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6 Mistakes Dropshippers Make When Starting Out

Posted: 26 May 2019 08:00 AM PDT

AmeriCommerce estimates that retail e-commerce businesses account for as much as $220 million in revenue annually. Dropshipping has the potential to be a major edge for online sellers for several reasons, from reducing overhead to shorter shipping and fulfillment times for orders. These benefits can only be realized with proper implementation of the factors that contribute to successful dropshipping.

The sad reality is that many new e-commerce entrepreneurs are either ignoring these basic steps or completely unaware of them because they seem trivial. To increase your chances of success in an e-commerce venture, don't make these mistakes.

Mistake #1: Betting all your chips on one supplier

Having a unified supplier is a benefit in several cases: There's only one point of contact, and all products are shipped directly from that one location to your customers. However, the situation of a supplier running out of stock or being unable to meet demand does arise on occasion. Researching and keeping in contact with a secondary or backup vendor is a necessity.

This assumes that the primary vendor you're engaged with doesn't require you to only deal with them. Pay attention to the contract you sign with your supplier for any predatory clauses like this before signing it. They could be the reason your e-commerce business sinks or floats.

Mistake #2: Getting the wrong supplier for the job

The choices for suppliers are myriad in the world of dropshipping. You need to make several decisions before you choose one. Do you prefer products made locally or shipped from overseas? What are the overhead costs and the inherent benefits and drawbacks of each? There's a long checklist you ought to go through before settling on a supplier. Shopify notes that the steps in selecting a supplier vary by industry and the type of product you intend to sell. The best way to choose a supplier or suppliers is to check out any existing reviews of their service to gauge their sustainability and dependability.

Mistake #3: Not letting customers track products

Customers of any self-respecting e-commerce store expect a certain level of tracking for their products. The E-commerce Digest mentions that most customers prefer knowing where their packages are when they're being shipped. Constant communication with customers is a necessity in the dropshipping arena; customers have come to expect it as part of the e-commerce service. Tracking does more than add transparency to your business – it also gives your customers peace of mind. It's much nicer for a buyer to know their product is on its way and where it is in its journey than simply hope the package will show up in around two weeks.

Mistake #4: Charging surprise fees for shipping

According to Marketing Land, about 90% of shoppers point to free shipping as their No. 1 reason for shopping online. One of the hardest things to reconcile for buyers is the additional shipping cost tacked on to a particular item. Shipping costs should be clear upfront so that buyers aren't surprised by an additional cost that may send them over budget. To ease this process, you may want to consider including a shipping calculator on your checkout pages or somewhere within your e-commerce store. If you get a lot of orders, a single flat rate may suffice.

Mistake #5: Depending on a single store

Setting up an initial niche is a big task in itself for an entrepreneur, but once you have that niche, the job isn't nearly over. To develop a consistent and effective income, you'll want to have a handful of businesses, each dedicated to its niche market. The research to set up these stores and provide products for them may take time, but not nearly as much as the initial niche development, since you already know what you're doing and looking to achieve. Diversifying business allows you to manage your risk a lot better, according to HuffPost. You can also research dropsurfing and create a dropsurfing store to give you more options and income streams.

Mistake #6: Not having a clear return policy

CNBC stated in a report that return rates from online stores often go over 30%. Returns are inevitable, so a store that is dedicated to its customer base should have a streamlined and easy-to-use return system. A clearly outlined return policy is also a necessity, not only to keep your customers satisfied but to avoid running afoul of the law. Returns make you perform a balancing act between your supplier and the goodwill of your customers – an act that many entrepreneurs fail to achieve, neglecting one side or the other.

Staying ahead of the curve

E-commerce is a rapidly growing field that won't slow down anytime soon. Burgeoning e-commerce businesses are all competing in the same space, albeit in different niches. To stand out and make your brand recognizable, you must sort out the basic building blocks of e-commerce, from your customer interaction to your supplier availability and reliability. These things can make or break your business. Being aware of the mistakes that plague new entrepreneurs is only the first step. Making sure you don't fall into those pits yourself will take a lot of effort, but you'll find yourself well ahead of most competitors.

Pros and Cons of Fitness Trackers for Employees

Posted: 26 May 2019 08:00 AM PDT

As good as prompting workers to pay attention to their health might sound, though, providing wearable devices might spark concerns around privacy and preferential treatment.

According to a study by the JAMA Network, it may yield little to no actual benefits to employees. The study examined the experience of 33,000 workers at BJ's Wholesale Club over the course of a year and a half. It found that, while workers had higher levels of physical activity or exercise and paid closer attention to their weight, there were no significant changes in things like their blood pressure or sugar levels, and no reduction in the company's healthcare costs, which is often a major motivation in implementing health and fitness programs.

A health and wellness program like company-provided activity trackers often has a long list of pros and cons. Business News Daily spoke to health professionals and business experts to see what benefits and negative effects wearable fitness trackers could bring to your business.  

Pros of fitness trackers in the workforce

"Employee fitness incentive programs can result in reduced absenteeism, greater worker productivity and lower employee turnover," said Alfred Poor, Ph.D., editor of Health Tech Insider. "All of these factors can result in real bottom-line financial savings for employers."

