Disadvantages and possible difficulties of dropshipping

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Dropshipping is not a stress-free, effortless way to make money. This sales model certainly has serious advantages, but it also has some inherent difficulties. When starting your own business, be prepared for this.

There is good news: if you plan and calculate everything carefully, many technical problems can be solved and do not become an obstacle to the promotion of the enterprise.

Here are the main difficulties and gmx email list disadvantages of dropshipping (whether wholesale or retail):

The Importance of Trust in Business

Since you cannot control whether the order is delivered to the customer, set purchase prices, influence the availability or absence of goods and their quality (and the customer will make claims for defective products to you), you are forced to trust the supplier.

No intermediary has all the information on stock balances that a supplier has. In order not to deceive end customers even unwittingly, request access to stock balance databases from partners and personally track the movement of inventory at each supplier with whom you cooperate under the dropshipping scheme.

The required product may not be in stock.

A sudden absence of a product that is marked as available on the website undermines customer confidence. Try to set up notifications about the product status (in stock, on order, etc.).

Low barrier to entry

This is the other side of the coin: because of the ease of entry into this market niche, thousands of intermediaries have flooded in, with whom you will have to compete. Winning this race can cost a lot in terms of advertising budget and effort. When choosing advertising channels, carefully study the competitive situation in your niche, so as not to waste money.

Lots of work

You won’t have to sit idle: you will have to create many unique product descriptions, sometimes replace or edit photos, and take measures to optimize the site for SEO. If, for example, you have chosen women's clothing or another highly competitive market niche for dropshipping, you will need the services of a designer and UX specialist to make the online store convenient and memorable.

Specifics of income generation

The profit of a dropshipper is the difference between the purchase price and the cost that the end customer pays for the product. In order to set a good markup and stay within the price that is affordable for the consumer, it is advisable to choose products based on their marginality.

Risks to reputation

Unfortunately, sometimes you come across unscrupulous suppliers. The client addresses all complaints and indignations about low-quality goods, errors during delivery and order assembly to the seller. To prevent other people's mistakes from ruining the reputation of your dropshipping business, cooperate with several suppliers in parallel, for example, in addition to women's clothing, you can also do children's clothing.