Seasonsway.com was first the company to introduce dropshipping bussiness in India in 2012.This vision of Seasonsway was actual portrait to frame on 2012 by introducing drop ship module in E commerce online shopping website in India.
What are the top 10 drop shipping mistakes ?
Drop shipping is a convenient way to test products in the e-commerce marketplace without having to invest a lot of money on inventory, warehouse space, and staff to handle customers orders. It is also a great way to sell large, expensive, or hard to handle merchandise.
However, drop shipping is not an easy, no effort way to make a lot of money selling on the internet. It takes a lot of hard work to do your market research to select potential profitable products, hard work to check out your competition so you can price your items properly, hard work to develop unique and creative advertising and marketing methods to convince potential customers to buy from you, rather than from your competition.
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Mobile - TabletsAccessories, Powerbank...
Electronic Headphone, Pendrive...
MenSuiting and Shirting
WomenKurtas and Kurtis...
Intimate WearBra and Panties...
Home AppliancesMixer Juicer Grinder...
Winter CollectionThermal Wear...
KidsGirl / Boy
Sports and FitnessAccessoories
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Top 10 Drop shipping Mistakes
Many people choose Niche by reading some post or by some recommendations. This can create a problem sometime. If the owner doesn't know much about niche like have no interest. Then a store owner can find difficulties in finding a demanded products. It can create problem in product research.
Chasing the money
98% of the marketers out there get into this business and chase the money. I know, because I was one of them. I had a jewelry store and did very well with it, until I got burned out. I couldn't do it anymore and walked away from it. Learn form my mistakes, and go into a niche you have an interest in.
Confusing Website Structure
Store structure should be simple. So, if the consumer want to buy T-shirt then there should be a proper url structure that will list all T-shirt. If site structure is not good then this will lead to low conversion.
Design a store in such a way that even a layman can easily understand site design and can easily browse it. This can increase conversion rates.
You pay for the convenience of having someone else handle inventory and service, and often you pay a heavy premium for that convenience. Suppliers add a mark-up to the cost of packing materials, they will add a mark-up to shipping costs, and often they will mark-up their labor costs. After all, nothing is free
Your drop ship supplier must keep you informed about inventory levels and any price changes. If you are selling on Amazon, eBay, or other similar sales platforms and you cancel too many orders because of a back order situation from your supplier, your service ranking will be affected and if your metrics drop too low your selling account may be suspended or even cancelled
Drop shipping can be executed on a global scale. However, if you are buying and selling worldwide, you need to be sure you understand that each context you enter is not the same. So if you pick a local marketplace, understand their local clientele, price level, buying behaviour, payment terms, profit margins, level of after sales service.
Items are not always cheaper
People perceive DropShipping as a high margin and easy to do business. This is not always the case, due to the low barrier of entry, it is easier and easier for people to create a website, find some products and start advertising them!
Because the cost to start up was so low, some stores sell their products with very small margins, and sometimes will even accept a small loss just to get customers and revenue.
You can mitigate these problems by providing value above and beyond the physical product. For example providing an easy to navigate store, with simple to use tracking pages and good customer service will instantly give you an advantage over a website that has rock bottom prices, poor sales pages and awful customer services .
Bundling items doesn't always work
When creating your store, you will more than likely work with more than 10 different suppliers. One of my stores has over 100 different suppliers, and they each have their own warehouse, shipping companies and time frames.
This makes bundling customer orders together impossible. If your customer buys Item A, B and C, and they are all from different suppliers, you will firstly incur 3 different shipping charges, you will then also be given 3 different tracking numbers and lastly, you will have 3 different potential time frames for the items to arrive.
You can mitigate or at least make this issue smaller by using a fewer number of suppliers as well as explaining to customers beforehand that shipping in smaller quantities or separate packages can reduce tax.When creating your store, you will more than likely work with more than 10 different suppliers. One of my stores has over 100 different suppliers, and they each have their own warehouse, shipping companies and time frames.
Someone makes a mistake
DropShipping does add a new level of complexity when it comes to making mistakes.
Suppliers do and will make mistakes when it comes to orders, they might send out the wrong color, the wrong size, sometimes the completely wrong item and you are the face of that company. You are the one who has to sort out the issue by talking to both the supplier and the customer, you have to find a way to solve the problem and fix it for the customer.
By finding a good supplier you can reduce this risk, so look for ones who have lots of orders, high feedback ratings and have good store pages. Ones who are just starting out or don't have much in the way of feedback or reviews may cause you problems and sometimes can't handle the sheer volume of orders that you can be giving them (trust me, it's happened to me)