Monday, June 10, 2019

Why Most Dropshippers Fail?

Dropshipping has become very popular in the retail business.  It was an opportunity opened to people who want to veer away from the regular nine to five jobs, as they call it. With this mindset, many got interested in and starting to learn the basics of dropship shipping.  But on the other note, most dropshippers fail the business. Today, we will learn why.

Why do most dropshippers fail?  The reason why most dropshippers fail because there are lots of good articles written about earning on drop shipping, people get too interested and immediately start their own without enough research.  Plus, most people getting into drop shipping are too emotional that when they’re starting up and did not get their expected return of investment, they quit.

What was discussed was just an overview of the reasons why most dropshippers fail.  We have gathered pieces of information shared by people who experienced dropshipping.  We have listed a few and discuss each of them one by one.

Emotional Dropshipper
I know. We just talked about this.  Allow me to elaborate further why this goes first on the list.  I say that emotional drop shipper is a common failure because most of the time, we are too eager to get the number of sales we want to achieve in our store.  I have said this before if you want to be successful in dropshipping, you have to work hard because it takes perseverance to win the game.

While it is true that you can start dropshipping with a minimal capital expense, drop shipping does require marketing strategies that will make your business successful.  This is why a lot of dropshippers subscribe to paid advertising and marketing to ensure that people learn about your store and see what’s being offered.

Wrong Selection of Product Niche
A good product niche is the foundation of a successful drop shipping business.  A niche is used to target your audience and sell the right products, use the correct marketing strategy and increase your sales.  Without making the right decision in choosing the product niche, eventually, even if you have good marketing strategies in place, your business will fail.  

If customers do not like the product you are selling, who will buy from your store?  You will end up spending on marketing agendas that will not gain or will only make minimal returns to your business.
Inexperienced Dropshipper
This is somehow related to the first reason stated as to why most dropshippers fail.  Because of the things you see about earning good money with dropshipping, you are definitely attracted to the things you can get out of it yet, failed to do deep research on doing drop shipping.  

There are a lot of write-ups on people failing dropshipping especially while starting because they lack knowledge of the challenges you might encounter as you go along dropshipping.  

Poor Customer Service
Dropshipping does not only deal with order fulfillment. This part of the business is sometimes overlooked because they think that selling products at a good price and deliver the items to the customer is all it takes to manage dropshipping.  

Before customers decide to take products off your store, they may ask questions about the product, check legitimacy.  When the order is fulfilled, there may be times when it takes time for the customer to receive the products. Or, a certain product that you post online has bad ratings because the supplier was inefficient.  

These are just some of customer support questions that you may encounter at your store.  As a manager, you have to ensure that all these are covered and well taken care of. In addition, good customer support is also one of the reasons to gain customer loyalty to our products.
Highly Priced Products
Sure, our goal is to earn money.  And we know that in dropshipping we only gain a small margin from each sale.  The mindset would be to increase the product to earn more. Yes, you may have the right niche and good customer service.  But, if your rates are not competing against other dropshippers, you will definitely lose the business.

This is where product research comes to the picture.  You want to check the competition, know the statistics of potential customers and publish reasonable prices to your products.

Boring Dropshipping Website
Next on the list is the boring website.  Transactions are mostly happening through your ”store” which is basically the dropshipping website.  Here, what people see reflects the entire business. That’s why I mentioned previously that suppliers look into the drop shipping website to know if the drop shipper is capable of selling their products effectively.  

A catchy and attractive website will drive more market to your sales, also paid ads will eventually come in.  A good drop shipping website should be detailed, updated and has catchy promotions going on to attract customers. Creativity plays a good role in making sure that your website is adequate and attractive for both suppliers and customers.

Inconsistent Marketing and Managing Techniques
Did you know that in drop shipping, a greater portion of the expense is allocated to marketing?  This is very important because the business itself is facing a lot of competition. Because it is easy to set up, more and more wanna-be dropshippers are starting their own.  Now, having a strong marketing plan, and strategies will make the life of your drop shipping.

On the other hand, because there are so many people wanting to succeed in drop shipping, and that is very easy to set up, there are people who are eager at first during startup but in the long run, will eventually lose interest because they are not getting what is expected of the business.  Same with marketing, being consistent overall is essential to fully succeed with drop shipping.

Being in the business of dropshipping, I’d say is easy to start with proper knowledge and research.  Adding perseverance and consistency is a huge thing as well because, in reality, this may be a reliable business model to earn money.  However, this needs additional effort to succeed.

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