Backorders can break the backs of online retailers. If you can't quickly deliver a product to your customer, they might just cancel their order and look for a more reliable webstore. Because drop shipping places inventory control in the hands of your supplier, it raises your exposure to the risk of backorders. You can, however, implement some strategies for minimizing your exposure to backorder situations:

	Monitor Quantities on Hand (QOH)
	Run shorter auctions
	Cancel an auction when supplies run low
	Pad your inventory by drop shipping items to yourself

In the following sections, I explain these strategies in greater detail... Read More