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5 Common Dropshipping Mistakes to Avoid

Many people got into the Dropshipping business as no large investment is required to enter this business. For this reason, it attracts many people.  

In the Dropshipping business model, the manufacturer or supplier manages the inventory and not the business owner. In a situation like this, several online business owners become complacent and eventually take a loss.

Even though several factors play a pivotal role in the success or failure of the online business, many business owners make the following five most common mistakes.

Having unrealistic expectations

Due to the low entry barrier to enter the Dropshipping business, many people think it is effortless to start and manage as there is no such obligation to handle inventory and order fulfillment. Time is another factor as many may believe that they will easily manage this business by giving a small amount of their time, which is incorrect.

If you think that you will succeed in the competitive dropshipping market, then you are mistaken. To succeed in this business, you need to be persistent, hardworking, and require much patience. You should not expect to have a profitable business within a matter of days or weeks.

Selling Trademark products

When people hear about dropshipping and know how easy it is to start this form of business, they are intrigued to sell as many products as possible to make some easy money. However, selling all sorts of products may get you in trouble because there is a good chance that some of these items are trademarked products. Selling trademark items without prior approval or permission from their manufacturers will result in lawsuits. In such a case, your business will not only take a hit, but in some scenarios, you are personally held responsible due to infringement laws in some states.

To avoid such a hassle, you should concentrate on generic products, so you don't get into trouble. You can also try white-label products as they are not trademarked, and their manufacturers allow rebranding them. You can put your brand name on white-label products, and if you have the right supplier, you can quickly scale your business and get healthy profits.  

Thinking it's easy money

Your perspective matters here. Dropshipping isn't a get rich quick scheme. Marketing is another crucial aspect of the Dropshipping business model as you have to invest money into paid traffic. To stand out from your competitors, you need to adopt a strategy where your products look unique. Copy/pasting product descriptions, images, and reviews are easy ways to ensure failure in dropshipping. You have to stand out. It can be through your brand's language, imagery, or copy.

Offer False Delivery time/dates.

This is the most common mistake that dropshippers have. I can understand that you want to please your customers, but giving them false hope to deliver soon will cause more harm than good. There are so many things that could go wrong during shipping, and if you don't deliver the shipment to your customer on the promised time, this will hurt your business. It is a proven fact that customers are discouraged by long delivery time, but it will negatively impact your business more if your customers get their shipments late.

So talk to your supplier and find out the real delivery time and communicate the delivery timeline to your customers beforehand. This communication could be done on an FAQ page, order confirmation email, and shipping confirmation email. You can also give your customers incentives like free insured shipping or occasional surprise gifts that are little to no cost to you, but add to the customer's overall experience to feel good about this process.  

Publish Unclear or too-generic Policies

As it's a new business venture for you and you may think that it's not important to write unique policies. There is a chance that you just copy and paste various policies from other dropshipping websites. Still, some of the terms mentioned in these generic policies may not suit your business model or specific needs.

For instance, you unknowingly copy and paste a term in the policy against the state laws that may get you in legal trouble. Also, some well-established companies offer "no questions asked" return policy that may not suit you. Therefore, it is prudent to do your research and write your unique policies as per your business needs.

Return Snags

If you don't put a clear system in place for returns, your business can quickly turn into a nightmare. It's important to respond and take care of issues in a timely fashion to prevent chargebacks. To avoid such a situation, you need to lay down a return policy plan with your vendor. Customers usually tend to wait for their refund after they send out the return shipment. Therefore, you need to organize the return and refund process to process the customer's refunds without delay.

Indeed, Dropshipping is not very easy as some may think, and it doesn't matter how cautious you are, you will surely make a few mistakes as you go, but you'll learn along the way.

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