommerce business. Hosting a dropshipping business can provide a unique opportunity to experiment with offline sales. If you are at the right place and at the right time, then you will be able to earn more and more profit for your business without the risk that traditional retailers incur.


We all know that these shops are temporary, more minor and conventional retail stores. Therefore, the cost of the rent is lower. It is suitable for new business set up because you do not need to pay much for the location you will place your shop. You need a very small budget for these shops and set-ups. The cost of the structure is not very high and expensive. You do not need much staff to manage the customer’s dealing.

Short-term commitment

The pop-up shops allow for the selective approach to sell and market the products. Instead of being locked into the agreement for rent for a long time, the business owner can commit to a fixed period that can be short.

Less risk

Short-term commitment and rental agreements make these stores more cost-effective and affordable for business owners. They do not need to keep their merchandise in the area to store. There is no risk of damage or loss of items. Moreover, they can get the chance to test the market for the products. In this way, he gets the feedback of the customers and knows the trend of the market. It increases ease for the business owners.

Boosts your productivity

Most people think that in the store environment, there is no distraction and interruptions. But, asking questions, constant operational noise of the customers, co-worker’s interactions, or phone calls can leave an impact on your productivity level. In a drop shipping business, you are relaxed and can focus on working without any hassle. Moreover, it can be the right source of increasing the awareness of the brand in the market. You can create the market of your products on a small scale. In this way, customers know about the quality of the product. You can save money that you may spend on the promotion of these things.

How to prevent order cancellation?

Sometimes orders on web stores are delayed or cancelled, and you may not know the reason behind it is. Some buyers contact the store, but most of them do not figure out the answer. The major cause of this order cancellation is suspected fraud. Sometimes, small stores deal with the customers who use the stolen and scam credit card. Due to this reason, they cancel the order to prevent scam or other monetary loss. Some websites allow the users to pay cash on delivery. Some of the ways to handle these frauds and order cancellations are here.

1.      Keep Tracking Your Orders

Tracking orders is an obligatory for a dropshipping store. In fact, Knowing the state of your order – having an eye on your product – at every stage from Warehouse inventory to the client door will help you identify the weakness of your e-commerce and keep improving your e-commerce. Moreover, almost every client will ask you at any time about his parcel, especially if they have not shopped with you before and you need to answer and give them the right info if you want to build a trust and let them return as customers! You can start tracking your orders easily with an excel spreadsheets like this. However, automating this task, by using a sophisticated web app will help your customers get a better experience.

2.      Do not use a different shipping and billing address if it is possible.

One of the major scam indicators is a mismatch of shipping address and billing, especially between two states. You may ask for the right address of billing and shipping when you will take the order. It is important to take the right information for you. These criminals do not have the right shipping address as their house. They never give the right address. With the different billing and shipping location, they can make it easier to change the delivery location. If having different shipping and billing addresses is essential, there is an easy method to deal with it.

3.      Use email address

In the dropshipping business, with few orders, it seems everything fine. Taking an email Id can help you in saving you from the order cancellation. It is related to the person placing the order goes a long way. You need to be aware of web security and safety protocols to protect your business.   If the email ID is spam or it is not in use for the long time, then you will come to about it whether it is fake or not.

4.      Turn off your VPN

If you feel that in the order something looks odd, it is important to check the IP address from where the order is placed. If it says it is an IP from a different area, country, or state, you can declare it invalid. These spam orders have IP addresses that do not match with their shipped or billed order. Most of the fraudulent buyers can use the stolen credit card and set it on any place. If it’s in the right order, then you will get all its information correctly.

Bottom Line

You can save your dropshipping business from scam and fraud. The major reason behind order cancellation is scam or fraud. Moreover, in some cases, you face order cancellation due to late delivery or mismanagement. In this situation, you need to contact the buyer and try to manage the error. Provide them immediate customer support. In this way, you can prevent order cancellation.