Dropshipping Dropshipper and Reseller Ultimate 2 — Questions and Answers
Question 1: A customer files a chargeback claiming a non-delivery even though tracking shows delivered. What is the dropshipper's strongest defense?
- Submitting the carrier tracking number with proof of delivery (Correct answer)
- Ignoring the dispute and refunding later
- Blocking the customer's email
- Posting a public reply on social media
Correct 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.
Question 2: Which pricing strategy best protects margin when a supplier raises wholesale costs mid-season?
- Keystone markup with periodic repricing (Correct answer)
- Permanent loss-leader pricing
- Matching the lowest competitor automatically
- Free shipping with no price change
Correct answer: Keystone markup with periodic repricing
Keystone (roughly 2x cost) plus regular repricing absorbs cost increases while preserving margin.
Question 3: What is the main risk of relying on a single supplier for a best-selling SKU?
- Stockouts and shipping delays with no fallback (Correct answer)
- Lower advertising costs
- Improved SEO rankings
- Faster customer reviews
Correct 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.
Question 4: A reseller buys clearance retail items to resell online. This model is best described as:
- Retail arbitrage (Correct answer)
- Private labeling
- Manufacturing
- Affiliate marketing
Correct answer: Retail arbitrage
Retail arbitrage is buying discounted retail stock to resell at a higher price.
Question 5: Why should a dropshipper order product samples before listing an item?
- To verify quality, packaging, and shipping time (Correct answer)
- To avoid paying sales tax
- To increase ad spend
- To register a trademark
Correct answer: To verify quality, packaging, and shipping time
Sampling lets the seller confirm the product matches expectations and meets delivery promises before customers do.
Question 6: Which metric most directly measures how efficiently ad spend converts into revenue?
- ROAS (Return on Ad Spend) (Correct answer)
- Bounce rate
- Page views
- Email open rate
Correct answer: ROAS (Return on Ad Spend)
ROAS divides revenue by ad spend, directly showing advertising efficiency.
Question 7: A supplier offers 'ePacket' shipping. What is its primary benefit for US-bound orders?
- Faster, trackable delivery at low cost (Correct answer)
- Free product samples
- Automatic tax exemption
- Guaranteed next-day delivery
Correct answer: Faster, trackable delivery at low cost
ePacket provides affordable, trackable international shipping with faster delivery than standard mail.
A customer files a chargeback claiming a non-delivery even though tracking shows delivered.
What is the dropshipper's strongest defense?