Creating a dropshipping business is an endeavour that requires not much effort. Many eCommerce platforms have allowed anyone with little to no prior business experience to start their own online stores. Dropshipping is one of the leading eCommerce business models, with opportunities to generate reasonable profit.

Despite the prospect of fruitfulness that dropshipping can bring, there are many mistakes newcomers make when beginning or running their business. These range from wrong expectations to ineffective dropshipping practises.

This blog post will highlight 5 reasons why dropshipping businesses fail, and how to avoid these mistakes.

Wrong Expectations for your Dropshipping Business

Having wrong expectations about dropshipping business is a recipe for misfortune. It is mainly newcomers to the dropshipping business who venture into the business with expectations of making large profits very quickly. Because of this, the dropout rate of drop shipping businesses’ owners on platforms is high. This is in part due to the instant gratification culture pushed by society today. People expect to receive huge returns without much effort or ample time. As a result, this thinking is counter-productive to running a successful dropshipping business. You get out what you put in, and dropshipping is not a guaranteed overnight success.

Choosing Unpopular Products or ones in Low Demand

Another factor that leads to the downfall of many dropshipping businesses is the wrong choice of merchandise to sell. You cannot expect to make sales if your products are not actually in demand. Failing to properly research the demand and suitability of the products you sell is one of the biggest mistakes drop shipping businesses make. For instance, picking a product that has a great sentimental value for the seller but little wider popularity. Not considering these factors is going to be a regrettable decision down the line for your business.

Choosing the Wrong Supplier or your Dropshipping Business

This is self-explanatory. Failing to pick a quality supplier sets a bad precedent for the reputation. When having a dropshipping business, the supplier you choose is responsible for the storage and distribution of the product to the end-customer. Having a poor-quality supplier only incurs negative customer feedback and can lead to loss of sales and negatively impact business reputation in general.

Lack of Regular Activity and Perseverance When Running a Dropshipping Business

Running a business is not easy. It can be time-consuming and sometimes a daunting process, especially when your profit is not reaching your goals. Because of this common reality for many drop shippers, many decide to quit their business altogether.

Moreover, a lack of effort and diligence when running your business will not prove fruitful in the long-term. This ties into our first point about wrong expectations – if you aren’t making the effort to list your products on various platforms regularly, doing promotional activities consistently and so on you won’t reach your sales goals.

Poor Customer Service and Support

A quick way to collapse your business altogether Is to be negligent or have poor customer service. Customers are vital to the longevity of your dropshipping business, as they pay you before they actually see the product first-hand. Because of this, it is vital to have a good rapport as this reassures them that the trust they place in your ability to deliver quality goods on time is well-placed.

Ways To Avoid These Dropshipping Business Mistakes

Now that you are aware of the most common reasons for dropshipping business failure, we will look at ways to prevent them.

Concerning wrong expectations, the best way to combat this is to keep things in proper perspective. The thing you should primarily be focused on when beginning your dropshipping efforts is to establish a good reputation in the market. Having a good reputation amongst consumers and businesses displays integrity - something many consumers strongly value. 

Also, it helps to do more research into dropshipping before starting it as a business. Due to the many self-professed ‘gurus’ on the web, many newcomers are deceived into believing this business is a way to get rich quickly. 

Therefore it is essential to first establish a safe and reliable platform to begin dropshipping from. For example, NewNine is a great dropshipping platform to use, with a user-friendly interface.  
In addition, making the wrong decisions with the product you choose to sell is an issue that can also be avoided. You must do your due diligence and research the current market your product is a part of. For example, some products may hold great sentimental value for the seller, but still a balance must be found. Even though being interested in a product on an emotional level has strong value in business, the core of the matter boils down to one question: is the product actually in demand? 
Another approach dropshippers should consider is listing a wide variety of products first and letting the market show what actually sells. Dropshippers can then narrow down to a certain niche later on - when there is enough real-world proven data about which products are actually in demand (that is if finding a niche is what you wish to do; it is possible to also continue with a general store and never go down the route of niche).

Moreover, make sure to be consistent with your activity on 3rd party marketplaces . For example, NewNine’s managed packages include an Account Manager who lists items into all your selling platforms every single day. This in turn ensures that the marketplaces such as eBay boost your store’s visibility in front of their buyers as eBay is always looking to get more and more proactive and quality sellers. As a result, just because you are regularly and consistently active, you will get more sales than other, less active, sellers on the same platform.
Finally, consumers are more likely to purchase from brands that they feel are present in the market. But product marketing is solely down to your effort if you are serious about making sales. To this effect every NewNine package includes Post Magic - a social media management tool which allows you to post simultaneously across all your linked social media accounts and can help with the scheduling of social media postings.

Conclusion

It is vital as a dropshipping business that you are not only aware of the common mistakes made in the field, but also how to avoid them. Running a business is more than the prospect of profit - it requires effort, diligence and attention to detail. 
First of all, it is key that you have the right approach with what to realistically expect from starting a dropshipping business. Secondly, be intentional with your product research to ensure you are selling items that consumers actually want to buy. Also, don’t neglect communication and service etiquette when dealing with customers. These are the main factors which will determine the longevity of your dropshipping business.
And finally, being patient and active is vital to the success of any business and dropshipping is not an exception. 
×