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 Cost of Goods
Running a traditional brick and mortar store can be very risky. The time and money it takes to maintain a physical location and keep items in stock can take its toll on business owners.
If you end up investing in a product that consumers didn’t want, you’ll find yourself with a warehouse full of expensive items that you can’t get rid of. Imagine having to pay rent to store products that you know won’t sell!
By utilizing dropshipping services, you can significantly reduce some of the financial risks that come with managing a retail business.
You’ll only end up paying for the products your customers want, and won’t have to worry about carrying a lot of extra merchandise.
All of this sounds like a great idea, but this profitable system can only work if the goods the business owner gets from his supplier are priced correctly.
High priced goods can eventually end up eating into your profits, and if your product cost is 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? The answer is going to depend on the supplier you choose.
Yakkyofy is the only supplier on the market who can help you manage your business, from the sourcing of high-quality products at B2B prices up to the fulfilment of your orders, in such way automating your daily workload. Moreover, our dedicated customer care team will assist you in the resolution of any problematic orders you might have.
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.
Start fulfilling your e-commerce dreams today!