Categories
Dropshipping Basics Marketing

Top 10 Common Dropshipping Mistakes

Although dropshipping is one of the simplest business models to follow, the path to success is not always easy. Everyone makes mistakes along the way and they are not inevitable. Thankfully, you can reflect on the experiences of others and avoid repeating the same mistakes.

Many online entrepreneurs assume that dropshipping business is a low-risk business. However, like any other business, one poor decision can be costly. To minimize risk and avoid suffering pitfalls, below is a list of common dropshipping mistakes to learn from.

1. Picking the Wrong Niche

A niche is a specialized segment of the market for a particular kind of product or service. Several dropshippers made this mistake early on as they thought that it was best to sell trending items. They sell hot products from different categories which ended up marketing to a broad audience. You can’t be selling electronics and baby’s clothing at the same time (unless it’s a general store).

Pick a niche, stick to it, and test it. If you are selling kitchen accessories, sell complementary items such as baking tools rather than adding women’s jewelry to the mix.

2. Spending too much time choosing a product

You have to keep up with the market trend and use time wisely. A certain product may be selling now but in a few months, not. Spending too much time choosing the best product can put you in a state of analysis paralysis.

By being too indecisive and seeking more information, you are letting go of the days that you could have made a sale. Once you’ve done enough product research, it’s time to take action and commit to the product.

3. Relying on one Supplier

So you’ve found a great product in Aliexpress and contacted the supplier. Then you both agreed to the dropshipping agreement and then you leave your entire business to them. That can spell a lot of issues.

There’s a high tendency that suppliers can run out of stock, go out of business, or have some difficulties. This can lead to a loss of sales on your part. You will be dealing with a lot of cancelled orders and fulfilment issues and left scrambling to find a replacement supplier. To avoid this scenario, partner with multiple suppliers for your products when possible.

4. Bad Website Design

Think of a website as your primary salesperson online. What do your customers see when they visit your website? Since your website is your storefront on the internet, it should be properly structured to attract customers.

Shopify is one of the best e-commerce platforms that dropshippers use to create an online store. Imagine your customers landing on your website only to be annoyed by pop-ups, complicated design, and incomplete information. A simple and professional-looking website gives credibility and a good shopping experience.

5. No Marketing Plan

Don’t assume that once you have built your website, customers will come instantly. With hundreds and thousands of stores out there, you need to create ways to stand out from the competition. Social media is a powerful channel to reach a target audience.

You can set up Facebook and Instagram pages for your online store. Set up a budget for paid ads and run promotions and advertisements for your business. Make sure that your audience can find you not just on your website but other channels as well.

6. Pricing Problems

It is a bad idea to underprice and overprice your products. It is important to keep an eye on your competitor’s prices and keep your pricing competitive. Determine the right mark-up and profit margin. The pricing should be comfortable for the seller and the buyer. In this way, you won’t push customers away while ensuring you have enough profit.

7. Not caring about SEO.

There are no shortcuts to online success. Many dropshippers invest little time to optimize their stores. SEO may require massive time and effort, but it will pay off in the long run. The information you put on your website must be unique and relevant.

When writing product descriptions, try not to copy them from the manufacturer’s provided data. Instead, spend time writing engaging descriptions and include keywords that your customers are searching for.

8. Poor Customer Service

You may have a winning product but if your customer service is poor, your sales will go down. Are you responsive to your customer’s queries? In a saturated e-commerce market, providing good customer service can give you an edge.

Providing necessary information about a customer’s needs on time makes them feel that you care about them. That experience will keep your customers to keep coming to your store and patronizing your products. Customer referrals work better than paid ads.

9. Poor Branding

Branding your store is crucial to getting people to trust your brand and buy your products. Since you have competitors who are selling the same product as yours, adding branding to your packaging and labels can make a big difference.

This makes your customer remember your brand. They recognize you as a reputable seller who handles their products with care and attention. You can contact your supplier to arrange a private label and create your own brand that people will not forget.

10. Having Unrealistic Expectation

Dropshipping is not a “get rich quick” scheme. If you are not patient, it is not for you. Understand that dropshipping is a long game and it requires a lot of learning experience. Some people who failed are the ones who just set up their website and wait for something to happen. They made a few sales and then quit the next month.

Categories
Dropshipping Basics Product Research

How to Manage Dropshipping from Multiple Suppliers

Dropshipping from a single supplier may seem good for beginners but if you want to expand your products, you might need multiple suppliers. However, the more suppliers you have, the more logistics problems you can encounter. It has its pros and cons but with a proper understanding of the dropshipping process, you can eliminate potential risks and headaches.

Having multiple suppliers can be challenging. You have to build relationships with many people, coordinate with inventory, order data, and navigate tracking to ensure a successful online store.

Here are the best ways to manage your online store when dealing with multiple suppliers.

1. Choose the Right Supplier

This initial step is the most crucial if you want to manage your online store seamlessly. Before you decide to stock the item, vet your suppliers based on their credibility and reputation.

There are two ideal scenarios here:

1. You already have a main supplier but need a plan B or backup suppliers in case there are availability issues.

2. You are connecting with other suppliers that complement your products.

Do your homework and check the reviews about the supplier. Speak to them or the sales representative about their availability and fulfilment deadlines. Make sure that your suppliers have at least a 95% positive feedback rating. They should also be responsive and have excellent customer service.

