Drop shipping is a convenient way to test products in the e-commerce marketplace without having to invest a lot of money on inventory, warehouse space, and staff to handle customers orders. It is also a great way to sell large, expensive, or hard to handle merchandise.
However, drop shipping is not an easy, no-effort way to make a lot of money selling on the internet. It takes a lot of hard work to do your market research to select potentially profitable products, hard work to check out your competition so you can price your items properly, hard work to develop unique and creative advertising and marketing methods to convince potential customers to buy from you, rather than from your competition.
- The #1 problem is when potential new sellers believe the advertising claims that drop shipping as an easy, no effort, way to make a lot of money by selling online.
- The # 2 problem is when potential sellers believe drop shipping is a passive business, easy to do with no effort at all.
- Failure to market your website to drive traffic to your items.
- Expecting potential customers to buy from you, even though your price, advertising, and pictures are exactly the same as everyone else’s. Selecting your products based on popularity without paying attention to the fact that your competition is already selling the same items is a fatal flaw. Amazon does not care if it has ten thousand sellers offering the same item. They only care that at least one seller makes the sale so they collect the Amazon selling fee.
- Not knowing or using research and data about your competition. Not doing necessary research about your customers and your market.
- Putting too many unrelated items on your website and expecting your customers to trust you.
- Expecting to make a lot of money drop shipping, even though you know that your suppliers add high fees for servicing your account.
- Failure to monitor your drop shipper’s shipping performance.
- Failure to monitor your drop shipper’s inventory level and price changes.
- Not providing rapid customer service responses to your customers.