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The Disadvantages of dropshipping

The Disadvantages of dropshipping - full

The Disadvantages of dropshipping ?

Dropshipping is so attractive and easy that almost anyone can do it. The same advantage can also be seen as a disadvantage. Why? It means many other can be using the same dropshipper as you. Which also means, they can be selling what you are selling too. This causes a market saturated with competition. Since you are selling the same products, it also means you are now fighting for the same customers and same google adwords. Too much of this can cause price war and you may end up selling for a extreme low profits. Now lets exlore more disadvantages of dropshipping ..

Disadvantages of dropshipping: 2

The other disadvantage of dropshipping is that there is no proper information on the integrity of the dropshippers. Since there is no formal control on the dropshippers, how do you indentify a honest dropshipper who is willing to honor his words, deliver on time and most importantly, deliver quality products?

Disadvantages of dropshipping : 3

Even if you do your due diligence, you have no control on the manufacturing process. Which mean, your manufacturer can decide to scale down on the quality without informing you due to his cost cutting measures and this in turn can have an impact on your customers’ satisfaction level.

Disadvantages of dropshipping : 4

Also watch out for dropshippers with “No Refunds” policy. In the event a poor quality product was shipped to your customer who in turn returned it to you for a refund, what will you do with the defective product? If this happens too frequently, you are going to lose your profits and may even eat into your pockets.

To safeguard yourself, you may adopt “no refund policy” but over long term, probably you will lose more customers than making any. It is like your customers buying a product without warranty on on manufacturing defects. Why should they?

The Disadvantages of dropshipping - full

Disadvantages of dropshipping : 5

Your customers need to understand that the shipment time for a product can vary. If your dropshipper is from China, it is common to wait from 14-60 days for a product to arrive at your door. Obviously, there are other shipping plans that expediate the process but they can be costly. Unless your customers do not mind waiting out the long shipping, you are in a game.

Disadvantages of dropshipping : 6

Finally, even if your dropshipper allows you to return a defective product, you are responsible for the return shipping and the cost. This can be expensive and you will lose your hard earned money. As such, identify a dropshpper who is honest, affordable and delivery quality product is the challenge.

Let’s explore dropshipping further

These topics are written to give you better ideas on how you can successfully run a online ecommerce store taking advantage of droshipping facilities. In fact we started this topic with detailed explanations all about dropshipping. If you have not read this important topic, you may do so here.

Now that you know the advantages and disadvantages of dropshipping, let’s move on further. We shall now explore where you can find dropshippers for your business. Are you ready?

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2 comments

Nathan Leo 02/09/2018 at 12:36 PM

Thank you for the great articles. Now I see clearly the disadvantages of drop shipping . On weighing the pros and cons, I believe it still has plenty of opportunities.

Reply
Ze Alchemist 06/09/2018 at 5:56 PM

Hello Nathan,

Like every business, Dropshipping business has plenty of scope. We need to identify the right market mix based on pull and push factors coupled with our strengths. All the best.

Reply

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