- Hey guys, Sam here from keycommerce.com.
Man, I'm hearing that a lot
of drop shipping stores are having high refund
and return rates.
It's insane.
Some stores even have up to 30 to 40% of their orders,
the customers requesting a refund, like what!
How is this possible?
It's blowing my mind.
Why is it that none of my clients stores
or none of the stores that I'm working
with have these high refund and return rates?
Refund and chargeback rates so high
that you risk getting banned by your payment processor,
which is absolute hell, when that happens, mind you.
And I can't imagine the pain that you're dealing
with in terms of customer support,
dealing with all these refunds returns and chargebacks.
Seriously, you think that you've made all these sales,
you've made all this money, all this profit,
and then they come back and say, no,
that was a terrible product, you know,
we want our money back.
It's taken away from you, withdrawn
from your account right before your eyes.
Ah!
And there are two big reasons
why people have these high refund rates.
One, your product sucks.
This means that you have a bad buying experience.
You have a long shipping times,
a terrible unboxing experience and just the quality of
the product is really low.
And two, your website copy sucks.
You're setting really high expectations for your product and
that product just doesn't meet them
when the customer gets their order.
And a lot of beginners have these two problems.
And honestly, it's not that hard to fix.
And once you make this mistake,
you're not gonna make it again.
Okay.
First, let's make sure that your product is good.
If you're drop shipping guys, you need to make sure
that whatever you're sending to those customers
is actually good.
If you go to AliExpress, choose a cheap product,
mark it up by 40% and then just get it sent to the customer.
You're taking a huge risk.
Check the reviews.
So many of these products are absolutely terrible
and people hate them.
Why are you destroying your brand by selling these products?
Even if they have no bad reviews
on AliExpress, don't risk selling
a product you haven't actually seen yourself.
You have no idea what your customers are getting.
And you're letting a random supplier send something
to your customer.
Who knows what they could put
in their packaging and your name,
your brand is responsible for this.
Man, it's absolutely crazy.
You really need to do everything you can
to create the best buying experience possible.
Sell high quality products at the right price.
Don't have shipping times that take weeks
and weeks to arrive for the customer.
Guys, we're in the twenties now, 2020 and onwards,
and people don't wanna wait weeks to get their products.
They want that product yesterday.
I also recommend getting custom boxing, custom packaging
and custom labeling done with your supplier.
Even if you're drop shipping.
Yes, and this is entirely possible.
Find a way to get your brand on that product.
Even if it means you go
to Vista print and get a lot of labels printed
and send them to your supplier to actually put on a product,
a tag or what have you.
Okay, guys, the next thing is setting expectations.
This is what you actually put on your website.
I see a lot of product pages
for drop shipping stores and they come to me for help,
and they're just over-hyping this product.
It solves all your problems.
It's a miracle cure.
It's the best thing you'll ever buy in your whole life.
And they set these really high expectations.
So the customer is obviously very excited to receive
the product, but when they actually get
the product they find that it's incredibly low quality,
it breaks, it's broken already, it's dirty,
all these problems.
So of course they feel scammed.
They were oversold.
What they received did not even touch their expectations.
So they request a refund or they charge back on their card.
They feel like they got scammed.
They paid this money
and didn't get the value that they expected.
And honestly, this isn't the customer's fault.
You can't blame the customer for having high expectations
when your product page over sells it
with all these fake reviews and all that, you know, guys,
you gotta be very, very careful.
If your product is incredible, then go ahead and sell it.
It's incredible, show that on your product page.
I work with a bunch of stores that have incredible products.
They've really optimized this product
and the buying experience, so it's incredible.
And they show that on their product pages and you know what?
They sell a lot of products and they have very few refunds
or chargebacks at all.
They have fast shipping, a great unboxing experience
and their products work well.
They do exactly what they promise
and their customers are happy.
One last thing I'll say, guys, is that refunds and returns,
it's actually a form of feedback that you're getting
from the market, from your customers.
If 30% of your customer base is requesting a refund
that's clearly saying
that something is wrong with what you're doing.
You can ignore them and try and push on
or you can stop and fix the problem.
Trust me, this is so important when you run a good business
that does what it promises, it makes a world of difference
in terms of your growth, your brand and your profitability.
Your customers are gonna love what you sell.
They're gonna love what they bought.
And they're gonna tell other people about it.
And I talk about this in a lot of the videos
on my channel about this impact of having a strong brand
because you pay all this money to acquire your customers
on Google and Facebook.
But once you get these customers
that then wanna tell people about your brand,
it's like creating an army of all these little marketers
that go out into the world.
And suddenly you get all these sales
from direct traffic, people just putting your URL
into their browser and buying your stuff.
And this is how this stores grow really,
really, really quickly.
It's pretty insane.
It's, yeah, you can spend a lot
of money on Facebook and Google ads,
that's putting fuel on the fire.
But when you have a good product, a good brand experience
all those people that come through your funnel
and touch your store in any way, man, it just splays out
just with all this new orders.
It's amazing guys.
That's it for this video guys.
Hope that was helpful.
If it was, give it a thumbs up, you know how it is.
Tell that algorithm that I'm making good stuff for you guys.
And let me know the comments below.
Let me know is there other videos that you want me to make?
I'm making two videos a week right now,
really getting that content out
to you guys to help you grow your stores.
If you haven't subscribed yet, guys,
I really recommend you do so and turn on notifications
just cause I'm putting out regular content for you guys.
It's gonna be incredible useful
for you as you grow your store.
Thanks so much for watching guys
and I'll see you in the next video.
Bye for now.
(jazz music)