Dropshipping Horror Stories What we Should Learn?

eCommerce Horror Stories to Tell in Dark


Is it there? It’s getting colder, there’s a chill in the air and pumpkins are everywhere. Halloween is just around the corner. Halloween is a favorite holiday for horror fans and anyone who enjoys all things that go bump in night. We thought it appropriate to channel Stephen King and share some horror stories from eCommerce that will make your nightmares come true. This article is a work-intensive piece.

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shopify dropshipping store set up

The Tale of Lost Data

Tim’s eCommerce shop was a success! He would often find 20 overnight orders in his eCommerce store each morning. Tim is known for his exceptional customer service. Tim always answered customer emails before entering sales data into his ERP. He was surprised to find out that customers would send him emails stating that they had received the wrong product or that items were missing from their order.

Tim’s curiosity grew as he grew older. He didn’t know where these errors came from. He resolved to find the root cause. Tim spent the night comparing sales to ERP records. Tim was shocked to discover that the ERP had incorrect quantities or products. Tim was shocked at how he had let his customer down. Those orders will haunt Tim’s dreams for the rest of his life.

When it was time to pack orders. Karen noticed that her team didn’t always have enough product to fulfill all orders. Karen was stunned that this was happening, as they had an automatic inventory ticker in their Shopify shop. Shopify would automatically deduct a product’s purchase from their inventory each time it saw it. Karen’s team was eager to audit their sales and find out where they were selling too much. Surprised, they found that Shopify’s inventory counter did not account for multi-channel sales on platforms like Amazon or Walmart. They now check their inventory levels every time a sale is made, in horror, worried about overselling.

Dropshipping is a profitable ecommerce option for sellers with little capital. This model is different from traditional online shops in that sellers don’t need to store products in a rented warehouse and manage inventory. They can also process shipments. It sounds simple, right?

Dropshipping can be difficult. This is why so many people think that it is possible to make an ecommerce business model work by simply setting up a system and forgetting about it. Despite fierce competition, dropshipping stores can still do well. Here are 10 tips from dropshipping horror stories if you are thinking of opening an online dropshipping shop.

Amazon and eBay Can Ban You at Any Time

If you’re planning to sell products of a dropshipper/wholesaler/distributor via Amazon, eBay, or any other platforms, you don’t have much control about their policies. If a buyer reports you or you receive negative feedback about your account, you cannot do anything to change it. Sellers may even file disputes for months or years without any success.


You can get a domain name and a hosting provider to start your own online store. Although this isn’t an easy solution since you will be creating your own store from scratch, there are many tasks involved such as uploading products and attracting customers. However, it is well worth it because you have complete control over it.

PayPal Shuts Down Your Account

PayPal is the most widely used payment gateway. However, it can become a nightmare if it determines that you are selling counterfeit items or your activity is ” uncommon“. (receiving $5,000 after weeks of $200/day). PayPal will hold payment for up 21 days to make sure that you have sufficient funds to cover future claims or refunds.


Unfortunately, no payment gateway supports dropshipping. PayPal allows dropshipping, while other payment gateways (like Stripe), ban it. Dropshipping has been a success for many store owners. They recommend that you not tell Stripe or PayPal that your store uses dropshipping. It is important to ensure that your suppliers deliver on time. This will allow you to avoid any chargebacks and maintain your PayPal account.

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shopify dropshipping store set up

Item not as described or damaged

This could be detrimental to your online store’s reputation, as damaged or poorly-described products can lead to negative reviews and refunds.


If you purchased samples of the products you were selling in product research, it shouldn’t have been an issue. If an issue does arise, you should apologize and rectify it. If the buyer is serious about the item and willing to wait, it’s best to contact your supplier to request a replacement. Send a refund immediately if the item is not in stock.

Shipping delays

Dropshipping is notorious for delays in shipping. You don’t control inventory or shipping methods and are therefore at the mercy your supplier, as well as the possible wrath from your customer, who is waiting for the product to arrive.


It is crucial that you test their speed in processing orders and shipping items when shopping for suppliers. Find out everything you can about the fulfillment, handling, and delivery process. Most suppliers respond within 24 hours. This problem can be avoided by finding reliable suppliers that offer reliable delivery options.

Problematic Order Fulfillment and Returneds

Sometimes your customers might receive the wrong item, or the wrong quantity. You cannot blame your supplier if this happens. Communication with your supplier and customer will remain your responsibility. Problem orders will always affect your store’s reputation.


You can avoid fulfillment problems by ordering your top five selling products ahead of time so that you can store them locally and then ship them out. You can communicate with your target market that you source products overseas, and explain to them that returns may take several weeks. Customers won’t feel trapped if an order is incorrect or the item cannot be replaced quickly.

Bad Dropshipping Partners

Reliable partners are the most important part of any dropshipping model. Dropshippers are responsible for stocking and shipping the product you sell. Unreliable dropshippers could cause you to lose money. After orders were delayed for several weeks, Vanessa ‘s highly-rated eBay shop was affected by one customer.


Dig deep in finding reputable dropshipping partners. Smaller wholesalers may take customer service more seriously that those who are well-known. Check to see if dropshipping partners offer:

* Real-time inventory feed* Fair return policy
* Multiple shipping companies
* Tracking codes for shipment
* English-speaking customer representatives
* Order samples to check fulfillment speed

You can also work with multiple dropshipping companies to simplify order routing.

Dropshipping doesn’t need visitors

It is difficult to create a store completely from scratch. Although it is not easy, it is possible. Don’t expect to sell your store right away. You need to allow organic traffic to continue to flow in for months.


Do not be deceived by “set-and forget” statements that are used to encourage others to dropship. Although passive income can be achieved with a dropshipping business, it is not easy. You must work hard on search engine optimization and automation of fulfillment.

Training is also important. Proven Amazon course is my top recommendation for how to harness the power of Amazon and build a dropshipping business.

Customer E-mails Angry

Customers can make it difficult for newcomers to ecommerce. This is a common occurrence in the ecommerce industry. It’s impossible to please all your customers.


If the customer is upset about delays or incorrect items received, you can apologize and offer to repair the problem. If the customer is to blame, you can learn how to protect your store. See how stood firm when a customer requested a refund for a damaged item but refused to ship it back.

Out-of Stock Items

You may run out of stock or have to discontinue an item completely, and then you are left wondering where to locate the product your customer ordered. Dropshipping is a very competitive business. This can happen frequently and often it is beyond your control.


Tell your customer about the status of the item. Customers would rather receive calls than e mails, even if it’s more difficult. Check availability if you can source the item from another supplier. Customers may be willing to accept alternatives. If this is the case, research similar products from other suppliers and then recommend them to your customer. If you fail to communicate with your customer about these issues, it can lead to negative ratings, or worse, chargebacks by the payment gateway that your customer used.

Selling for a loss

Dropshipping is a lucrative business. However, dropshipping can be costly. Selling for a loss is unacceptable since you built the business to make money and not lose it. These things are more common for online shops that use dropshipping. This is due to how many hands products have to go through before reaching the customer.

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shopify dropshipping store set up


Either you can sell products priced over $100 or scale your business to sell more (even if they are all below $10). Dropshipping stores don’t have the luxury to compete on price. This is one of their most crucial decisions. You’d also need to be involved with customer service. Make sure they get the products as described, in good condition and packaged well. This will earn them trust and increase repeat business.

The bottom line

Dropshipping, like any other type ecommerce, isn’t an easy business. Dropshipping has huge potential, but it will require extensive research to locate reliable suppliers. It will save you a lot of hassles in the future and prevent financial loss.