Dropshipping mistakes to avoid as a beginner often go unforeseen. It comes with experience. If you’re just starting off with dropshipping, you’re likely to run into a lot of mistakes. Some of these mistakes could be the difference between the success and failure of your storefront!
I’ve been in this business for quite a while now. When I started, I made uncountable mistakes. But I eventually learned from them and grew.
I can tell you exactly what dropshipping mistakes to avoid. So stay tuned and know what mistakes could ruin your business!
5 Common Dropshipping Mistakes to Avoid As A Beginner
Have the Right Mindset for Dropshipping
If you’ve decided to start dropshipping, you must have seen some of the other ads on dropshipping claiming – you can bank a boat-load of cash quite easily with dropshipping.
Yeah, you can earn a lot of money with dropshipping but it’s not “quite easily.”
These ads make you believe there’s no need for any skills or knowledge to do dropshipping.
I hate to break it to you, but these are just simple marketing techniques. Dropshipping is only easy if you work hard and strive for improvement and optimization continuously!
So keep your mindset right. Being confident and working hard for success is the mindset you need rather than being lazy, just putting random products on your storefront and expecting impossible sales.
It’s Crucial to Select the Products That Sell
This is the most important dropshipping mistake to avoid as a beginner. Many drop shippers are naive to the fact that product selection does not matter. They end up choosing a product that’s unable to bring them any sales at all.
Take, for example, watches. Now people think it’s easy to sell watches, but it’s rather one of the hardest products to sell. The reason being – firstly, watches are not a thing a person needs, it is a leisure product and secondly, why would anyone buy a watch from a drop shipper if there are well-established brands selling watches for ages?
So just keep 2 things in mind:
- Find a product that people actually need
- Make sure the product is viral (preferably on Facebook) so that it already has a well-built audience
Keep Good Relations with Your Suppliers
Having good relationships with your suppliers will make your life easy and business flow smooth. Suppliers are the most important part of your business as they give you products to sell and also send them to your customers.
A good relationship with suppliers might also help crack more profitable deals and high-quality products supplied with them.
Never think of them as your junior in the hierarchy and treat them ill. They are your partners who can boost your sales to a great extent.
Lower Product Prices to Just Get Sales
One other dropshipping mistake to avoid as a beginner is to lower your price to beat your competition and ending up getting less to no profit at all.
Lowering prices too much won’t resonate with your buyers. Seeing the price of the product and comparing it with other dropshippers, a buyer will come to the conclusion that the product you sell is of a lower quality.
If you’re not an established massive brand, you can’t get away with 10X sales by lowering prices; it will be the exact opposite for sure.
Make Sure to Consider All Parameters While Profit Calculation
Profit calculation is a must dropshipping mistake to avoid. You can’t just calculate your profit by considering 1 or 2 factors. There are several factors that you will have to take into consideration.
Although this problem won’t bring you any harm, your expectations of profit will never be met at the end of the month, in case your calculations are dependent on just buying and selling costs.
Some of the factors that all beginners generally skip considering are:
- Shipping Cost
- FB ads cost
- Transaction fees
- Discounts given
- Shipping rates (worldwide)
- Tool usage
- Platform’s subscription costs
Is Dropshipping Profitable in 2021?
Yes, dropshipping is profitable more than ever. In this era of digitalization, the majority of people shop online. Apart from this, the risk factor in dropshipping is comparatively low compared to any other product selling business model.
By the way, some people are afraid of Coronavirus. So they don’t want to go to the store. Therefore, you have a good chance to bring the store to them.
The key here is having the right mindset. The business will take a lot of time, sweat, sacrifice, and dedication initially and afterward, but it will surely give you the result you deserve!
Why Dropshipping Is Bad for Some People?
Dropshipping can give some people a hard time, it’s true. Here’s why:
- The dropshipping business has low-profit margins, so you wanna get a lot of sales every month to be all-in-all profitable.
- The dropshipping market is highly competitive. You have to put your A-game right from the beginning, or you won’t get anything out of your business.
Dropshipping for some could be hard, and for others could be a walk in the park. But, it definitely will take hard work to expand and get more profits each year. It’s all about having the right perspective.
The 5 dropshipping mistakes to avoid mentioned are the most common beginner mistakes. So get rid of those, and you’re all set to the path of a profitable dropshipping business!