5 Reasons Why Dropshipping Business Fails

Let’s be honest: 90% of dropshipping companies collapse within the first month of service. This means that everything you’ve read or seen on the Internet might not be real. Even if you followed some “perfect advice” from a guru, you failed miserably in your attempt to start a dropshipping venture. Why is this so? And their advice isn’t necessarily right.

Before you invest all of your resources in a new dropshipping business, consider why only 10% of companies succeed in dropshipping. Are they the masters of internet selling? Are they superhumans capable of doing anything? Is there a mystical weapon that no one knows about?

These questions all have the same answer: NO! They’re all regular people like you.

But what distinguishes them is that they are aware of the mistakes that can lead to disappointment and work hard to stop them from the outset. They also know which is the right platform for dropshipping.

This is something you should do as well.

Today, we’ll go into the top ten reasons why most dropshippers miss. Read them thoroughly to develop a foolproof plan for your dropshipping company.

So without any further ado, let’s get started.

Five reasons why dropshipping business fails

Wrong niche

If you pick the wrong market, there’s a good chance your company will never get off the ground. As hundreds of thousands of people are stepping into the eCommerce market on a regular basis, the competition is becoming more fierce.

Furthermore, you are dealing not only with other dropshippers, but also with shopping behemoths such as Walmart and Amazon. As a result, be cautious when deciding to open a general store that sells trendy items such as clothes.

It is important to choose a niche. As a result, before venturing into marketing, carefully study your desired niche. Examine actual and expected dropshipping retail patterns, and determine how many retailers now sell those products.

Be certain that your chosen niche should have low competition and high search volume. It may take a few weeks or a couple of months  to find the perfect niche, but it is worthwhile. You will have a large number of future customers, which will make the web marketing activities much smoother in the long run.

Unreliable suppliers

Most of the people who are new in this dropshipping business believe, buying products from Chinese suppliers is a great idea, but is it actually a great idea?

Remember that the retailer sells goods at wholesale prices and is responsible for picking, packaging, and delivering orders to consumers. This method can go wrong for a variety of reasons, including long delivery periods, broken tracking numbers, poor overall product quality, and little help for refunds and returns.

And if the provider is doing anything possible, problems can occur. For example, you will be told that a product is in stock, but by the time you place your order, it has sold out.

Since you have no influence over this aspect of your market, the risk for an issue is high. Worse, working with an untrustworthy supplier will ruin your dropshipping company.

Finding a supplier who really cares about your future, let alone establishing relationships with them, would be challenging. Dropshippers often rely on platforms like AliExpress to place orders without ever approaching the vendors.

If you really want your dropshipping company to thrive, you must communicate with your suppliers by phone, Skype, email, or in person. Check out  their working style, strategies, terms and agreements, so you can work with them properly.

Unoptimized and unattractive store design

As we all know very well, dropshipping stores are no different from traditional eCommerce stores. They must also be visually appealing and have an enhanced user experience. Unfortunately, many dropshipping shop owners take no action to address these issues.

Some stores aren’t well built for mobile in terms of presentation. They have limited navigation tools and a frustrating user interface, making it difficult for customers to find items. Customers would not trust your brand if your store is disorganised.

When it comes to SEO, many dropshippers devote very little time and money to optimising their stores.

Why is this so? Because a dropshipping store can sell a wide range of products, ranking for a single keyword on Google for, say, a tank top is extremely difficult.

That being said, if you optimise all of your website content as well as your product pages will appear on the first Google result pages. In other words, the goods can be shown to consumers who are looking for the products you offer.

Optimally, you must begin with optimization before launching your store. Determine the most important keyword options and tailor the web content to them.

High prices

It’s enticing to set a high price in order to get the most demand for the goods. After all, every dropshipper wants to earn as much revenue as they can, right?

Surprisingly, the most effective way to maximise sales income is NOT to overprice the items! This is due to the fact that a high selling price can lead shoppers to lose confidence when they see your product.

Usually most shoppers will often look for the same commodity in several stores in order to compare prices. They’ve realised that while most retailers sell the same things, they can quickly get cheaper discounts elsewhere.

They can abandon your shop without hesitation if they realise they can buy anything at a cheaper price at another store.

So, if you’d like to set high prices on your goods, think twice. This isn’t necessarily a good way to keep your business stable.

Ineffective marketing strategies

Your dropshipping shop is brand new. Customers are unfamiliar with the name of your shop, and your items can also be found on a variety of other websites.

Furthermore, as you deliver a diverse variety of items for purchase, it is difficult to narrow down your potential buyers. As a result, if you don’t have a solid marketing plan in place, your dropshipping company is doomed to fail.

However, don’t conceive of a good content campaign as just a few Instagram or Facebook updates. You must concentrate on what really works and produces positive results. Consider Facebook marketing. Instead of only sharing photos or text, use Facebook video advertisements to increase interest and improve conversion rate of an eCommerce business.

Set aside time to respond to prospective customers’ feedback and assess the effectiveness of the ads.

Once you’ve decided on a niche, you’ll need to devote a significant amount of time and money to marketing your shop. People can’t afford something they aren’t aware of.

Conclusion

It is correct that 90% of dropshipping companies crash. It’s also true some people had a lot of success. If you wish to escape failure, you must immediately develop your marketing plan. If you’ve completed this, you’ll undoubtedly be able to excel in dropshipping.