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Sunday, September 27, 2015

Take Care The Dropshipping Disadvantages


Take Care The Dropshipping Disadvantages

In spite of dropshipping advantages for beginners and small merchants, also there are some disadvantages that must be taken into consideration before starting in dropshipping business.

LOW MARGINS

The biggest disadvantage to operating in a highly competitive dropshipping niche is the low margin. It's so easy to get started and the overhead costs are so small ,many merchants will set up shop and sell items at rock-bottom prices in an attempt to grow revenue. They've invested so little in getting the business started so they can afford to operate on minuscule margins. But, you can do a lot to mitigate this problem by
selecting a niche that's well suited for dropshipping.

INVENTORY ISSUES

When you're sourcing from multiple warehouses, which are fulfilling orders for other merchants, inventory changes on a daily basis. While there are ways you can better sync your store's inventory with your suppliers', these solutions don't always work seamlessly, and suppliers don't always support the technology required.
  
SHIPPING COMPLEXITIES

If you work with multiple suppliers – as most dropshippers do – the products on your website will be sourced through a number of different drop shippers. This complicates your shipping costs. For instance, if your customer places an order for two or three items, all of which are available only from separate suppliers. You'll incur two or three separate shipping charges for sending each item to the customer, but it's probably not wise to pass this charge along to the customer, as they'll think you're grossly overcharging for shipping! And even if you did want to pass these charges along, automating these calculations can be difficult.

SUPPLIER ERRORS

You may blamed for something that wasn't your fault and you have to accept responsibility for the mistake anyway!
Even the best dropshipping suppliers make mistakes fulfilling orders mistakes
for which you have to take responsibility and apologize. And mediocre and low quality
suppliers will cause endless frustration with missing items, botched shipments and low-quality packing, which can damage your business's reputation.

Finally, don't worry about the above problems, with careful planning, most of these problems can be resolved and doesn't prevent you from beginning a profitable dropshipping business.
 
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