In addition to increasing employee engagement, implementing an activity tracker program can create a culture of gamification in the workplace, which has been proven to increase morale, focus and drive for a given task. Gamification makes the mundane fun and provides social support, which increases a participant's chances of maintaining their progress.

"Many organizations find that offering wearable fitness trackers that have shareable data encourages teams to work together to reach not only corporate goals but also [personal] fitness goals," said Jared Weitz, CEO and founder of United Capital Source. "This drives collaboration and camaraderie amongst the team." 

Healthy, happy workers are productive workers, which means good things for your business's bottom line, despite what the JAMA study found at BJ's Wholesale Club.

"You can't just buy a bunch of fitness bands, hand them out, and then expect to get gains," said Poor. "[The JAMA study] result runs counter to many, many other studies, and it shows that you need to have a solid plan that is managed well. If not, you run the risk of wasting money and alienating workers."

For example, a study published in the Harvard Business Review showed a 6-to-1 return on investment for companies that implemented a wellness program.

As Poor said, a well-planned program can mean lower healthcare costs for your company as your employees gain better health and wellness. The Affordable Care Act offers a provision under which employers can offer wellness incentives, such as gift cards or rate discounts to their employees (paid for by insurers) if they do fitness tracking.

To make sure your program gets off on the right foot, start with a thorough assessment about your employees, their health risks and what they want out of a wellness program, and design the program around those responses. Then develop a clear set of goals and objectives detailing exactly how you will achieve those goals. [Learn more about setting achievable goals.]

Finally, outline a budget, what your incentives will be, and how you will communicate the wellness plan to your employees.

Cons of fitness trackers for workers

The biggest downside that comes to everyone's mind with employer-provided fitness trackers is invasion of privacy. Many people feel that their health and wellness is their business alone and should not be shared with their employer, whether this is just on principle or out of concern for health-based discrimination.

Employers having access to employees' biometric data is a gray area of legality, according to Corporate Wellness Magazine. Labor lawyers have expressed concern that employers may use fitness device data to justify promotions or pay raises, or even as reason to terminate an employee. Having access to employees' health data is a violation of both the Health Insurance Portability and Accountability Act (HIPAA) and the Genetic Information Nondiscrimination Act (GINA).

A typical fitness tracker wearer, whether it was purchased personally or given by an employer, will not run aground of HIPAA violations. Wearable makers like Fitbit and Apple have devoted significant efforts to making sure their devices comply with HIPAA. It is only when a healthcare provider asks for data collected by the device that HIPAA would come into play.

The Americans with Disabilities Act (ADA) also prohibits discrimination based on an employee's health status. An employer having access to an employee's weight, heart rate or other metrics could open that employee up to potential discrimination. Because part of the reason that many companies implement wellness programs is to ultimately cut down on healthcare costs, legal professionals worry that this may lead to employers – consciously or unconsciously – using health as an element in their decision-making.

Another main concern is that data collected by wearable devices is not held in databases with the same security or regulations as data collected by doctors or hospitals, leaving it vulnerable to hacking.

The best way to deal with this, said Poor, is to give your employees as much information and choice as possible.

"When I work with companies on developing [wellness] programs, I encourage them to give employees the option to opt in to the program and not force them to participate," he said. "This gives them the choice to share their data or not."

The key is to make the program entirely voluntary and open to the whole company. This way, you avoid targeting any particular demographic and lowering morale by taking away choice.

Other ways to promote health in your business

There are many ways to promote health and wellness in your company that can either augment or replace wearable devices.

"Consider looking for discounted gym memberships that you can offer your employees," said Weitz. "Look at your office as an opportunity – install standing desks, conduct ergonomic assessments, and stock break rooms with healthy foods and beverages."

You can also foster bonding and engagement by planning active outings with your employees, such as playing casual sports games, participating in community walks and runs, or scheduling a visit from a dietitian or nutritionist.

Consider sending out a survey to see what your employees want or would enjoy. This way, you can ensure that you meet their needs and avoid alienating part of your workforce.

7 Things to Know About Working with Gen Z

Posted: 26 May 2019 05:00 AM PDT

Millennials have indubitably been the main subject (or punching bag, depending on whom you ask) of talk surrounding the various generations that currently make up our society (baby boomers, Gen X, millennials and Gen Z) for the past 10 years.

But millennials are starting to move out of the spotlight to make room for Gen Z, the generation born between 1995 and 2015. Gen Z is known for having grown up almost entirely on technology, for craving engagement and for their pragmatic worldview. Where millennials were fed a steady diet of idealism during the relative calm of the '80s and '90s, Gen Z has grown up in a world affected by frequent acts of terrorism, economic uncertainty, and societal upheaval.

So what does this mean for business? Because Gen Z has such a markedly different way of both seeing the world and interacting with it compared to previous generations, businesses must be prepared to adjust and reevaluate their practices.

After all, the oldest members of Gen Z are now 24 and have already been in the workforce for a couple of years, and it won't be long before they make up the majority of working professionals.

Here are seven things you need to know about working with Gen Z.

