The reasons listed below apply both to those who have already started a dropshipping business and to those who are just learning the dropshipping business model. Truth be told, there are many reasons why businesses fail, but we’ll break down the 5 main ones.
1. Poor product analytics in the selection process
The most basic reason for failure is product analytics. No matter how great your website is or how cool your ads are, if no one wants your product, you’re not going to succeed in dropshipping. Proper merchandise selection and analytics is something you need to devote most of your time and attention to.
Pick unique merchandise that a person can’t buy in a nearby store. Sell merchandise that solves any problems, has a “wow” effect, and is of high quality at the same time. Don’t consider gray and black merchandise as you’re likely to encounter a problem with a Facebook account, payment, or the store itself being banned.
2. Incompetence in using marketing tools
You may have picked up a cool product that meets all the criteria of a “winning” product, but that’s not enough to start making money from it. Either way, you need to have a basic knowledge of marketing and advertising setup skills.
For a long time the main tool is Facebook Ads, so if you don’t have experience, learn basic advertising strategies and other people’s experiences or find a partner/employee who will be responsible for advertising. Also, don’t forget about your starting advertising budget – you won’t get far on $100, so prepare a sufficient amount for tests.
3. Working with unreliable vendors
The e-commerce field is constantly evolving and the competition in dropshipping is growing every day. If you are just starting to engage in dropshipping, you should work with Aliexpress.
There are a huge number of suppliers on this site, and in order to choose the most reliable, look at the rating, the number of orders for the goods that interest you. Read reviews, because they can judge not only the quality of goods but also how quickly the supplier sends goods, which is very important. Before you start working with the supplier, you can contact him, ask any questions you are interested in about the delivery time, the number of goods in stock, etc.
4. Wrong choice of payment system
The choice of the payment system strongly depends on how successful you will be in your business. In this case, the most affordable option is not the most reliable. Some variants lead to freezing of funds, cash breakdowns, and an increase in dissatisfied customers.
In such a situation, many beginners simply quit their business, although this outcome can be easily eliminated by connecting another dropshipping business payment system.
5. Unprofessional websites
By this, we mean sites that look like they were put together in a few hours. As a rule, they have such shoals as low-quality photos, repulsive color schemes, inappropriate fonts, typos, no product descriptions, pictures with Asian women, and much more.
One of the most important factors influencing the conversion rate of a store is the credibility of the website on the part of visitors. To gain it, you should at least consider the above mistakes. You can create your website with the help of our Ali2Woo dropshipping plugin.