Dropshipping is now accessible to E-businesses with a much smaller investment. A dropshipping business may be relatively easy to operate. Once you've set up your e-commerce, you choose your product, market it, and sell it. There are still costly mistakes that could hurt both customer satisfaction and revenue. Here are the top 5 mistakes you should avoid.
Top 1: Too Much Variety
Dropshipping seems like a good idea because it gives you more options, but you should focus on building within a niche instead of selling varieties. Choosing a niche like "exercise band" will make marketing and branding easier than choosing a broad category, like "fitness equipment.".
Choosing a niche lets you target specific customers and focus your marketing on reaching the right ones. Your business should be built around what interests you, don't try to be everything to everyone. The key to success is specialization.
Top 2: Overreliance on Suppliers
To be successful in dropshipping is to build trust simply because you won't be carrying the products or shipping them yourself, which means you'll depend on the supplier to fulfil orders accurately and quickly. The common problem you will face is that if the product sells well, the supplier will raise prices and cut your margin. Demand oversupply can also result in late shipments, back-ordered items, and eventually going out of business and not fulfilling orders.
Work with multiple suppliers when possible. Cover all the bases in the contract and agree to terms on shipping, pricing, and other potential issues before they happen.
Top 3: No Return Processes
A customer will inevitably return a product, no matter how great it is. It's easy to think that since you're just an intermediary, the return is the supplier's responsibility. The supplier handles returns, but your reputation is at stake. Your vendor's return policy should be clear and easy to follow, and you should monitor returns to ensure your customers get a refund.
Invest in a good returns system because the more effortless your return process is, the more likely your customers will keep shopping.
Final Thoughts
Listen to what people have to say.
As a dropshipper, you do not manufacture, warehouse, or ship your goods to customers. Since shippers are responsible for damaged or lost items, you often ignore customer feedback. Shipping problems are the supplier's fault, but you're the one your customers identify with, so their mistakes hurt you more than you think. Listen to customer feedback; if there's a problem, take the initiative and contact the supplier.
Get a better start with Zooloo. Our team is happy to assist you with your journey towards digital transformation. You will enjoy immense growth opportunities if you partner with the right service provider. Please contact us at sales@zooloo.asia.
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