Dropshipping is probably the most disruptive retail model in recent history and gives virtually anyone with a laptop and an internet connection the opportunity to own their own storefront and get a global clientele. It can be promising to those who know what they’re doing and are coming in with a sound plan, but it can also turn into a nightmare for those who come in with wild expectations and no experience. Let’s take a look at some of the things you should never do when starting a dropshipping business.
Using Hunches to Pick a Niche
Knowing how to find a profitable niche is probably the most important thing when you’re dropshipping, and those who can consistently find great niches and execute them will always be at an advantage. One of the biggest mistakes you can make is picking niches because they look profitable or popular. In reality, you should be looking at things like competition vs demand, the cost for advertising, shipping, returns, margins, etc. Only once you know this will you be able to see if a niche is actually profitable or attainable for you.
Another mistake in this business is being impatient. Dropshipping is a trial and error game. You have to try different niches, marketing methods, web designs, etc. Chances are you won’t get it right with your first sites, but you can learn from your mistakes and fine-tune your efforts until you find a winner.
Picking the Wrong Platform
You also want to pick the right platform and make sure that you master it when starting a dropshipping business. While there are tons you can use for starting a website, if you have limited experience, choose a checkout process that does not require a lot of web development. Consider all the options at your disposal and pick the one that fits you the best based on skills and what you look for in a platform.
Not Having Starting Capital
Yes, dropshipping is one of the business models with the lowest barrier to entry you’ll ever find. And yes, you can start a dropshipping business on a penny; but you’ll be putting yourself in a tough position. A better choice would be to accumulate some starting capital. Just $300 to $500 could be enough for you to pay for ads. If you can’t come up with that, then we suggest you wait and save up.
Not Preparing for Logistics
You might think that getting orders is the tough part but wait until you have to deal with the back end. You’ll have to deal with dissatisfied clients, returns, people wanting to follow up on orders, questions from customers, and more. Sometimes, some fail because they picked high return niches and weren’t prepared thoroughly. So, make sure that you have all the tools and mechanisms in place, and know you’ll be running a real business.
Dropshipping can be a great way to make money, but it’s not for everybody. However, by having the right expectations and being prepared, you’ll have a much greater chance of making it.