The entry barrier for dropshipping is relatively low, and plenty of people look to dropshipping as a viable business option. With no inventory management and shipping hassle, the lure is quite tantalizing.
The dropshipping business model is perfect if you don’t have much money to start a fully retail business, and if done right, you wouldn’t need one. Now we make it sound effortless, and it is to some extent, but it’s not entirely peachy.
There are some common dropshipping mistakes that trip up new dropshippers often. These mistakes often go unnoticed and end up hurting the business. We here at DropshipUSA work with dropshippers to ensure they build a successful business.
Because of our proximity to the sector, we have listed down all the biggest mistakes dropshippers make, and we thought we should help you avoid them. So here are some dropshipping tips on the common dropshipping mistakes you should avoid, so let’s begin!
One of the biggest mistakes dropshippers make is that they start the business with unrealistic expectations that the business will immediately start bringing in big money. While we may make it sound easy to run an online store, especially without the hassle of inventory and shipping and it is to an extent.
However, getting your brand recognized and trusted is much harder than it sounds. It takes time, patience, effort, and intense dedication. So remember, you have to temper your expectations when starting the business.
Selling Trademarked Products
Often with the ease of entry into the dropship nation, people feel that selling things on the platform is easy. However, we find many dropshippers make the grave mistake of listing and selling products that need special permission and has been trademarked.
Selling a trademarked product might be the biggest mistake you can make as a dropshipper as it will not only harm your business but may even lead to drawn-out legal trouble. So when we talk to new dropshipping hopefuls, we usually add that they should start by selling white-label products as part of our dropshipping tips.
Listing A Lot Of Different Products
One of the most common dropshipping mistakes we come across is when a dropshipper lists various products without doing ample research. They see that some vendors sell a “hot-ticket” item, and they want to capitalize on the idea. However, listing a product requires a lot of research.
You have to keep in mind that if there is a product with much demand, then the competition for earning from it will be more challenging. Along with that, each product appeals to different customers, meaning you will have to re-think your entire marketing approach, and that means additional research hours and an extended marketing budget.
Besides these reasons, you will have to see if the product matches your brand identity. Remember, if you start selling pet foods suddenly in a t-shirt store, it will only confuse customers and hamper your bottom line.
Choosing The Wrong Niche
Now, you may not be someone who wants to sell it all on their website. Unlike those whom do you know that you have to select a single niche to focus on. However, there’s a chance you can be making the wrong decision.
One of the most common mistakes we come across are dropshippers who chose the wrong niche. Often they choose a niche that’s out of trend, and no one wants to buy those products or chooses a niche where the products aren’t suitable for online sales.
So you see, as a general dropshipping tip, we tell the new dropshippers we come across not to rush into the business and that they should take their time in doing proper market research. Ensure you avoid making one of the biggest mistakes in dropshipping and choose the right niche before you start selling.
Trusting A Single Supplier
Trusting a single supplier is one of the biggest mistakes you as a dropshipper can make. Remember that the supplier can quickly increase the prices, and that would mean you would have to do it as well, and that will hurt your rapport with your customer.
Your competitors might even try to undercut your prices even when that happens. The supplier might also run out of the product after the customer ordered the product. So you have to make sure you are working with multiple suppliers with signed contracts that lock in prices and order fulfillment procedures so that you have an uninterrupted dropshipping operation.
Not Developing A Relationship With Suppliers
Suppliers make up the most significant part of your dropshipping business. They are your partners. However, one of the most common mistakes dropshippers make is that they treat suppliers like an afterthought.
Remember, they are vital to your operation, and without them, you would be nowhere. So make sure you build a stable relationship with them. Having a good relationship with your suppliers will come in handy when you expand or negotiate prices for product stock.
Bad Product Pricing
While undercutting opponents is a fantastic marketing tool setting your prices too low is detrimental to your dropshipping operation. Remember, there is a market value for the product, and when you offer prices that are way too low, your audience will get the idea that your products are of low quality.
If you are not working in a niche where products are usually too pricey, then setting a low product price will become the biggest mistake you make when generating revenue. So make sure you set the price right.
Bad Customer Relations
Customers are the reason you have a store, so you have to make sure you build relationships. One of the most common mistakes drophsippers make is that they don’t put much effort into customer service. With dropshipping, there’s every chance that your customer may get damaged products.
Now, you may want to avoid or delay communication with your customers when they leave comments or reviews on their orders because ultimately, the blame goes to your vendor. However, that would be a fatal mistake on your part.
When faced with this sort of scenario, you should be proactive in communicating with your customers, showing them you care, and letting them know that you handle the problem with care.
Poor Site Structure
The modern dropshipping experience hinges on how intuitive your website design is. Your only way to sell is through your site, and the easy it is to use, the better the chances of you getting a sale. So site structure plays a vital part in making your dropshipping business a success.
Remember, there are plenty of other stores vying for your customer’s attention, so your website’s structure and make sure the customer journey is seamless. Work with professionals to build your website.
Take good care when selecting a theme, install the right plug-in, ensure the load speed is fast, and talk to the designer about optimizing the home to checkout journey. We here at DropshipUS specialize in building a perfectly optimized website that maximizes your selling potential. So you can talk to us if you are not satisfied with your dropshipping site.
You may think that generating much traffic when coming in is a great way to start your dropshipping business. However, you have to understand that SEO is a long-term game. The tactics used to generate a lot of traffic are hogwash, and it will not result in sales, nor will it contribute to long-term growth.
Usually, these short-term tactics are called black hat SEO tactics designed to lure in new businesses, and these strategies are filled with dubious methods that will only hurt your business.
Search engines will start to notice, and your dropshipping website may be penalized for these practices. So work with SEO specialists who can maximize your marketing budget for sustainable growth.
Work With Experts
So there you go. These are all the common dropshipping mistakes you should avoid. The entire purpose of this list is to make sure we contribute to your dropshipping operation in a meaningful way. These dropshipping tips on what not to do will help you fast track your growth and generate a lot of traffic to your site. Make sure you follow them correctly.
If you are confused about whether or not your website is perfect for your business, then feel free to get in touch with us. We here at DropshipUSA have Shopify dropshipping experts who can provide you with the secret sauce to success.
You can also send us your queries down in the comments below, or you can hit us up on our socials. Our team will be more than happy to help you out and answer everything you want to know. So that’s about it for now. We will come back with something new about the dropship nation soon. Until then, see ya!