Why Dropshipping is Bad for Your Business

Dropshipping is a business model that has become increasingly popular in recent years. It seems like a great way to get into the ecommerce world without having to invest a lot of money or time. However, there are several reasons why dropshipping is bad for your business. In this blog post, we will discuss the three main reasons why you should avoid dropshipping if you want to create a successful ecommerce store.

The first reason why dropshipping is bad for your business is that it’s very risky. You are essentially relying on a third party to provide you with products, and if they don’t hold up their end of the bargain, your business will suffer. For example, if your supplier runs out of stock, you are the one left with the unhappy customers. They don’t have to deal with it, and most could not care less.

Another reason why dropshipping is bad for your business is that you do not have control over the processes. Many dropshippers promise to do things like ship blind, which means they ship with your business name on the paperwork and package instead of theirs. Sometimes, they don’t actually do that and your customer receives a package with some weird name on the box. This can make your company look scammy and erodes the like, know, trust factor. I have seen it immediately take a business out because the customers do not trust the business they ordered from anymore and stop placing orders.

Some have poor quality items that you won’t know about until you hear back from your disappointed customers. Others don’t ship at regular intervals and you are left wondering when they will fulfill your orders. Some can take weeks, or even months, to ship out your packages.

Finally, dropshipping is bad for your business because it’s hard to scale without spending a lot of marketing dollars. Lots of people think dropshipping is an actual business that won’t take a lot of your time, but make you a lot of money. In reality, just turning on your website doesn’t mean traffic is going to come. You are going to spend the bulk of your profits on ads to drive traffic and buyers. After all your expenses are paid, you’ll be lucky if you have 20% of the sales left for your hard work.

Dropshipping is not a real business, it’s a nice side project that might make you a few extra bucks. Don’t be fooled by those “gurus” on social media that say they make millions of dollars a year. They are spending 80% or more of that on products and advertising.

Want to build a real business that actually makes you money? Check out ECom Academy at https://onlineboutiquecoaching.com/ecom.

What are your thoughts on dropshipping? Have you had any bad experiences with it? Let us know in the comments below!

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  1. As you say, the risk is higher than the normal channels, I had thought of adding it to my store, after reading your blog, I certainly won’t be.

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