If you’re just getting started with dropshipping, it’s imperative to start right. Many dropshippers fail, and it’s generally because they make very avoidable mistakes during the startup of their business.
Let’s take a look at what we consider to be the top 3 mistakes a dropshipper can make.
Mistake #1: Shipping times
Many popular dropshipping companies use what’s called an “E-Packet” to ship products. EPacket is Hong Kong’s fastest delivery method for international shipping. Many dropshippers find shipping via EPacket to be the most lucrative option primarily because it’s the cheapest option and won’t cut into your profit margins.
The mistake many dropshippers make by using this method of shipping is not stating realistic shipping times on their website. This is the case especially for worldwide shipping, which has a different timeframe of shipment depending on the country. For example shipping to the UK can sometimes take longer than 30 days.
If it’s the first time a customer is buying something from your new store and your brand is not yet trusted by the community, and you are not realistically stating your shipping times, your customer is going to get scared and potentially reverse the charge. Even worse, they may never return to your store again or give you another shot.
Avoid this simply by stating clearly on your product checkout page what the realistic shipping time will be. It’s also a good idea to remind them of the shipping timeframe in their confirmation email.
Mistake #2 : Too many products
Dropshippers fall in love with the number of products they can sell. Afterall, there are so many awesome products that can be purchased, you can become the next Amazon! The more products the better right? Wrong! Let’s face it, Amazon and eBay are extremely tough to compete with. They have some of the cheapest prices around and can ship to you in just two days. Why would a customer come to your site to purchase from you when they won’t receive their product for a couple of weeks because it’s being shipped via ePacket?
The answer to this is simple. It’s because you should have something on your site that is unique and cannot be found on Amazon. Find a selection of niche products that Amazon does not offer and something that customers will likely come back to purchase. This will help your company stand out uniquely from the other shops and give your customers a reason to come back directly to you.
Mistake #3 : Running Ads with no Data
Running ads is not a bad thing, but running ads blindly is. You should know who you’re targeting, what age group is most interested in your product, what countries are most likely to purchase from you, the relevancy of your product to the consumer and more. Many droppshippers setup their site, run ads, get no sales and wonder why.
Try collecting data first and then target ads based on the data collected. If you aren’t getting enough organic traffic to manage this, it’s okay to run some very small ($5-$10) ads to start collecting that data. Don’t go all in on your first ad. You will likely be disappointed.
Dropshipping can be a very fun and rewarding side or full time business. Be careful of making the same mistakes others have made in the past. It’s important to set expectations, have a clear and concise product line, and manage your marketing well.
Please comment and let us know what some of the struggles you had were when you started your dropshipping business!