#1 TikTok Ads Spy Tool

A Better Way to Make TikTok Ads Dropshipping & TikTok For Business

  • Find TikTok winning products & TikTok dropshipping ads.
  • Analyze TikTok advertisers
  • Get the Latest TikTok Shop Data.
Try It Free

Are Facebook Shops Dead (PSA to Marketplace Dropshippers)

Published on: December 1 2022 by Bryan Guerra

Are Facebook Shops Dead (PSA to Marketplace Dropshippers)

Are Facebook Shops Dead (PSA to Marketplace Dropshippers)

if you're selling on facebook shops or
if you want to at any point in the near
future there are some major issues that
you need to know about okay people have
been claiming random suspensions people
have been claiming random order refunds
even after the order has been delivered
to the buyers address and completely
closed and a number of other serious
things that are obviously going to
affect your your bottom line and give
you headaches okay now i can't
specifically speak to any of those right
they haven't happened to me yet and
hopefully never do but i can speak to
one serious problem specifically which
is a ridiculously high number of
chargebacks okay and in this video right
here i want to touch on why i believe
they're happening and what you can do
about them you know preemptively so that
they don't happen to you as much
and what you can do about them if they
do happen to you to prove your case now
this is a major problem for a lot of
reasons the first being is that you
can't control it you know for the most
part now we're going to touch on some
brief things that you can do to address
it and mitigate your risk here in a
second but it seems like for for
whatever reason
items sold on facebook shops have a way
way higher statistikal chance of
receiving a chargeback after the order
okay and this could be due to a number
of reasons but really the only
explanation that i can come up with that
makes any kind of sense is that facebook
is somehow following up on orders placed
from shops specifically with a specific
option to charge it back if the customer
is unhappy for whatever reason and it
doesn't really make that much sense to
me but it's the only the only way i can
wrap my head around it is like maybe
this is a way that they're trying to
build trust with buyers even though it's
still
very very strange okay
and don't get me wrong like regardless
of whatever their reasoning is it's
great that facebook is protecting
customers
i love that even as a seller right
because it means that people will grow
to trust buying on facebook a lot more
going forward which obviously helps you
and me sell more on the platform so this
is a good thing
but even the most customer obsessed
platforms like amazon for example and
ebay you know still require customers to
at least reach out to the seller first
before filing the charge back and on
facebook marketplace or sorry facebook
shop specifically it seems like they you
know random chargebacks just occur
without any customers bringing it to
your attention first okay on sites like
amazon you have the ability to solve a
customer's issue ahead of time you know
refund them outright if they're a
problem customer or improve at least
their buying experience all before
they're even able to submit an a to z
claim which is amazon's you know kind of
uh chargeback policy right
and so
on facebook shops on the other hand it
seems like any customer can just submit
a chargeback on any order and usually
win it simply by saying they either
didn't receive it or maybe it looks
different from the picture in a small
way and i've even lost a chargeback
because the customer claimed that it
looked slightly smaller in the picture
okay even though the the size was
clearly displayed on the image and the
size was clearly displayed in the
description and they got the same exact
item they simply said they their
impression of the picture made it look
like they were gonna get a smaller item
right or whatever it was i remember
something distinctly uh you know losing
a chargeback claim distinctly for
something that stupid okay and all this
means that you'll not only be losing the
money for the purchase you'll not only
be losing the money that you paid for
the product but you'll also be losing
the chargeback fee that facebook then
assesses you okay and my main shop has
about a 17.5 success rate of appealing
chargebacks which in my opinion sucks
that's 7 out of 40. i received 40 the
majority of which probably happened in
the last month um i don't know the
specific numbers but the majority of
them happened in the past month okay
which means that i lost 660 on
chargeback fees alone so far
and because that's a 20 chargeback fee
each time right
and that's 33 obviously times 20. and
that's not even counting like the lost
money on the transaction or the lost
money for the sale revenue that i no
longer receive obviously after the
chargeback is lost okay so this is a
major issue and this is definitely
something that you know is a huge red
flag and something that we most
definitely need to keep an eye on and
hopefully facebook fix is going forward
okay it definitely casts a huge shadow
of doubt over selling on the platform
selling on the platform entirely and
one of the major things is right like
all the money aside one of the major
things that kind of gives me pause too
is like if you have no control over this
and you continue to get more and more of
