In the past year, we have seen that many sellers who started Dropshipping did not make any money and closed their stores, in the end they all failed. To sum up, excluding basic common sense problems, there are 5 reasons why they failed , and those who are still doing or preparing to do dropshopping should be careful as much as possible. It is not just about selecting the hot item.
1, Being too anxious for success
They are too eager to make money from this business. They might be short of money, and they will not be able to live without making money. In this case, do not step into dropshopping at this time, because you need to learn various knowledge points involved in dropshopping. It is better to have a steady job first.
2. Don’t have enough budget
You might think it won’t cost much to buy a domain name and open a shop on shopify. In fact, Facebook advertising is very expensive. What if you start advertising, and know nothing, then you will have to pay tuition for the theory and practice. It takes a lot of time and money to get you started. If you don’t have enough budget, you may not have started any business transaction yet, and your money won’t keep up.
Another is that if you don’t have a budget, you may cut corners and save money, which is the beginning of the end. For example: the target audience to be tested should be at least 5, but due to the limited budget, only 2 will be tested, thus you might be perfectly missing the product that may be hot style. You can check Facebook’s AD grouping test for details.
3. Don’t have enough time
This is the most common reason. You might be lack of time to learn how to market online, no time to settle down and analyze the product and research the audience. You might only have learned how to test and scale the advertising on Facebook. And have ignored other important points, such as: you need to learn how to write copywriting for products, copywriting for advertising, and how to do a good job of advertising video. If you take the time to learn all of these points, the results will be different and you will make money through dropshopping.
4. Don’t know where to make money
This is the most important reason. You won’t make money until you have a hot item. Maybe you have been doing it for half a year, but you still don’t have a hot item, which doesn’t mean dropshopping mode is not good; It’s just that you haven’t found a good product. If it’s not the right product, it doesn’t matter what conversion rate you deduct. Finding the right product is the point.
5. Being too accurate in budget
In fact, you may have run into something called hot item, but you might keep tuning Facebook ads to try to reduce the single conversion cost. You might take too much time and research to buy or make fancy video to get a lower CPM.
When it comes to hot item, what you have to do is to improve the average unit price, such as: upsells, various additional purchasing strategies, discount strategies, improve product descriptions and promote conversion, etc.
6. No team
You do everything yourself? You need to build your team. Virtual team is fine too. You can outsource from Fiverr and so on. Create your own process system, such as: testing, product research, store management, video production, copywriting, customer service, etc. Focus your energy on what’s important.
Last words: You might have witnessed many business owners made a lot of money through dropshipping, but if we don’t get prepared well in advance and learn what mistakes to avoid, the chance is low to really earn money.
