Some people will laugh at the idea of starting a dropshipping business in 2021. There are ridiculous claims making rounds that dropshipping is becoming a thing of the past. Some will go ahead to tell you that it is impossible for new dropshipping brands to become successful because the market is saturated.
While it is obviously more challenging to start and grow a dropshipping business now than it was a few years ago, it is still very possible for new entrants to succeed. In fact, the coronavirus pandemic and its devastating economic effects across the world has created a bigger market for intending dropshippers. You just need to know the right things to do and how to do them at the right time.
As stated above, starting and growing a dropshipping business is pretty hard now. Making costly mistakes will certainly end your dropshipping business as soon as you launch it. Here, we will discuss eight costly mistakes you must avoid if you want to start and dropshipping business and succeed with it:
Getting In With an Unrealistic Expectation
It is good to dream big. It is also good to always approach any business undertaking with a positive spirit. It is not wise, however, to have an unrealistic expectation when getting into dropshipping. There is no way you can start making hundreds of thousands of dollars within few weeks of launching your dropshipping business. If you have such expectations, you may be discouraged in the early days and quit before your business blossoms.
Failing To Do the Necessary Research before Launching
Some beginner dropshippers make the mistake of rushing too quickly into the dropshipping world without conducting the necessary market research. Because of that, they won’t have the right information they need to make the best decisions in the early days. Lack of market research will definitely lead to poor decisions in the early days of dropshipping. In most instances, this normally results in business failure. This is the major reason most new entrants fail in dropshipping and related ecommerce businesses.
Niching Down Too Much
Choosing a niche is important, not just in dropshipping but in virtually all sorts of businesses and human endeavors. However, there should be a limit to niching for someone who is just launching a dropshipping business, especially when it comes to naming your business and branding your store. Do not start in a manner that will make it impossible or extremely difficult for you to change your product offering at a later date. Always leave a ream for restrategizing and introducing new products, if there is a need for that.
Selling One-Off Products
This is a major issue that affects most beginner dropshippers. It is among the biggest contributor to most young dropshipping businesses, and many never learn from it. One-off products are those products that a buyer will buy and use for a long time without needing a new one.
A good example of one-off products is a phone-cover. When one buys a phone cover, the intention is always to use it for several years or even months. Even when there is a need for a new phone case, it is unlikely that the buyer will remember to return to your shop. Selling one-off products put you in a tricky position where you will need to find new customers regularly. This is not always sustainable.
Choosing the Wrong Supplier
There are few business decisions that can be compared to picking a supplier for your dropshipping business. This is very important because it will determine the experience you will have, as well as the experience your customers will have when they buy the products you list.
Your suppliers determine a lot of things about your dropshipping business – they determine the quality of the product that is shipped, the shipping method, the shipping time, the shipping cost, as well as how products can be returned. They also determine the quality of customer support you will get, and that will always affect your customers.
Publishing Vague Policies
It is common for beginner dropshippers to use the content of other dropshipping websites to create their own. While there is nothing seriously wrong with this, publishing generic or vague policies can land you in trouble. The truth is that some of the policies you may find on the websites of established brands may not suit your business. There are return policies, for instance, that you may not be able to afford. Create your own policies that you fully understand and can honor.
Not Optimizing Your Store
Dropshiping is nothing without a great dropshipping website. The best dropshipping websites are fully optimized. Your dropshipping website needs to be fully optimized from day one. You also need to improve your website from time to time. The essence is not just to improve the aesthetic appeal but to make the experience of shopping easy for your customers.
Competing On Price
This is one of the worst mistakes inexperienced dropshippers make, and it can easily put one out of business. It is understandable that some people assume that lowering prices will get more people to buy from their stores, but how sustainable can this be. Never compete on price in the early days. Only experienced dropshippers who have established their brands and understand their business very well can know how to reduce prices without taking a major hit.
Dropshipping can be very tough in the early days. Making mistakes at this point can ruin your chances of succeeding. Knowing the commonest mistakes and avoiding them always will take you a step closer to achieving success. Be careful to avoid the mistakes discussed here and put in your best efforts to grow your dropshipping business.
Contact us today at Fulfillman to know more about our dropshipping business and the other services we provide. Our dedicated team will be available to speak with you and offer you the comprehensive guidance you need to start your dropshipping journey. We guarantee you quality and excellent services that give 100% client satisfaction.