Dropshipper and Reseller Ultimate Flashcards

A customer files a chargeback claiming a non-delivery even though tracking shows delivered. What is the dropshipper's strongest defense?

Answer: Submitting the carrier tracking number with proof of delivery

Carrier proof of delivery is the documentation payment processors require to win a non-delivery chargeback.

Which pricing strategy best protects margin when a supplier raises wholesale costs mid-season?

Answer: Keystone markup with periodic repricing

Keystone (roughly 2x cost) plus regular repricing absorbs cost increases while preserving margin.

What is the main risk of relying on a single supplier for a best-selling SKU?

Answer: Stockouts and shipping delays with no fallback

A single supplier creates a supply-chain bottleneck that halts sales when they run out or slow down.

A reseller buys clearance retail items to resell online. This model is best described as:

Answer: Retail arbitrage

Retail arbitrage is buying discounted retail stock to resell at a higher price.

Why should a dropshipper order product samples before listing an item?

Answer: To verify quality, packaging, and shipping time

Sampling lets the seller confirm the product matches expectations and meets delivery promises before customers do.

Which metric most directly measures how efficiently ad spend converts into revenue?

Answer: ROAS (Return on Ad Spend)

ROAS divides revenue by ad spend, directly showing advertising efficiency.

A supplier offers 'ePacket' shipping. What is its primary benefit for US-bound orders?

Answer: Faster, trackable delivery at low cost

ePacket provides affordable, trackable international shipping with faster delivery than standard mail.