Dropshipping is a business that has taken off in recent times, with an expected size of $196.78 billion in 2022. In fact, it could be an ideal option for a budding entrepreneur who is starting today. One of the things that makes it so lucrative is that you don’t require a lot of money to take your first step. This helps you test the waters without investing too much of your capital.
However, this sugar-coated and over-simplified information about dropshipping can put you in trouble. If you’re kick-starting your business, then make sure to avoid these dropshipping mistakes; otherwise, you might fail or plummet into pitfalls at the beginning of your journey.
Dropshipping Mistakes to Avoid
Given below are some of the common pitfalls you must avoid in order to succeed:
1. Having Sky High Expectations
Everyone wants to make money through business; that’s what businesses are for. However, expecting to make it big within a short period is unrealistic and naive. A report narrates that only 10% of dropshipping businesses succeed during their first month.
The dropshipping business takes time to bear fruit. If you don’t show patience, you might get disappointed and give up soon.
Even well-established drop shippers sometimes face failures and hindrances. As a novice in the industry, you should focus on learning as much about the craft as you can and be persistent.
2. Too Much Reliance on a Single Producer
Building a good working relationship with a manufacturer is advisable, but relying on only one manufacturer can be one of the costly dropshipping mistakes.
Sometimes a manufacturer decides not to work with you any longer. In such a scenario, not having a relationship with any other manufacturer can grind your whole business to a halt. Therefore, don’t put all your eggs in a single basket and diversify your pool of manufacturers.
3. Not Having Effective Customer Support
Not having effective and fast customer support can dent your business prospects severely. There’re multiple ways through which customers can contact you, so keep checking on every channel. Make sure to answer your customer queries as quickly as possible to retain their trust.
You can set up 24/7 customers on Facebook Messenger. Most businesses make the dropshipping mistake of not checking their emails regularly. Make sure you don’t do that and entertain your customers on every platform.
4. Choosing the Wrong Niche
Picking the wrong niche is one of the most common dropshipping mistakes committed by even successful businesses in the beginning. Make sure you are looking at all the details when picking your niche. Don’t go too broad, like selling clothing and electronics simultaneously. It will overwhelm you and your supply chain mechanisms.
5. Overpromising on Delivery Times
Pleasing your customers is commendable, but over-commitment to what you can’t do can become problematic for your business. The most common issue is overpromising on delivery times and then underdelivering.
It frustrates your customers and results in a loss of trust, which is sometimes permanent. Instead of overpromising, contact your manufacturers and ask them about approximate delivery times. Give the customers a range of delivery times in which you can deliver their products.
6. Having Vague Policies
New businesses make the dropshipping mistakes of copy-pasting policies from other established businesses. However, that could be a mistake, as those policies might not suit your business.
For instance, established businesses have a very liberal return policy, which you might not be able to afford or sustain. Similarly, mindlessly copy-pasting someone else’s policies might lead to a breach of state laws. Therefore, always craft your policy yourself after thorough research.
7. Lack of a Marketing Plan
You can’t expect customers to miraculously know about your business and start making purchases. To become successful, you need to have a solid marketing plan that convinces customers to trust you and buy your products.
SEO is highly useful but certainly not enough on its own. A robust marketing plan involves much more than SEO, such as paid advertising, email marketing, social media handles, and networking. Without having a holistic marketing plan that involves all of these, the chances of success remain slim.
8. Ignoring Holidays
Holidays are a wonderful opportunity to make big bucks. A lot of dropshippers regularly miss out on this opportunity, as laziness prevents them from planning. However, you shouldn’t let this opportunity go and must plan beforehand.
It isn’t as daunting as it sounds. All you’ve to do is to draw a chart marking the most important holidays of the year. Once you have planned it and a holiday is coming up, contact your supplier and inform them about your plans. Secure your orders beforehand, as they might be dealing with a huge influx of orders at peak times.
9. Skimping on Product Research
Building a successful drop shipping brand requires thorough product research. It involves multiple techniques to determine which products are suitable for your business and which ones are sought after by customers.
10. Undercutting Pricing
There is no doubt that lower pricing attracts customers. However, it works well mostly for established businesses only. If you’re new to the game and lower your prices often or too much, people might start doubting the quality of your products or your integrity.
So, it is alright to sell your products at a decent profit and establish your business first. Once you have earned enough customers, dropping prices won’t hit your wallet as hard because of higher sales.
We hope you understand the complexities of dropshipping mistakes after reading our guide. Some of the most common mistakes are relying too heavily on one supplier, not having effective communication channels with your customers, and not doing enough research.
If you’re looking to partner with a reliable dropshipping company for furniture, look no further than MyDepot. We have the well-established infrastructure and warehouse networks across the USA and have partnerships with leading manufacturers to bring you a hassle-free experience as a business owner.