Top 6 reasons your dropshipping business isn't profitable

Top 6 reasons your dropshipping business isn't profitable

Many people think of getting into dropshipping, and some of them do but never make enough money to continue their ventures.  Well, just like any other online business, dropshipping isn't a "set and forget" type of business model.  You'll need to be actively managing orders, talking to customers, sending tracking codes, and much more.  It's not like affiliate marketing where you send someone through a link and hope they sign up; there's much more work involved.

Below are the top 6 reasons your dropshipping business likely isn't making any money.


You're buying from the wrong suppliers
Many people go online and search through Chinese manufacturers and think "this is great!" but what they don't know is the factory they're sourcing products from has a slow distribution line, and they don't make many products. 

Instead, go through a marketplace like AliExpress.com and find the perfect suppliers who already have positive reviews.  Their marketplace is similar to SEOclerks, but they sell physical products, and they're used to people dropshipping.  If you find a product and aren't sure if the seller will dropship for you, all you have to do is ask, and I'm sure they'll get back to you with "Yes!  We can dropship for you!" because they understand a sale is a sale, and they make more money if you're promoting their products lol.

You're too dependent on a single supplier
One problem I've noticed over the years is that a product manufacturer could run into problems, and that means if you solely rely on them for your inventory, then you're running into problems with them.  Instead, work with various suppliers within the same niche and be able to stay on top of your game even if a supplier runs into problems.

You're not watching your shipping costs
A big problem I've noticed in the past is when a supplier changes up their shipping costs, and instead of me paying $0.00 - $5.000 for shipping, I will be surprised with a $49.00 shipping fee.  This is normal since I'm shipping from overseas to the US, but it's quite a shock when I don't catch it, and my $4 profit turns into a -$45 sale.  Keep tabs on your supplier's shipping rates, and you can stay on top of your profits

You aren't offering tracking codes
A major thing people like to know is where their product is during the shipping process.  You will need to get tracking codes from the supplier as soon as the items are shipped and send them to the buyer.  This takes up a decent amount of time, and you will honestly be doing this more than managing your sales, so I hope you're ready for it lol.

Your returns system is something to laugh at
One of the biggest problems with dropshipping is the return process.  Your buyers will want to return the product to you, not to China, and if they figure out you're dropshipping from overseas, they may never buy from you again.  Most of the items in the US are made overseas, but not many people want to think about that, so if you can somehow streamline your returns process, so you get the product back to the supplier without breaking the bank, you'll be ready to make a decent amount of money through your store

You're not running multiple websites and stores
Rarely do people make a lot of money from one dropshipping store, and that's why you'll need to choose multiple niches, various products per niche, and run each store separately, so they become profitable on their own.  You can run all your ads from one account, but you can't sell everything from one website, so be sure you can multitask and run various stores in different niches to profit as much as possible.


Final thoughts,
Dropshipping isn't the easiest thing to do in the world, but it's enticing enough to pull plenty of newbies in.  The main draw is that you don't have to pay upfront for inventory, and all you have to worry about is generating sales.  If you can generate enough traffic, sales, and returning customers, then you have a successful formula that can be replicated in different niches for dropshipping


Thanks for reading

Tommy Carey
https://www.seoclerks.com/user/TommyCarey