Did you know that around 90% of dropshipping businesses fail?
Yes; you read it right.
Surveys show that 10% – 20% of the dropshipping businesses fail, with a most dying within the first month. It eventually leads to the big question, “Why do dropshippers fail?”
Dropshipping has incredible potential, but it’s not without its challenges. Let’s explore these challenges and turn your venture into a success story.
Today, we’re diving into a critical topic that could make or break your dropshipping business. This article shares the common pitfalls that cause many dropshippers to fail and how you can avoid them to ensure your success. These insights will help you understand how you can avoid falling into this black hole and establish a successful dropshipping business.
1. Choosing the Wrong Supplier
Suppliers are the backbone of dropshipping as dropshippers need to trust and rely on them to send high-quality products to the customers. The two most important characteristics of a good supplier for dropshipping include:
- Offering the same quality decided between the drophipper and supplier at the time of contract.
- The reliability of sending the orders on time without excessive delays.
Despite research and vigilance, sometimes, dropshippers make the mistake of selecting the wrong supplier. Bad-quality products, long shipping times, and unreliable service can frustrate your customers and tarnish your reputation quickly. In case there are any issues, your supplier might communicate the issues with you timely so you can update your store and shipping policy accordingly.
We’ll discuss how to identify and partner with reliable suppliers that align with your business values and customer expectations.
2. Inadequate Product and Niche Research
Inadequate product and niche research is another common issue among failed dropshipping businesses. Jumping into selling online without adequate research is a recipe for disaster. Selling items with no demand or in an oversaturated market won’t get you far, making it important to research the products and niche of interest properly before investing your hard-earned money.
While general product stores do not require in-depth research as you can sell almost everything of routine use, the competition is intense in the category and you might not get enough exposure and customers. On the other hand, focusing on a particular niche requires you to get to the bottom to understand if there’s adequate demand for the product. If you see only a few stores selling the product without many orders or reviews, it indicates a dying demand. When dealing in products that do not have enough demand, you’ll be selling something no one wants to buy.
The lack of market and product research might lead you to investing in an unpopular niche with less demand, restricting you from reaching your maximum potential.
3. Ignoring Customer Service
You must have heard of the phrase, “Customer is King,” and it’s truer than ever.
With increasing social media usage, it has become inevitable to provide unmatched customer service to your customers, or be ready to see negative reviews all over the internet. The process starts from the first message your potential customer sends you on social media. It is your first opportunity to convert the visitor into a customer by providing all the information they are looking for. If you fail to satisfy them at this point, you might lose an opportunity standing at the door.
The customer care does not end there. Post-delivery customer service is as important as pre-acquisition service. In case your customer reaches out to you regarding a delay in delivery or any issues in the product, ignoring their problems can leave a bad impression. The worst part is that customers do not hesitate to post on social media, making a small mistake detrimental to your business.
Remember: A happy customer is a repeat customer!
Get in touch with us and we can go over top-notch customer service practices for your business to help you build a loyal customer base and stand out from the competition.
4. Relying on Orthodox Methods
“My dad has been a businessman for the past forty years, and he still keeps track of everything manually.”
“Did your father have access to all these automation tools, and was he competing with businesses around the world?”
“No. He had a store in our locality with 2 more stores in the area.”
This is a common conversation we often have with our clients who have not explored automation yet. You might have seen the older generations do all tasks manually, but it’s not possible today. Dropshippers managing everything themselves have too much on their plate and get bogged down by manual tasks that could be automated.
Today, almost all ecommerce platforms offer integrations, making it incredibly easy to automate and improve your business. When you do not have to worry about updating the inventory after every sale or sending the order details to the vendor, you can focus on research, budgeting, marketing, and scaling your business.
5. Not Staying Committed and Patient
You might not have thought of seeing it here and instead a long list of technical ‘to-dos’ and ‘not to-dos’ in the article. However, staying committed and patient are two important elements of a successful business. It is often said that a business is not made by the products or services, but the person behind the business. If you’re unable to manage it properly or give it enough time, your dream of becoming a successful entrepreneur might not see the day. Giving up too soon is a common pitfall in business, and success in dropshipping requires persistence.
So, make sure to stay motivated and keep pushing in the right direction until you reach your goal. It might take a while, but if you’re determined and putting in the required effort to stand out of the crowd, believe in yourself, because we do; you’ll get there one day!
Are you ready to turn these insights into action and avoid the common pitfalls that trip up new dropshippers? Make sure to visit our website and check out our resources to help you get started on the right foot
