Four Problems of Dropshipping and How You Can Bypass Them

delivery man and customer

E-commerce is a term for any business transaction or activity that occurs over the Internet. It covers various activities, from online shopping to business-to-business transactions.

One of the benefits of e-commerce is that it allows businesses to reach a wider audience than they would otherwise be able to. With a website, companies can sell their products and services to people worldwide. This can be particularly beneficial for small businesses, which may not have the resources to set up physical stores in other parts of the world.

This is why e-commerce is such a popular way of shopping during the pandemic. Currently, the industry is worth $9 trillion, making it one of the largest industries in the world.

One of the most robust business models found in e-commerce that's being started by all sorts of entrepreneurs is dropshipping. So what is dropshipping, and is it for you?

What is Dropshipping?

Dropshipping is a business model in which eCommerce entrepreneurs sell products without carrying any inventory. Instead, when a store owner receives an order from a customer, they contact the supplier, who will then ship the products directly to the customer's door. In some cases, dropshippers contact industrial retailers who usually store certain products. These retailers can then ship the product to the consumers.

Dropshipping apps let you add products from various suppliers into your shop to fuel your product offering.

It's currently considered the 'perfect' business model for new e-commerce entrepreneurs. It's simple to set up and manage, and it doesn't require a large up-front investment. You can also run your dropshipping business in your spare time – you don't need to quit your job to start a successful store. However, among these advantages lies disadvantages.

The Problem With Dropshipping

There are various problems with dropshipping. The very first problem you'll encounter is the competition.

Highly competitive market

The dropshipping space is highly competitive. There are thousands of stores out there, all vying for the same customers. This makes it challenging to attract attention, let alone make a profit.

Competing with other well-funded businesses is tough – especially when you're just starting out. And if you're not careful, you could easily go head-to-head with some serious competition.

Inventory and Shipping Issues

Another issue that dropshipping entrepreneurs face is managing inventory and shipping. When dropshipping, you have to rely on your supplier to send products to your customers. This can lead to shipping delays and order fulfillment issues. Moreover, since you can't manufacture your products, you'll have problems with product availability.

Product Availability

If your supplier runs out of stock, it can be challenging to find a suitable replacement in a timely manner. This can lead to customers being unable to purchase the products they want, damaging your brand's reputation.

Lack of Control Over Pricing

As a dropshipping entrepreneur, you have little control over the prices that you charge for your products. Your supplier will likely set the prices, and you'll have to accept them – or lose the business. This makes it difficult to make a profit, as you may not be able to cover your costs if you're selling at a loss.

These disadvantages make it hard for dropshippers to succeed. Thankfully, there are ways to bypass these. You can start by creating a well-optimized website.

Well-optimized Dropshipping Store

A well-optimized store is sure to get consumer attention. You can do this by using compelling images, writing effective product descriptions, and utilizing persuasive marketing techniques. You should also make sure that your store is easy to navigate, so customers can find the products they're looking for quickly and easily.

Reviews and Social Media

You can also increase your chances of success by leveraging reviews and social media. Reviews can help you build trust with potential customers. A study from Nielsen states that more than 80% of consumers trust reviews from friends and family members. So while leveraging reviews, you should have social media presence as well.


Chatbots are another way to connect with customers and increase sales. They can help you answer customer questions and can even recommend products based on the customer's needs. They increase consumer engagement and can even help book certain orders for you.

Diversify Products

Another way to increase your chances of success is to diversify your product offering. This can be done by adding different types of products or by selling complementary products. For example, you could sell products from various categories, or you could sell products that are related to each other.

Offer Niche Products

Offering niche products can also help you increase your chances of success. This is because people who are looking for specific products are more likely to buy from you. So if you can find a niche product that isn't being offered by other stores, you'll have an advantage over the competition.

Dropshipping is a great business model for anyone interested in e-commerce. It's simple to start and doesn't require a huge investment. However, its disadvantages can certainly take a toll on you. But if you follow our tips above, your dropshipping site, can be one visited by many for years to come.




Like and Share

About The Author

Scroll to Top