Dropshipping has helped a lot of businesses run without having to keep inventory, have a warehouse to store goods, or even just figure out how to ship things.
Even though it’s cheap and works well, some people still wonder how useful this business model will be in 2022.
Not sure if you should use dropshipping to fill orders from your online store? Let’s look at why some people have had problems with this once-popular shipping and fulfillment system and why we think dropshipping is worth it.
Is dropshipping worth it? The famous Cons.
Dropshipping could be the way to simplify your online business’s logistics and lower its operating costs. The process itself is very easy. It starts when a customer buys something from your online store. The supplier will ship to the customer on behalf of the retailer once he gets the order details (online shop).
In 2022, dropshipping can still help online businesses in a lot of ways. But in the past few years, some problems have come up that we want to look at together:
Products with poor quality
Shipments taking too long
Less money left over
Payment gateways that don’t work
Lack of help after the sale
Unprofessional suppliers
So let’s talk about these problems, how to solve them, and why dropshipping is worth it.
Low quality products
One of the best things about dropshipping is that e-commerce owners don’t have to worry about getting their products to their customers.
The supplier will be the one who gets the products for your online store. Since any seller wants to give their customers good products, it is very important to choose a partner who can give you good products.
If you decide to work with a supplier whose products are hard to get, your business will suffer a lot and won’t last long. You will lose customers you already have and get a lot of complaints.
Slow shipping
One of the best things about using a dropshipping supplier should be that they ship quickly.
In theory, suppliers can fulfill orders much faster than a regular merchant can. When shipping times get longer, everyone has problems, including the supplier, the dropshipper, and the customer who bought the item.
Shipping times can be affected by a lot of different things. For example, the supplier could be out of stock, have a lot of items waiting to be shipped, or be disorganized and not have a good POS system. Important weather events could also cause shipments to be late.
In any case, the supplier will have to deal with angry dropshippers, who will then have to deal with angry customers, who will then buy the products they want from someone else.
Reduced margins
If you decide to dropship your products, you will need to remember that you will only buy one at a time.
So, it’s likely that you’ll have to pay B2C prices for your goods. Because suppliers won’t give you the same B2B prices they give to customers who want to buy over 1000 of the same product.
So, before you decide which product to sell, you’ll need to figure out if it will be worth it. To do this, you’ll need to add the price of the product to the cost of shipping and the cost of advertising that will bring customers to your site. It is very important to compare the prices of similar items sold by your competitors by doing a search online. This will help you figure out how much you can charge for your goods.
If you don’t think about all of these, costs will end up cutting into your profits, and if they are too high, you could lose a lot of money.
No Brand No Party
Personalizing products and packaging is related to the question of margins. Many dropshipping suppliers don’t let you ship products in custom packaging or under your own brand name, which can be a big downside.
Today, when advertising campaigns are getting more and more expensive, the key to building a business that will last is to build a brand. Dropshipping products with your logo is an easy and cheap way to build a brand, so you should look for suppliers who can do this for you.
Problems with payment gateways
In the past few years, dropshippers have sometimes had their PayPal or Stripe accounts shut down or had large amounts of money blocked for a while. In fact, when dropshipping, the quality of the products is now very important.
Customers will ask for returns or refunds if they get low-quality goods or goods that don’t match what was written about them on the product page. Many payment gateways will put your account on a “blacklist” if you have a lot of returns or refunds. This is because their main goal is to protect the end customer.
Lack of after-sales support
It is very important that, if you need it, your supplier gives you the help you need. Poor customer service can hurt your business a lot, so it’s important to make sure your supplier can help you handle problems with your customers’ orders.
Some dropshipping companies might not have good customer service, and others might take too long to answer your questions. If your supplier doesn’t offer good customer service, it could take weeks to solve problems. In that case, you would have a lot of angry customers.
Unprofessional Suppliers
If you think about it, many of the problems we talked about above are caused by the suppliers’ lack of professionalism.
Serious suppliers should be able to find high-quality goods at prices that are fair. It should also offer help to its customers (dropshippers) and be able to ship the products within the time frame that was agreed upon.
For all the reasons above, anyone who wants to use dropshipping as a way to find products needs to do a lot of research on suppliers.
You will need to make sure you get the best service possible, or else your business could be hurt by mistakes your provider makes.
Is it worth doing dropshipping on eBay? and Legal
Dropshipping has been made illegal for many dropshippers, or so they think. We want to put an end to a common misconception: buying products from one marketplace and selling them on another (like buying from AliExpress and selling on eBay) is not dropshipping. Instead, it’s a method of selling that is considered to be on the edge and is called arbitrage.
Dropshipping is allowed on eBay, but arbitrage or selling products you don’t own is not.
On his eBay site, he says this about dropshipping: “Drop shipping is when you buy products in stock from a supplier and work with them to send items directly to your buyers without ever touching them yourself.
Drop shipping is allowed on eBay. This is when you fill orders directly from a wholesaler. But you can’t put an item up for sale on eBay and then buy it from another store or marketplace that ships directly to your customer.
Is it worth doing dropshipping with Aliexpress? and Legal
Buying products from one marketplace and selling them on another, then buying products at B2C prices to sell them for a higher price is a gray area practice that is no longer so easy. In fact, when you buy things on Aliexpress:
shipments are out of your hands.
AliExpress only lets you work with one supplier, so you can’t control the quality of the products. You also can’t change the packaging or sell products with your logo on them, and you don’t have any kind of relationship with the supplier.
All of this makes it common for dropshippers who still use this kind of marketplace to run into all of the above problems. So it’s really important to keep doing this thing.
Dropshipping pays off if you find the right supplier
Is it worth it to drop ship? The answer will depend on the provider you choose, and we have the perfect one for you. A supplier who can help you avoid all of the problems we’ve already mentioned.
the only partner who can help you automate the whole process of fulfilling your dropshipping orders and give you quality products from China at the same time.