Ecommerce is growing at a rapid pace. Every entrepreneur and business is trying to use digital salesmanship to make some money, one way or another. Some ecommerce strategies will give you better results than others. Dropshipping is one of the tactics that are less popular than they were some time back. This can be attributed to new constraints that have rendered it less profitable.
2020 is a confusing and disruptive year. It is a good time to ask whether dropshipping is still a profitable venture or not.
Customers Need to Be a Priority
Dropshipping, like any other business venture, will only succeed if you make your customers a top priority. Many newbies think that dropshipping is an effective way of making easy and quick money. On the contrary, it is a complicated process and you have to be constantly on your toes. While your work is made easier because you do not have to stock many goods, this creates a new set of challenges (think ensuring customers’ satisfaction and issuing refunds).
Many people who dived into dropshipping thinking that is a quick way to attain business success realized that they were mistaken and they suffered the consequences. There are good ecommerce veterans that will truthfully tell you what mistakes they made while starting out. However, some beginners will still ignore the advice and fall into the same pit. A good number of them fail to understand the essentials needed to make this venture successful.
Some of the obstacles you will face involve quality control and high shipping costs.
Lack of Accountability in Dropshipping
Contrary to popular belief, dropshipping is not quite secure. Neither you nor your customers will be interacting with the supplier face to face and this makes it easy for you to get scammed. A supplier can also deliver low quality goods to your customers causing dissatisfaction and irritation.
Due to this, you have to get dropshipping training first and look for trustworthy suppliers. They are not easy to find and they can be expensive too. However, a supplier can be the reason your business fails or succeeds.
Do not let suppliers lure you with lower prices. Do your due diligence and make sure they can be trusted first. It is better to have happy repeat customers than one-time angry ones.
The dropshipping model requires extra homework on your end. You or your workers should be constantly researching to find new engagement models, products and suppliers.
There are aspects of dropshipping that you can only prepare yourself for. Quality control, for instance, is out of your hands. You will just have to come up with a way to make sure that your customers get what they pay for. Efficient customer care is also crucial.
Is It Worth the Effort?
Although the challenges are many, some entrepreneurs still try out dropshipping because the startup costs are low. If you are keen enough, do your research and master the industry, you will be immensely successful.