1. Recognize – and respect – technology.

Technology is probably Gen Z's biggest marker. A significant portion of Gen Z's interactions with the world is digital, whether that's on social media or the internet proper. Your business should make sure it has a robust and engaging online and social presence. If it doesn't, it will alienate Gen Z by making your business look like it's out of touch.

"This is the first generation of true digital natives," said Blake Hutchinson, CEO of Flippa. "As such, they expect to have a digital relationship with brands."

2. Create meaningful work and feedback.

Gen Z is a highly socially conscious generation with a strong desire to give back and participate in social programs through their place of work. This creates a sense of purpose and heightens engagement, which 84% of Gen Z rates as highly important when choosing their jobs.

"Do not underestimate how important your mission is to a values-driven Gen Z'er," said Alex Shadrow, co-founder of Relovv. "The why behind what they do is critical."

This involves explaining how and why their position is important to the company and how it fits into the larger picture, as well as providing regular, meaningful feedback.

"Gen Z is all about connecting," said Miles Maftean, career writer and researcher at Zety. "They run on push notifications. They post a picture on Instagram, and if they don't get X number of likes, they're affected by it. This matters in the workplace. You'll need to give them feedback on a daily basis for them to realize that they are doing a good job."

Try checking in with your Gen Z employees casually each day, and see if they're open to a regular weekly meeting. Every employee is different and will require different levels of attention from their manager, so leave it up to them to dictate what they want from you.

3. Avoid micromanaging.

Gen Z is the DIY generation. Michael Arnold, a business coach, shared how he watched one of his young sons replace parts in his car on his own by watching YouTube tutorials and his other son lead new online game players through the process of accessing and using the server in exchange for free playing time from the host.

"When I asked them how and why they do these things without asking for help, they said, 'You guys are busy; we didn't want to bother you.' This is how the new workplace will look."

"It's in [Gen Z's] collective upbringing to be problem-solvers," added Idalia Salsamendi, director of business at Chriselle Inc. "They believe that they can be part of the solution."

Gen Z believes in handling issues and finding solutions themselves rather than being given the answer. Try to foster a space that allows for this exploration, and make sure your employees know where to go for support if needed, like a coach, says Laura Weldy, life coach at The Well Supported Woman.

"This generation prefers that their managers act more like coaches instead of bosses," she said. "For this to be effective, managers should understand the difference between coaching, which involves powerful, thought-provoking questions to unlock potential and inspire self-realization, and micromanaging, where a leader provides all the answers and acts more like a taskmaster."

Weldy said that Gen Z'ers value their independence just as much as their communal value, and traditional top-down management can feel stifling. Instead, managers should include their employees in the discovery process and consider investing in enrolling managers in a coaching program to retain top young talent.

4. Embrace flexibility.

The traditional interpretation of the workplace has a reputation for being stalwart and linear: You arrive, you sit at your desk, you check off your to-do's, and you go home. But in recent decades, that has changed, thanks in large part to millennials blazing the path for dog-friendly workspaces and corporate-led philanthropy.

Gen Z is taking things a few steps further, championing flexible hours, remote work and the freedom to customize their role and duties.

Weldy said that she sees clients often feeling frustrated that their roles don't feel suited to them as individuals. "They're being asked to fit a square box when they are a round peg," she said. "They're working hard, long hours but still not feeling satisfied – and when they come to leadership with ideas on how to adapt their role to better serve the company and their own needs, it falls flat."

Companies need to be willing to explore flexibility within the workplace, both with practices and employees. The nature of work is changing to be flexible in many ways, and Weldy said it is becoming a problem of hypocrisy with many companies. "These innovative companies are still built upon outdated ideas of strict roles and top-down management."

5. Prioritize human connection.

Despite being known as the tech generation, Gen Z places a high value on face-to-face interactions – more than 74% prefer face-to-face connection than other forms, citing a higher value on effectiveness rather than convenience.

"Think of a classic management class you took," said Maftean. "You're taught never to be friends with your subordinates. Well, that won't fly so much with Gen Z'ers. You'll have to connect with them on a more personal level."

6. Have a genuine social mission.

"I've seen [many] businesses try to add on a social mission to their company just to make it attractive to younger generations but without any real feeling or action behind it," said Frances Blount, senior account manager at The Avenue West. "This can majorly backfire. Gen Z can immediately tell when your social mission is not genuine, so make sure your activist efforts are real and authentic."

Gen Z is one of the most socially active generations ever, with 4 out of 5 Gen Z'ers believing that their age group has the potential to change the world for the better. They use the internet as a connectivity tool, sharing ideas, missions, and campaigns to better the world around them, and they actively seek to support and work for brands that have a reputable mission.

If your company has a social mission, make sure it is well-thought-out, active and that there are easy ways for employees to participate.

7. Embrace diversity and inclusion.

Gen Z is also leading the charge in championing true diversity and inclusion. Much like social missions, Gen Z is finely tuned to false accolades, so if you're touting diversity in your company, it should be true.

"[Gen Z] expect and value diversity in any situation," said Dianna Anderson, CEO of Cylient. "Because they've witnessed a change in American culture, they believe culture is malleable and change is expected."

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