6 Reasons Most Dropshippers Fail

Is dropshipping worth your time?

Ultimately?

That’s your call…

If you decide to try it? Go in with your eyes wide open.

Here are hurdles dropshippers face:

#1 Small Margins: Because everything is bought and sold onesie twosie? 

Dropshippers pay higher prices than a site who buys in bulk and holds inventory.

When you’re competing on price?

Losing even a few percent adds up to a lot of lost profit.

Speaking of reasons for small margins?…

#2 Paid Ads: Since most dropshippers can’t wait months for SEO to kick in?

They run paid ads on Facebook, Instagram, and TikTok....

…High ad costs can ruin an otherwise profitable campaign. 

I mean…

…Have you ever heard of paid ads becoming less expensive?

#3 Stiff Competition: Low barriers to entry =  many sellers = lots of competition

(Annoyingly true.)

#4 Relying on Third-Party Suppliers: Sellers need suppliers for inventory and shipping.

What happens if there’s only one profitable supplier of a widget and… 

…they discontinue it?

#5 Cheap Products: Never touching the inventory sounds like a benefit, until…

Customers start complaining. 

Too many bad reviews can kill customer confidence.

Too many returns can get a merchant account shut down.

#6 Long Shipping Times: “I won’t get my order for how long?”

A lot of suppliers that’ll give dropshippers good deals are in China.

Unfortunately…

It’s sometimes hard to get customers used to 2-Day Prime shipping to wait 2-4 weeks for an order.

But

Before I rain on any more parades…

There is an alternative to dropshipping.

It’s anti-shipping, actually.

Something with 95%+ profit margins…

…Doesn’t need paid ads…

…Where your competitors can and often do send you customers…

…Suppliers can be quickly changed without damage…

…There’s ZERO shipping…

…And product quality is as good as you make it…

If you guessed selling info products?

Give yourself a cookie:-)

I don’t know a better business you can build once and sell forever.

This Halloween?

Consider learning to create your own info product as your sweet treat.

…And maybe a Snickers too…

Step #1 - Sign up for Side Hustle Club VIP here

Step #2 - Watch Insights into Offers (How to create your own info product)

Step #3 - Go Scrooge McDuckin’ in your money vault.

Happy Halloween,
James Foster