In 3 minutes you can save yourself $10,000s of dollars.
These are 5 High Ticket eCom risks and how to totally avoid them.
Saving you money, time, and headaches.
// THREAD // 🧵
These are 5 High Ticket eCom risks and how to totally avoid them.
Saving you money, time, and headaches.
// THREAD // 🧵
In just over a year of high ticket eCom and after generating over $4.7M in sales, I've learned to deal with business risks in this exact model.
Implement these 5 different techniques to avoid cutting away at your margins, making critical mistakes, and countless headaches.
Implement these 5 different techniques to avoid cutting away at your margins, making critical mistakes, and countless headaches.
1️⃣ - Chargebacks 💳
Usually, chargebacks appear for 2 reasons.
👉 Fraud
👉 Angry Customers
I've had over 1100+ orders in the last year.
Luckily, I haven't came across a single fraudulent order without having a warning on the Shopify order dashboard.
Usually, chargebacks appear for 2 reasons.
👉 Fraud
👉 Angry Customers
I've had over 1100+ orders in the last year.
Luckily, I haven't came across a single fraudulent order without having a warning on the Shopify order dashboard.
How do you deal with fraud ❓
Shopify's fraud prevention has come a long way and is constantly improving.
Keep in mind that you can still buy insurance on your orders to avoid this issue entirely.
Shopify's fraud prevention has come a long way and is constantly improving.
Keep in mind that you can still buy insurance on your orders to avoid this issue entirely.
For example, the company "Clearsale" will tell you in advance whether or not they can insure an order.
If they can and you accept the payment, they'll reimburse you for any fraud that occurs.
They charge around 0.65% of the total order value to do this.
If they can and you accept the payment, they'll reimburse you for any fraud that occurs.
They charge around 0.65% of the total order value to do this.
I don't personally insure my orders and rely solely on Shopify's warning system.
Here are my recommendations when you receive fraudulent orders.
👉 For "High" fraud risks: Cancel immediately.
Here are my recommendations when you receive fraudulent orders.
👉 For "High" fraud risks: Cancel immediately.
👉 For "Medium" fraud risks"
Send an email to your customer.
If they don't comply with your email, cancel the order immediately.
I'd also add a 3rd option:
A request for a photo of the credit card with the last 4 digits showing that was used to place the order.
Send an email to your customer.
If they don't comply with your email, cancel the order immediately.
I'd also add a 3rd option:
A request for a photo of the credit card with the last 4 digits showing that was used to place the order.
How do you deal with angry customers ❓
Quite an easy fix and it comes down to OVER communicating with your customers
👉 Accurate Shipping Times
👉 Don't accept the payment until they're aware of the accurate ETA
👉 Update the customer consistently
Any small error, tell them
Quite an easy fix and it comes down to OVER communicating with your customers
👉 Accurate Shipping Times
👉 Don't accept the payment until they're aware of the accurate ETA
👉 Update the customer consistently
Any small error, tell them
Overcommunicating will ensure you'll have fewer angry customers.
Not to say you won't ever come across them because you certainly will.
But doing this allows more room for communication and coming to a solution.
Not to say you won't ever come across them because you certainly will.
But doing this allows more room for communication and coming to a solution.
I've only had:
👉 5 chargebacks
👉 2 of them won
👉 3 still pending
👉 5 chargebacks
👉 2 of them won
👉 3 still pending
2️⃣ - Shipping Damages 📦
There are 2 types of scenarios here:
👉 You shipping on your suppliers account (they pay for it)
👉 You pay for your own shipping
I prefer to ship on my suppliers account, roughly 80% of the time I'd say.
I'll cover both scenarios.
There are 2 types of scenarios here:
👉 You shipping on your suppliers account (they pay for it)
👉 You pay for your own shipping
I prefer to ship on my suppliers account, roughly 80% of the time I'd say.
I'll cover both scenarios.
How do I deal with damages when shipping is done through the supplier ❓
If any damage occurs through shipping, your supplier will cover it.
As LONG as you send this email after the order is placed!
If any damage occurs through shipping, your supplier will cover it.
As LONG as you send this email after the order is placed!
The only time I lost a large chunk of money from shipping damages on a suppliers account is because a customer signed for delivery of a damaged product thinking the warranty would cover it.
