Is Dropshipping Worth it in 2020?

Is Dropshipping Worth it in 2020?

Dropshipping has allowed countless companies to operate without the need to maintain inventory, own a warehouse to store products, or even have to manage the shipping.

Despite its convenience and cost-effectiveness, some people are wondering if utilizing the shipping and fulfillment method is worth it in 2020.

Are you on the fence about using dropshipping for your e-commerce business? Is dropshipping worth it? Let’s take some time to examine why some people have problems with the once hailed shipping and fulfillment system.

Is Dropshipping Worth It? 5 Reasons Why People Think It Isn’t 

Dropshipping could be the answer to simplifying logistics and lowering operating costs for your business. The process itself is very simple.

First, the customer will place an order for a product in your online store. Once the supplier receives the order, he will be able to ship the order directly to the customer on the retailer’s behalf.

The truth is that dropshipping can still be very helpful for businesses in 2020. Business owners just need to make sure that they have the right service to fulfill their orders.

If you read an article or talk to a fellow e-commerce store owner about the pros and cons of using dropshipping services, you’ll probably hear the following points come up as reasons why business owners should stop fulfilling their orders with this method.

1. Bad Quality Products

One of the best things about utilizing dropshipping services is that business owners no longer have to deal with product management. The dropshipping supplier provides the products the store sells.

Every business owner wants to be able to give their customers great products. That’s why it is important to make sure that you choose a service provider that only sources high-quality products.

If you choose a supplier who ships low-quality products, your business won’t be able to last long. Eventually, you’re going to lose customers and will see complaints come in about your merchandise.

2. Long Shipping Wait Times 

Fast shipping times are supposed to be one of the main benefits of utilizing a dropshipping provider.

In theory, suppliers should be able to handle order fulfillment much faster than a regular merchant could. When shipping times start to go up, problems begin to arise for the supplier, the business owner, and the customer.

The supplier may have run out of products and could have a lot of items on backorder. They may be disorganized and could not have a good POS system. It’s even possible that extreme weather events cause delays.

Either way, the dropshipping supplier will have to deal with angry business owners, business owners deal with angry customers, and angry customers end up going somewhere else.

3. High Costs 

If you plan to fulfill your orders via dropshipping, you have to keep in mind that you will be buying only one piece at a time. Therefore, it is likely that you will purchase your products at around B2C prices. Since suppliers will not offer you the same B2B prices they offer to customers who buy over 1000 pieces of the same product.

Before you choose a product to dropship, you must weight whether it is worth it, you have to count in your costs: the product price, the shipping and the ads to draw your clients to your website.

It is very important to do research online to see the prices at which similar items are sold by your competitors. Doing this will help you understand the potential price at which you can sell your items. If you do not consider all these things, eventually all the costs will eat up your profits, and if they are too high, you can lose a lot of money.

4. Lack of Support

Your supplier must be able to provide assistance should any problems arise with your orders. Dropshippers should be supported by their supplier in handling problematic orders or refunds.

Bad customer service can do a lot of harm to your business. This is why it’s important to make sure you look into how your dropshipping service provider can assist you in the management of problems with customers.

Some dropshipping service providers may have inadequate customer service, while others may take too long to process requests. If the service provider isn’t efficient, the resolution of problems may take weeks. This is another surefire way to end up with angry customers.

5. Unprofessional Sellers

When you really think about it, a lot of the problems on this list come down to a lack of professionalism.

A dropshipping service should be able to provide e-commerce business owners with high-quality products at a reasonable price. They should have a solid plan for handling customer service and should be able to ship products on time.

This is why it’s very important for any business owner who’s interested in using dropshipping services to spend time researching providers.

You’ll want to make sure that you’re getting the best service possible. If you don’t, your business will end up suffering for your provider’s mistakes.

Dropshipping is Worth It with The Right Supplier

Is dropshipping worth it in 2020? The answer is going to depend on the supplier you choose and we have the perfect solution for you. A supplier that can help you avoid all the 5 problems described above. This is Yakkyofy.

Yakkyofy is the only software that can help you to manage the entire fulfillment process of your dropshipping store, from sourcing to delivery.

Not only the Yakkyofy team will source for you the products to sell from a pool of selected factories but will also check the quality of the items before to ship them. In this way, we will answer to the problems of the Quality of the Products and of the unprofessional sellers.

With Yakkyofy you will also be able to buy products at B2B prices and ship them with the faster shipping method available, Special Line, answering in this way to the other 2 problems of the Long shipping wait and the high costs of the products.

Last but not least, Yakkyofy will be your only point of communication for all the products that you will sell in this way you will not need to contact hundreds of suppliers to manage your store, you will need only to speak with our customer service representatives.

So are you ready to start dropshipping in 2020? If you want to start your e-commerce business with the power of dropshipping, we’re here to help.

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