these chargebacks randomly without any
you know reconciliation on your part to
either prove them false or even stop
them ahead of time
eventually it's going to lead to your
metrics being being you know harmed and
eventually your store facing a
suspension entirely obviously if
facebook sees that you're that one
store's getting a six a significantly
high amount of chargebacks they're
clearly just you know eventually gonna
suspend that store okay now
all that being said
there are some things that you can do to
mitigate your risk okay
only list products that have good
reviews and a good track record for
making customers happy okay that means
don't just go after great margins if the
product is terribly made but looks you
know worth more on the specific listing
okay and i'm saying this from experience
i'm not telling you like you don't do it
i'm saying it because that's where the
majority of my chargebacks come from
okay they're from cheap a lot of you
know a lot of for example a lot of the
halloween signs that were like halloween
decorations on the front lawn that were
simply just like cardboard signs yeah
you can make a significant markup on
those because they're cheap uh that for
you to purchase a customer is you know
has a perceived value of it being like
20 30 40 even 50 dollars sometimes and
your margins can be great okay but if
you're marketing up marking it up
significantly and a customer just paid
30 40
dollars for a small
cardboard sign they're gonna be upset
about it okay so that's first and
foremost that's one example but don't
just go after great margins if the
product is terribly made but looks like
it's worth more on the list okay go
after products with good reviews go
after products that have a good track
record for making customers happy and if
you do get you know start to see a trend
on a specific product even if it's
making you money delete it from your
store because eventually it's just going
to be more headaches uh than it's worth
okay
also something else that you can do is
something a strategy that i've
implemented on amazon you know for a
long time and that's to preemptively
refund any customer that might have a
slight issue with anything okay
especially if the product price point
was relatively small it's much easier to
refund a customer and lose a small
margin overall on your monthly revenue
then accumulate another blemish on your
store's health and performance okay
so you should go after products with
fast shipping as well on top of that uh
you want fast shipping to customers so
that realistikally they're gonna get
their items quickly and a lot of
customers nowadays expect this number
one but also it'll be easy it'll keep
them happier and it'll be easier for you
to track something that goes wrong in a
shorter window of time right for example
like if you've ju if you receive an
issue on an order that happened within
the last week chances are you're going
to remember something slightly about it
you're going to be able to find that
order a lot easier you're gonna be able
to solve that problem a lot easier
you're gonna be able to get a refund on
your specific side of the order a lot
easier so you're gonna be a lot more you
know inclined to refund and help the
customer that way and it'll just be a
lot more easier to manage from your
perspective right on the other hand if
you you know get an issue with an order
that's like three weeks ago or a month
and a half ago it's going to be a lot
more difficult to find that order to
figure out all the information with that
order because you have a lot more orders
that have happened in the process and on
top of that it's going to be you know in
a lot of ways impossible for you to
refund if it's longer than 30 days or in
some uh some suppliers specifically
longer than 21 days okay so keep all
those things in mind they're all things
that you want to focus on but fast
shipping times make it easier for you to
manage unhappy customers but
realistikally it's going to end up with
in resulting in a lot of less unhappy
customers cut back on amazon as a
supplier you know i still use them don't
get me wrong but i'm actively trying to
move away from them for for a lot of
reasons and i'm gonna touch on them
specifically in another video because
i'm gonna outline this you know in an
entire other video because i think it's
an important topic to touch on stop
using amazon as a supplier to outline
the specifics of it because first and
foremost um that you're going to run
into issues with tba tracking numbers i
know some people think that you can
input them in shops you cannot it runs
you run into a lot of issues inputting
and using tva tracking numbers in shops
and it's going to hurt your metrics in
the long run right but again i'm going
to touch more on that in another video
as well on top of that is if you file a
charge someone files a chargeback
against you
and you input like tba tracking number
as the proof that you ship the item you
lose that every single time right and
i'm not speaking from like and i'm not
speaking from like theory here this is
anecdotal experience it's like every
single time i walk not every single time
but a lot of the times i lost the charge
back it's because i didn't have an
actual specific uh you know tracking
number that i could prove was delivered
to the buyer's address okay so if you're
using tba tracking numbers from amazon