Usually, good suppliers will cover it, but this wasn't a good supplier.
Usually, good suppliers will cover it, but this wasn't a good supplier.
It was the customer's fault, I could have technically decided to not cover it and would have won the case.
He watched his product fall off a truck and still signed.
He was trying to do us a favor by accepting and have us send a repair part instead of a new product.
He watched his product fall off a truck and still signed.
He was trying to do us a favor by accepting and have us send a repair part instead of a new product.
I understood the situation and genuinely believed him.
I would've thought the same in that case, no one reads BOL forms anyway.
So we covered the damage.
I would've thought the same in that case, no one reads BOL forms anyway.
So we covered the damage.
How do I deal with damages when shipping is done through our account ❓
Simply send the same email as above but make sure you purchase insurance through the carrier you're using.
We use Freight Club for any orders we ship ourselves.
Simply send the same email as above but make sure you purchase insurance through the carrier you're using.
We use Freight Club for any orders we ship ourselves.
You can check the rates of various LTL carriers and choose the cheapest.
Admittedly, I've had friends go through the claims process with them, and claim it's been a nightmare.
I haven't had to yet.
Admittedly, I've had friends go through the claims process with them, and claim it's been a nightmare.
I haven't had to yet.
3️⃣ - Cashflow Management 💰
One annoying element of the business is cash flow management.
Every supplier will have you pay at different times.
👉 Immediately upon order submission.
👉 Day the order is shipped
👉 Randomly send you a bill months later - "Net" terms.
One annoying element of the business is cash flow management.
Every supplier will have you pay at different times.
👉 Immediately upon order submission.
👉 Day the order is shipped
👉 Randomly send you a bill months later - "Net" terms.
Given this:
If you have taken your customer's money for an out-of-stock order and your supplier has NOT charged you for it immediately upon submission, I highly advise you to put the funds into separate accounts.
I use "Jars" on Wise. A very easy way to separate your money.
If you have taken your customer's money for an out-of-stock order and your supplier has NOT charged you for it immediately upon submission, I highly advise you to put the funds into separate accounts.
I use "Jars" on Wise. A very easy way to separate your money.
4️⃣ - Refund/Return Policies 📃
For these kinds of policies, I simply recommend mirroring your supplier's policies.
Meaning, if they'll refund you for something, do the same for your customer.
If their warranty is 5 years, so is yours.
For these kinds of policies, I simply recommend mirroring your supplier's policies.
Meaning, if they'll refund you for something, do the same for your customer.
If their warranty is 5 years, so is yours.
For example: Have a parent "default policy" that looks something like this:
Then, use an app such as "Tabs by Studio"
You can attach a tab for every brand's products specifying the EXACT terms of their warranty and returns which they will provide you/you will find on their website.
You can attach a tab for every brand's products specifying the EXACT terms of their warranty and returns which they will provide you/you will find on their website.
5️⃣ - Variable Shipping Costs 📦
Top suppliers will have pre-determined shipping rates for you.
You'll know in advance the landing cost to the end user.
However, some will quote you a specific amount for each order.
This is called "variable shipping costs"
Top suppliers will have pre-determined shipping rates for you.
You'll know in advance the landing cost to the end user.
However, some will quote you a specific amount for each order.
This is called "variable shipping costs"
This will also be the case on any order that you ship yourself.
For these situations, make sure to tell the supplier:
"Please confirm with me the final shipping quote before sending the order".
To see what happens when you work with bad suppliers who do not do this for you.
For these situations, make sure to tell the supplier:
"Please confirm with me the final shipping quote before sending the order".
To see what happens when you work with bad suppliers who do not do this for you.
I posted a story thread going over how I lost $15,000 cause of landed cost issues.
Make sure you know your landed cost before you SHIP anything.
And try to work with suppliers who will tell you your landed cost in advance.
Make sure you know your landed cost before you SHIP anything.
And try to work with suppliers who will tell you your landed cost in advance.
If you learned any amount of information from this thread:
1️⃣ - Like and retweet the first tweet
to share this so others can check it out.
2️⃣ - Follow for more e-commerce-related content.
1️⃣ - Like and retweet the first tweet
to share this so others can check it out.
2️⃣ - Follow for more e-commerce-related content.
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📷 Business IG: instagram.com
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