5 Top Reasons Dropshippers Fail
Photo Credit: Photo by JESHOOTS.COM
Dropshipping can be a great business opportunity for many new and old entrepreneurs. We list a few things that make it extremely hard to work with and unpredictable.
- Choosing the wrong Niche
What are you selling to your customers? If you under price your products and there are no margins, then it becomes a bad niche. It is very hard to make money when your margins are low. Selling of product types that appeal to lower income households can make your store a bad niche because of the low margin you get. Usually this will lead to a customer service nightmare and a lot of returns. If you are not making a profit, these costs do rack up greatly.
- Choosing the bad suppliers
Suppliers refers to the companies you work with for products. When dropshipping from overseas
- Terrible store design and User experience
- Bad customer service (before and post-purchase)
- Bad tracking and analytics
**Bonus point: - Not retaining old customers