It is quickly becoming my favorite website.
I wrote about the 3 unexpected benefits of Quora here.
The other day, someone asked a great question — What are the top 10 dropshipping mistakes?
This was a great question, and below you will find, in my opinion, are the 10 biggest mistakes people make when dropshipping;
- Selling trademarked goods — This is by far the biggest mistake people make. Shopify stores are being shut down everyday because of this. I know of a well known marketers that got sued for $2.1M because of this. If you do not have a license to sell movie, music & sports items — DO NOT SELL THEM
- Ridiculous expectations — Most expect instant success. Like any business this takes time. This takes work. This takes failing a lot with Facebook ads. For every 10 products you run ads to, you should find one winner and one that does alright.
- Use Ali Express for too long — Dropshipping from Ali Express is a great way to get STARTED but not a way to build a sustainable business. After the initial 6-8 weeks, and you have some capital, I recommend looking into buying in bulk ans shipping the product yourself (get help from neighbors) or using a fulfillment center. I have done both, but prefer using a fulfillment center. It’s a bit more money, but your customers will buy a lot more often when doing it this way – essentially making you more money.Also, there are a ton of US based dropshippers that you can use (I use one in Texas). A little higher price, but much better quality and you can charge a lot more. My margins are actually better when selling US items.SEE VIDEO BELOW WHERE I SHARE A GREAT US DROPSHIPPER FOR LICENSED ITEMS
- Giving Up Too Soon – I know some people who give up after a couple weeks. It’s sad, but a lot of the coaches & courses out there make it seem like it’s an “easy” business, or that you should see success in a matter of days/weeks. See point #2
- Spend Way too Much Time on Niche Selection – Pick a niche and go with it. Commit yourself to 90 days in ONE niche and you will succeed. I have yet to see anyone not succeed when COMMITTING to it for 90 days. Consistency is the key to your success
- General Store – Most marketers recommend picking a general store to sell anything and everything. Great in theory, but it makes it so hard to target. It also leaves you an “out” where you can jump from niche product to niche product and never really knowing your market.
- Knowing Your Market – Most try to market to everyone thinking they have the latest & greatest product out there. It is ok, and HIGHLY recommended to “trim your tribe”, You want to find the people who “have to have your item right now” That is your target market.
- Shitty Customer Support – I see this all the time. They make the sale and just ignore their customers. Look at the Facebook pages and all the complaints. Very rarely will you find a business that is responding to their potential customers/customers who are asking questions, have complaints, etc.
- Chasing the Money – 98% of the marketers out there get into this business and chase the money. I know, because I was one of them. I had a jewelry store and did very well with it, until I got burned out. I couldn’t do it anymore and walked away from it. Learn form my mistakes, and go into a niche you have an interest in.
- Pick a Niche You Have a Passion/Interest In — Saved this one for last, as this is the most important one. It is 2017, and there is simply no reason not to build a store around something you enjoy. We live in exciting times, and you can build a business around your favorite band, TV show, movie, hobby, etc. There is so much opportunity out there.Here is a video on how you can use a US based supplier to sell officially licensed items…
This was a great question, and hence why I turned the answer into a blog post. Some of these mistakes above are mistakes I made, and wish I would have had this list when I started.
Use this list in your favor, it should save you time, money and a lot of frustration.