you're going to lose that chargeback
every single time okay so keep those
things in mind
and finally keep detailed records of
everything okay so that means all
purchases you know all your tracking
numbers and all your orders it's gonna
make your life
so much easier okay it's gonna make it
easier to locate the information in the
future if you need to if obviously you
need to prove your case or you know a
buyer has a question about a specific
delivery or item and the good thing is
that a lot of platforms you know
obviously assuming that you're drop
shipping which the majority of you
listening to this are
a lot of platforms are going to keep
track of your purchases you know your
order ids um you know the people that
you're delivering it to their addresses
the tracking number for you they're
going to keep track of a lot of that for
you which will mean that you don't
necessarily have to keep track of
everything
you know
on most platforms right but you still
want to keep track of pretty much all
the things that you need to keep track
of whether that's tracking um you know
whatever orders go corresponding with
that your the money that you spent on it
so you know your numbers obviously and
one of the things that is the most
important from my perspective in my own
business is the actual buyer's name okay
because then once you know the buyer's
name and you know the platform you
obviously you know purchase it on the
majority of platforms you can search via
the buyer's name or the order id okay
key lesson here is you know you don't
want to you want to keep detailed
records of everything because it's going
to make your life a lot easier okay and
one other thing i forgot to touch on too
is obviously you don't want to drop ship
from products from overseas the same
reason being you don't want to use
amazon like obviously amazon delivers
really really fast but you run into
issues with the actual um you know tba
tracking numbers or you know anything
like that
the same reason you don't want to use
pro dropship products from overseas is
even if
you're able to you know get a tracking
number and input that tracking number
into shops there's an actual clause in
shops where the buyers supposed to get
the item within seven days right the
only when you go to set your shop up
initially the the shipping option only
lets you go up to seven days and so i've
lost claims before when people file
chargebacks based on the fact that yes i
have a tracking number that's valid yes
i can prove it was delivered to the
buyers address but the buyer claims they
expected it within seven days and
because it wasn't delivered in seven
days i lose the charge back okay so keep
that in mind all those things are
reasons that you don't want to you know
sell products from overseas and you also
don't want to drop your products from
amazon specifically but those are the
main things to keep in mind and that's
the main thing that you can do about it
okay now all that being said i still
recommend using facebook shops okay
every platform when they start has
issues and make no mistake facebook
marketplace and facebook shops are still
just starting okay and realistikally
right now it's the end of q4 we're about
to when i'm recording this we're about
to move into black friday and
thanksgiving and then obviously
christmas you know hanukkah new year's
and everything like that so i'm sure
it's extra crazy for them right now
hence why a lot of the problems seem to
be escalating right now currently okay
but i still recommend using facebook
shops it's totally normal that they have
to work the kinks out and this is most
likely you know just one of those
scenarios where they're working the
kinks out okay the risk reward ratios is
still 100 worth it if not a thousand
percent worth it the amount of money
that you can make selling on shops is
way worth the risk of any potential
issues that might arise and it's
relatively easy to sell here because
there's so many customers buying
literally everything and anything on the
platform okay but i just wanted to touch
on this issue because it is one that
gives me a little bit of pause here and
it has been an ish it has been an issue
in my own business recently and i know
that a lot of you out there are selling
on facebook shops or at least want to in
the near future and i want you to know
about this right i want you to
understand things that you can do to
mitigate your risk as well as things
that you can do to address it when it
happens to you really hope you enjoyed
that video if you're brand new to drop
shipping i recommend that you get
started with z drop it's a software
that'll help you run and scale your
entire drop shipping business for just
over ten dollars a month i still use it
every single day in my own business and
it's a no-brainer okay it'll make your
listing customer service order
fulfillment and a number of other things
a lot faster
and a lot easier okay now ultimately the
quickest way to get from where you are
now to a drop shipping business that's
paying you consistently every month is
to simply enroll in my dropship pro
course both of those things are linked
directly down in the description below
and if you have any questions please let
me know in the comments and feel free to
check out some of the other videos that
are on this channel on e-commerce drop
shipping and a number of other things
alright see in the next