Pros & Cons of Dropshipping
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.
PROS:
- Low Startup Cost
- No Inventory to Manage
- Passive Income
CONS:
1. Wrong Dropshipping Niche – You should invest your time in niche research if you want to achieve your long-term. Spend more time to identify your niche.
2. Choice of Bad Products – Although you may have chosen the right niche until and unless there is no success or growth in your. If you want your store to be unique then sell products something unique which leads to a wow factor. To improve customer return rate and to win their hearts provide services that satisfy their requirements.
3. Quality of Shop – Your shop needs to look professional if it has poor images or doesn’t look attractive customers may think of it as a fraud Shopify store. Hence reduce sales.
4. Poor Customer Service – People are used to speedy service these days and they will not buy or come back to your store if the level of customer support is not present. Don’t wait for 2-3 days to reply to customers.
5. Fast Shipping – It often happens with your suppliers that sometimes they are so overloaded orders get skipped or missed. Customers will only be happy to wait for product which are cheaper or products which are not available from their local store.
6. Marketing – For the products to sell you have to drive the visitors to your store. For your visitors to convert into valuable customers by advertising your products on Social Media.
These are just a few reason why so many drop shipper fail however these are just my experiences with dropshipping. If you have the time and resources nothing is impossible to achieve and you should by all means give it a try if you are thinking of dropshipping.
