As with any profitable business model, dropshipping isn’t without its own risks. In order to be successful, you need to fully understand these “risk areas” and how to avoid them. Over time, an innocent enough mistake could potentially lead to a severe decrease in revenue, or worse, the end of your business. Risk areas are prevalent throughout the whole process: from selecting a drop-shipping supplier to successfully completing an order; sometimes, unforeseen issues can arise even after the order process has been completed successfully.

Below, we have compiled a detailed list of these “risk areas”, to better equip you with the knowledge of how to spot them and avoid them.

1. Untrustworthy Suppliers (Drop Shipping Partners)

The drop shipper you choose to partner up with should be your number one concern. Think about it: the drop-shipper is the one responsible for supplying and shipping all of your orders — if you want your customers to have a satisfying experience, recommend you and become returning customers, then you need to team-up with a supplier that you can trust. Customers always want the best value for their dollar and that encompasses both the product itself and the shipping process.

2. Poor Shipping Practices

The world of shipping has changed. Mega-corporations, like Amazon, UPS, and others, are capable of shipping packages from one side of the world to the other within a day’s time. Because of this, customers have been conditioned to experience impatience with any delays in the shipping process. Providing reliable, stable, and traceable quick-shipping needs to be of the utmost importance if you want to compete in the realm of e-commerce.  On the off chance that your drop-shipper should deliver an incorrect or damaged product, then re-shipment has to occur, this time at your expense. A poor shipping practice is one of the quickest ways to lead to the end of your online business.

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3. Bad Self-Branding

Visual representation is paramount and as such, you need to connect your products to your very own brand.  Customized products set you apart from your competitors and give your products a premium feel. By doing so, your customers will begin to link specific products to your brand name, thus driving traffic and support, therefore amounting to more sales. Consider providing a free trinket, embossed with your unique logo, included with every order you ship to foster brand awareness. Be sure to customize your website, ensuring it remains unique and optimizes the customer’s experience.

4. Understanding That The Responsibility Falls On Your Shoulders

Sometimes you have to take the blame, even if something goes wrong that is completely out of your hands. If your supplier screws up and makes a bad delivery, the customers are coming to you, not your supplier. Remember, it’s your company after all; your name is on the logo. It’s simply bad to practice to just blame everything on your supplier. Customers want someone who is going to step up to the plate, take responsibility, and ensure them that it’s going to be taken care of — no ifs and or buts. Failing to do so will only lead to a damaged reputation.

5. Choosing the wrong products

Marketing the right products is just as important as selecting the right supplier. You could have the best supplier in the world, but if your products are not in high demand, you’re simply not going to make a sustainable profit. When selecting the products you are going to sell, you must consider and be aware of factors such as market demand, rate of return, relevancy, etc. Follow the market trends and you’ll be fine. Go against the market, and your sales will dwindle. In order to stay on top, be sure to monitor the trends and make any product changes accordingly.

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In conclusion, dropshipping has its challenges. In order to be successful, you must follow the “unwritten” rules listed above. They are some of the most common mistakes that lead to failed business adventures. That being said, now that you know what to avoid, you’re five steps closer to creating your very own, successful online drop-shipping store.