Dropshipping Mistakes to Avoid

Dropshipping has become increasingly popular with many large and small retailers all over the world. The main benefit of this business model is that it allows retailers to sell goods without maintaining an inventory. However, despite its numerous advantages, dropshipping has its own share of drawbacks.

Here are some of the common mistakes you need to avoid in dropshipping:

  1. Not researching

Many people get into dropshipping without taking time to understand exactly how it works. Getting into this business blindly is likely to result in failure and wastage of resources. Therefore, before jumping into the bandwagon, you need to carry out some research. What are the legal requirements for becoming a dropshipper? How much time will you need to invest? What are the business costs? Who is your competition? Which items are most profitable? The good news is that there are many dropshipping guides that can help you understand the dynamics of the business.

  1. Poor branding

Branding is very important for attracting repeat customers and generating goodwill. This is why it is very important to make a lasting impression on your customers throughout the buying process. You can reinforce your brand by using branded packaging slips or marketing package inserts. If within your budget, you could also create branded accessories such as labels and tapes that can be used for packaging. Don’t forget to follow up with surveys and thank you notes after the purchase. This will ensure that your brand remains on the mind of the customer.

  1. Not having a clear returns policy

Having a well-articulated returns policy is very important for enhancing customer satisfaction and boosting conversions. When a customer decides to return something, you need to know how to deal with it. To stay clear of inventory, it would be advisable to send the item back to the vendor. However, some vendors might charge a fee for restocking or even reject items that are not in good condition. Alternatively, you could receive the returns yourself and then resell them.

  1. Working with unreliable vendors

Your success in dropshipping will be influenced by the kind of vendors you choose. Vendors who are not reliable will frustrate your customers, waste your time and leave you with losses. This is why it is very important to make the right choice from the onset. Have a pre-selection criteria of what you are looking for in a vendor. Take time to read reviews to find out what people are saying about different vendors. Once you’ve made your decision, be sure to have a written vendor agreement that outlines expectations in areas such as inventory updates, shipping times and returns.

  1. Poor choice of products

When it comes to choosing products, stocking too few items is a common mistake you need to avoid. If customers visit your store and don’t find what they are looking for, they will simple leave and go elsewhere. Having enough options will make your site appear more visually appealing and enhance the chances of making more sales. You should also avoid focusing mainly on seasonal products.

Article written by

Charles Mburugu is a professional blogger who writes for TechBlogKe. You can follow him on Twitter @techblogke

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