How To Reduce Chargebacks On Shopify Dropshipping.

How to reduce chargebacks: If you own a dropshipping business you must be aware of what is a chargeback? A chargeback is a deduction of a certain amount from your bank account as a result of selling bad quality and fraudulent products to consumers. A chargeback can also be called a “reversal” as the amount paid by the consumer to the seller is received back by the consumer. With seriously damaged goods chargebacks could also involve an additional cost as a penalty.

Getting a chargeback is extremely common in the dropshipping business. However, The key thing to know is that if you get too many chargebacks, it may affect your relationship with your payment provider and in a more extreme case they may terminate their contract with you and it can negatively impact your name in the market and affect your business for the long term.

Here are few specific reasons that could lead to knowing how to reduce chargebacks:-

1. Unrecognized transactions

Make sure that your billing statement can be recognized by the customers. Mention your store name and domain name to make it easier for your customer to recognize you while making the transactions. Always provide the customers with a bill once they are done with the payments.

2. Unauthorized store

While sending the billing statement to your customers make sure that your store seems legit and is authorized by the Shopify admin itself. This makes it easier for your customers to trust you while placing orders.

3. Multiple transactions

Avoid multiple transactions. However, if multiple transactions do occur, make sure to refund that as soon as possible and make your customer aware of the whole situation.

4. Products not received by the customers

To avoid this make sure that the products are being shipped as soon as you receive an order for them and always mention the estimated time within which the customer might receive their products. However, if you receive an inquiry about products not being received within the estimated time, make sure that the customers receive the products and/or let them know their order status.

5. Products not up to the mark

If your customer receives a product in an unacceptable condition make sure you respond to that inquiry immediately and send the same order that is up to the mark or refund their money. However, to avoid this make sure that you are clear with the product description and images. The description should be clear and detailed to give your customer a better idea of what they are ordering.

6. No refunds after returns

Have a clear return policy for goods that are being returned by the customers. Always ensure that the customers get a refund once they have returned their product.

7. Neglecting negative comments

You need to focus on the bad reviews and comments as well on your site or FB pages from people who will post negative comments or reviews which will quickly ruin all your hardships.

Chargebacks on Shopify are different compared to chargebacks on other E-Commerce websites. Shopify guarantees businesses against chargebacks on their platform, protects them from chargebacks, and guarantees the fulfillment of the product requirements as soon as possible. However, one should not completely rely upon Shopify to protect their business from chargebacks as Shopify charges a fee to offer a guarantee of payment to the consumer and only protects legitimate businesses.

Nonetheless, we have come up with certain ways one can avoid these chargebacks.

1. Respond to a customer inquiry

Every customer inquiry should be responded to by the seller within 24 hours or less. No business inquiries should be left unattended. You should stay patient with your customers while responding even if your customers are lashing out. Make sure that your contact information is easily accessible on your site.

2. Don’t take orders from Suspicious customers

Have a system that helps you identify customers/orders that are fishy as these are most prone to chargebacks. Investigate your orders and keep a track of their information for the future,

3. Transparency with your customers

Make sure that your customers are hundred percent aware of your customer policies and your store policies are being shared very transparently with your customers.

4. Tracking of the order

Have a system in place that tracks all your orders right from the shipping of the products to the estimated time of the parcel reaching. With tracking of the parcel frequent updates about the order could be sent to the customers.

5. Realistic estimated time

Make sure that you give your buyers realistic delivery dates: Realistic dates can help avoid customers prematurely filing disputes.

The way to avoid/minimize chargebacks is to build a real and serious business that respects it’s customers and offers value throughout. If you want to know how to achieve that using Shopify and dropshipping, check out the video below.

Also Read This Article: Dropshipping Vs Affiliate Marketing Which Will Make You More Money?

Conclusion

Whenever you receive a chargeback from a customer it is very important to stay calm and collected and act wisely even if you are not happy with what your customer is doing. Have a receptive approach towards the situation as it will help you get out of these types of situations easily.

Considering the number of times drop shipping businesses have got a point how to reduce chargebacks it is extremely important for you to track the process of dealing with your customer, right from the investigation of the order being legit to tracking the order to sending a copy of the bill once the order is received. This will help you to provide proof against any false chargeback by the customers.

With the above steps mentioned, you will be able to know how to reduce chargebacks on Shopify dropshipping.