Common Mistakes to Avoid When First Starting Dropshipping
As a dropshipping agent with years of hands-on experience, I’ve seen many beginners make costly mistakes when first getting started in this business. From my perspective, avoiding pitfalls early on is crucial to building a successful dropshipping store. In this article, I want to share some hard-learned lessons that can help fellow ecommerce sellers, particularly those on Shopify, avoid stumbling out of the gates. My goal is to impart some practical wisdom so you can minimize growing pains and maximize profits.
Not Vetting Suppliers Thoroughly
Eager to get products listed quickly, many new dropshippers will partner with suppliers without doing proper due diligence. In my experience, this is incredibly risky. You must thoroughly research any potential partners before integrating them into your supply chain.
Here are key things I look at when vetting suppliers:
- Review their web presence. Do they have a professional looking website with full contact details, photos of facilities, detailed “About” section? Lack of an established online presence is a major red flag.
- Search for complaints. Enter “[Supplier Name] reviews” and “[Supplier Name] complaints” into Google to uncover any consistent negative feedback.
- Verify inventory. Confirm they have sufficient stock of the products you want to sell. Can they ship quickly from a nearby warehouse?
- Test quality. Have samples shipped to you before placing bulk orders to validate product quality and shipping time.
- Get references. Ask for 2-3 past client references and reach out to them.
Proper supplier vetting takes time but prevents so many issues down the road. Do not cut corners here – lay the strong foundation.
Limited Payment Options for Customers
Many first-time store owners only offer credit card payments. But studies show over 65% of shoppers will abandon their cart when only one payment option is available. To maximize conversions, providing flexible payment methods is essential:
- Credit cards – Accept all major ones like Visa, Mastercard, AMEX and Discover.
- PayPal – Many customers already have accounts and appreciate this option.
- Buy Now, Pay Later – Services like Affirm, Afterpay and Klarna are gaining popularity.
- Digital Wallets – Enable options like Apple Pay, Google Pay and PayPal wallet.
- Local Options – Use providers like Payoneer to unlock hundreds of local payment methods.
The more options you provide, the fewer customers you’ll lose. Just account for varying processing fees when planning margins. Adding just 2-3 key payment methods beyond credit cards can really boost conversions.
Poor Branding and Site Design
A cheap, generic looking brand and website immediately destroys buyer trust and screams amateur. Investing in quality design is critical for conveying professionalism and value. Unfortunately, many new merchants try to cut corners by designing their own logos and building basic websites. The results look sloppy and turn off customers.
Here are my tips for branding and design:
- Hire pros. Work with an experienced designer for branding assets. Hire a developer to build a custom, responsive site.
- Inspire trust. Show detailed product shots, include an “About Us” page, add customer testimonials.
- Leverage proven themes. Many dropshipping-optimized themes exist on platforms like Shopify.
- Obsess over speed. Optimize images, minimize HTTP requests, and use a CDN to ensure fast load times.
While quality design requires upfront investment, it pays off tremendously through increased perceived value and conversions over the long-term.
Failing to Focus on Targeted Products
Some beginners attempt to sell a wide variety of products right out the gate. Without a focused niche, you’ll be buried trying to compete. My advice is to launch with a narrow, targeted product range where you can develop expertise.
Tips for choosing a niche:
- Play to your interests. Focus on a category you’re passionate about.
- Validate demand. Use Google Trends and keyword research to identify high-demand niches.
- Assess competition. Target niche markets with demand but lower competition.
- Match suppliers. Ensure your suppliers are well-suited for the niche.
- Consider margins. Some niches offer products with higher markups.
A focused selection allows you to really tailor branding, marketing and fulfillment. Establishing your store as the expert in a particular niche builds trust.。
Not Providing Good Customer Service
With the added complexity of dropshipping, providing exceptional customer service is even more important. I’ve slipped up here myself early on. Some tips I’ve learned for delighting customers:
- Set realistic expectations. Be transparent about shipping times – don’t overpromise.
- Offer multiple contact options. At minimum provide email, phone and live chat support.
- Respond quickly. Set up alerts and staff accounts during all business hours to reply fast.
- Empower support staff. Allow reps to offer fixes like discounts without needing manager approval.
- Track orders. Have processes to proactively notify customers of any shipping issues.
- Monitor social media. Keep an eye out for complaints on social channels and address professionally.
- Apologize sincerely. When problems occur, apologize promptly and offer compensation like discounts.
Delighting customers requires investment in support staff, processes and tools. But it almost always pays off through increased loyalty and repeat business.
In Summary
Avoiding these common newbie pitfalls can set any dropshipping business up for smoother sailing. Take the time to vet suppliers, offer multiple payment options, invest in quality branding, focus your niche, and provide amazing customer service. While dropshipping has a low barrier to entry, to find success you must approach it as a serious business venture. Sidestepping these key mistakes that often trap beginners will help your store stand out from the pack and thrive.
I hope sharing the lessons I’ve learned the hard way helps fellow ecommerce sellers avoid similar growing pains. Despite some obstacles, dropshipping remains a fantastic business model that allows the financial and personal freedoms we all dream about. I wish everyone the best of luck and encourage you to reach out if you ever want to discuss strategies for dropshipping success. Let’s work together to build thriving businesses we’re proud of!
