Dropshipping has helped countless companies operate without the need to maintain inventory, have a warehouse to store goods, or even just manage shipping logistics.
However, despite its affordability and efficiency, some still wonder how convenient it is to use this business model in 2022.
Not sure whether to use dropshipping to fulfill your online store orders? Let’s look at the reasons why some people have had problems with this once-loved shipping and fulfillment system and why we believe dropshipping worth it still in 2022.
Is dropshipping worth it? The 7 famous Cons.
Dropshipping could be the answer to simplify the logistics and operating costs of your online business. The process itself is very simple – it all starts with a customer placing an order for a product in your online store. Once the supplier receives the order details, he will ship to the customer on behalf of the retailer (online shop).
The truth is, dropshipping can still be very useful for online businesses in 2022. However, there are some problems that have arisen in recent years that we want to analyze together:
- Low quality products
- Slowness in shipments
- Reduced margins
- Problems with payment gateways
- Lack of after-sales support
- Unprofessional suppliers
So let’s see together what these problems are, how to deal with them, and why, dropshipping worth it in 2022.
1. Low quality products
Perhaps one of the best things about dropshipping is the fact that e-commerce owners no longer have to deal with the logistics of their products.
The supplier will be the one who will source the products for your online store, and given the fact that any seller wants to supply their customers with quality merchandise, it is very important to make sure you choose a partner who can provide you with high quality products.
If you choose to partner with a supplier who ships scarce products, your business will suffer greatly and won’t last long. You will end up losing existing customers and will receive a lot of complaints.
2. Slow shipping
Fast shipping times should be one of the main benefits of using a dropshipping product supplier.
In theory, suppliers are able to handle order fulfillment much faster than a normal merchant can. When shipping times get longer, problems arise for all parties, the supplier, the dropshipper and the end customer.
Many things can affect shipping times, for example, the supplier may have run out of products, may have a lot of backlog items, or they may be disorganized and not have a good POS system. Delays in shipments could also be the consequence of important weather events.
In any case, the supplier will have to deal with irritated dropshippers, who in turn will interface with angry customers, with the result that the latter will end up buying the desired products from someone else.
3. Reduced margins
If you decide to dropship your products, you will need to keep in mind that you will buy one piece at a time.
Therefore, chances are you will have to pay for your products at B2C prices. Because suppliers won’t offer you the same B2B prices they offer to customers willing to buy over 1000 pieces of the same product.
For this reason, before choosing which product to sell, you will have to evaluate if it will be worth it, to understand it, you will have to add the shipping costs and the cost of advertising necessary to attract customers to your site to the price of the product. It is very important to do an online search to compare the prices of similar items sold by your competitors. This way, you will understand at what price you can sell your products.
If you don’t take all of these into consideration, costs will ultimately reduce your profits and, if too high, you could lose a lot of money.
4. No Brand No Party
Connected to the issue of margins is that of the personalization of products and packaging. Many dropshipping suppliers do not provide the ability to ship goods in custom packaging or private label products, and this can be a big drawback.
Today, when advertising campaigns are increasingly expensive, building a brand is the secret to building a business that can last over time. Building a brand by dropshipping products branded with your logo is easy and cheap, so we recommend that you look for suppliers who can offer you this service.
5. Problems with payment gateways
In recent years it has happened that dropshippers have seen their PayPal or Stripe accounts banned or large sums of money blocked for some time. In fact, the quality of the products has now become essential when doing dropshipping.
Customers who receive products of poor quality or that do not match the product page descriptions will ask for returns or refunds. A large number of returns or refunds causes your account to be blacklisted by many payment gateways whose best interest is to protect their end customer.
6. Lack of after-sales support
It is very important that your supplier provides you with adequate assistance, should it be needed. Poor customer service can cause a lot of damage to your business, which is why it’s important to make sure your supplier can help you handle problems with your customers’ orders (e.g. wrong variant or damaged product).
Some dropshipping suppliers may have inadequate customer service, while others may take too long to process your inquiries. If your supplier doesn’t provide you with efficient support, it may take weeks to resolve issues. Such a situation would bring you droves of angry customers.
7. Unprofessional Suppliers
If you think about it, many of the problems we analyzed above stem from the lack of professionalism on the part of the suppliers.
A serious supplier should be able to source high quality products at a reasonable price. It should also have an assistance service for its customers (dropshipper) and be able to ship the products within the agreed time frame.
For all the overexcited reasons, it is essential for anyone interested in using dropshipping as a sourcing method to do thorough research on suppliers.
You will need to make sure that you have the best service available, otherwise your business will suffer the consequences of errors caused by your provider.
Is it worth doing dropshipping on eBay? and Legal
Many dropshippers have been banned from dropshipping, or at least that’s what they believe. We want to dispel a myth, buy products from one marketplace and resell them on another (such as buying on Aliexpress and reselling on eBay is not dropshipping, but it is a sales method considered rather borderline and which is called Arbitrage.
Dropshipping is legal on eBay , what is illegal is to arbitrage or sell products that you don’t own.Right on his eBay site about dropshipping he says this: “Drop shipping is when you buy products in stock from a supplier and work with them to send items directly to your buyers without ever handling them personally.
Drop shipping, where you fulfill orders directly from a wholesale supplier, is allowed on eBay. However, listing an item on eBay and then purchasing the item from another retailer or marketplace that ships directly to your customer, is not allowed on eBay. “
Is it worth doing dropshipping with Aliexpress? and Legal
Buying products from one marketplace and reselling them elsewhere, then buying products at B2C prices to resell them at a higher price is a gray area practice, but one that is no longer so convenient. In fact, buying products with Aliexpress:
- you can’t control shipments
- you can not control the quality of the products (you are in the hands of the single supplier on AliExpress)
- you cannot have customized packaging
- you cannot sell products branded with your logo
- you do not have any kind of relationship with the supplier
All this often causes dropshippers who still use this type of marketplace to run into all the problems listed above. So it’s really worth continuing to follow this practice.
Dropshipping pays off if you find the right supplier
Is dropshipping worth it? The answer will depend on the provider you choose and we have the perfect solution for you. A supplier who can help you avoid all the problems we have described above, namely Yakkyofy.
Yakkyofy is the only partner able to help you manage the entire fulfillment process of your dropshipping orders automatically and at the same time offer you quality products from China.
The Yakkyofy team will not only help you find the products you are looking for from a carefully selected group of Chinese factories, but will check the quality before sending the products. In this way you will be able to overcome the problem of product quality and non-professional suppliers.
With Yakkyofy you can also buy products at wholesale prices and ship them with the fastest method available to us, Special Line. This way you will kill two birds with one stone and avoid slow shipping and excessive cost for products.
Yakkyofy then offers its customers the possibility to ship customized products with their logo rather than simply ship standard products in branded packaging. Pretty impressive isn’t it?
In conclusion, Yakkyofy will be your single point of communication for all the products you sell, so you don’t have to keep in touch with hundreds of different suppliers to run your business. Our dedicated customer support team will assist you in resolving any problematic orders.
Are you ready to try your hand in the world of dropshipping in 2022? If you want to start your own e-commerce business, we are here to help!