Bonus tip:

Try to pick a supplier that offers a wide range of products that you want to sell instead of finding suppliers to each of your problems. This will minimize your headaches in the future.

Drophippo works directly with manufacturers so you can save more money and focus on the important part of your business. You don’t have to worry about sourcing from China because they already did the heavy lifting for you – reliable suppliers, best prices, and excellent customer service.

2. Streamlining Communication Process

Once you have picked the right suppliers, it’s time to arrange a communication process with them. What communication channels will work best for both of you? Do you need 24/7 support if you have some questions and concerns?

With strong customer service from the supplier, you can feel confident about your orders and with handling any situation that may arise.

Drophippo, a leading product sourcing company offers multi-lingual support and fantastic customer service. They use an AI tracking system that monitors your order 24/7 and provides you with transparent updates.

3. SKU Differentiation

One common mistake that online sellers make is poor SKU management. Though your multiple suppliers are supplying you with the same products, it is vital to have a unique SKU.

This will allow you accurately track your orders, and not wonder which supplier delivered the product. With SKU differentiation, you can easily identify which suppliers hold the inventory and which supplier have you sent the product order to.

Tip:

Let’s assume that you are selling air humidifiers and you have two suppliers: Kevin and Stef. You can simply add the supplier’s name as a prefix to differentiate the two and avoid confusion.

Kevin’s air humidifier: KSKU456

Stef’s air humidifier: SSKU456

Create an excel sheet for each of your suppliers and import product data. Unique SKUs will also allow you to see what product from a specific supplier sells the most.

4. Data Synchronization

In addition to SKU management, you also need to deal with inventory, prices, availability, and order status. With a growing number of dropship suppliers, expect that your product orders and product lists will also grow.

Without the right tools and apps, it will be difficult to manage it all. This is why it’s essential to synchronize the data from multiple suppliers instead of dealing with them manually one by one. Data management platforms and automation are the best ways to go.

Drophippo has an app that provides you with a detailed dashboard that allows you to see orders, prices, tracking, profits, and all sorts of important data. The data connects to your store automatically; enabling order processing, fulfillment, billing, checkout, and payment without a sweat.

Categories
Dropshipping Basics

Is Dropshipping Profitable in 2022?

If you are an entrepreneur who wants to venture into an online business, you probably thought of dropshipping. As you try to weigh the pros and cons, you may ask yourself, “Is dropshipping worth it this year 2022?” Well, the short answer is YES. Dropshipping is not dead – it is continuously growing! 

Dropshipping is a business model that suits small entrepreneurs who do not have enough finances to invest. This allows their store to thrive without spending money on inventories. All they need is a functional website, a partnership with a reliable supplier, and a marketing strategy. 

The Future is Online

Nowadays, people can shop online from the comfort of their sofa. Thanks to technology and e-commerce platforms, consumers can buy and sell products without the commute and hassles.

According to Statista, 87% of UK consumers make purchases online and 34.5% of total retail sales are accounted for internet sales. This means that the online shopping trend is going up. Consumers find it more convenient to shop online because it can save time and effort and ensure their health and safety (especially in times of pandemic).

Is Dropshipping Saturated?

“I want to start dropshipping but many are now doing it.” Well, almost all businesses have competition. The recipe for success is not just about being unique but being able to manage and grow your business the right way.

Dropshipping is an easy business model that one can easily start with. But here is the truth – not because it is easy, success is also easy. 80% of dropshippers fail. The reason is not about dropshipping being saturated but lazy entrepreneurs who don’t put any effort into their dropshipping store.

Is Dropshipping worth it?

The richest man in the world is from online shopping, Jeff Bezos – founder of Amazon. Dropshipping will remain popular and profitable in 2022 and onwards. The e-commerce market is growing and there is no sign of it slowing down.

Physical stores and small retailers are seeing a 30% increase in sales through smartphones. People are becoming comfortable making purchases online and this growth is a good indicator for entrepreneurs to start an online shop. 

A dropshipping business offers you a ton of benefits. You can do it full-time or as a side hustle. With low investment and nothing to worry about inventory, you can easily adapt to the market trend. All you need is to research winning products and keep an eye on what is trending in your chosen niche. 

Another advantage of dropshipping is you can manage your online store anywhere in the world. It gives you full control in running your business. You can also reach a wider audience through social media and interact with your customers. With solid marketing and creative advertising, you can increase sales and bring in more profits.

Is Dropshipping Scalable?

Like any other business, dropshipping demands patience, planning, and determination. Once you successfully build your online reputation and get consistent traffic and sales, you can expand your product and customer service. 

Dropshipping is scalable. Unlike traditional business models where you have to buy more stocks and hire more people for the increased workload, dropshipping can be automated. With the use of CRM integrations and apps, you can streamline the work process smoothly. 

You can just hire a virtual assistant who will help you with administrative support and customer service as well as a social media person to help with advertising. 

Conclusion

Dropshipping will continue to rise in the next 5-10 years. It is easy to set up, low risk, and profitable. As most businesses are shifting to the digital platform, it’s time to make a jump to e-commerce. Do your research, study the market, find the right supplier, choose the best e-commerce platform, and set up your store! If you want a business with low capital, dropshipping is the perfect option.