Currently, most businesses and emerging entrepreneurs are striving to raise their business growth through digital marketing. Consequently, the growth of ecommerce has been on the high side. However, several strategies apply to the concept of ecommerce; some of which are more productive than others. Dropshipping is one such strategy; a method which has become less famous over time due to recent limitations that have reduced its profitability.

When it comes to dropshipping, 2020 has not particularly been the best of years. And as a result, there is a polemic opinion over dropshipping; while some believe that it is entirely dead, others still consider it as a reliable method of earning a profit. So, the question now is: Is it still possible to generate income via dropshipping in 2020? Before we can proffer a definite answer, we must shed light on some components of dropshipping as follows:

Clients Remain as a Priority

One of the most important aspects of turning dropshipping into a profitable endeavor is ensuring that customers are considered as a top priority. Many ecommerce newbies believe that dropshipping is a straightforward and reliable means of generating fast cash, whereas it’s actually a complex strategy that demands full attention. Truly, dropshipping helps reduce the number of products to keep in stock, but it also comes with certain drawbacks, most especially concerning customer’s gratification and refund.

Most people, who initially believed that dropshipping is a means of reaching ecommerce success quickly, had come to realize that they have misunderstood the whole concept, and consequently, had to pay the price. From their mistakes and lesson learnt, some ecommerce experts often discuss common dropshipping mistakes, which can lead to outright business failure. However, undoubtedly, several amateurs will continue to commit the same mistakes as the majority of them, who wish to harness the power of dropshipping for their enterprise, often knows little about what should be done first.

For instance, you must learn how to contend with the high cost of shipping, which is commonly seen as a beset over the possible gains of any operation that involves dropshipping ecommerce. That aside, other shipping challenges such as quality control will also materialize. And if care is not taken, they can be quite frustrating in dropshipping endeavors.

Possible Lack of Accountability

Contrary to most people’s belief, dropshipping is not an entirely secured affair. Considering that you and your clients won’t be conversing with your product’s supplier physically, there is a chance of getting scammed in the process. In fact, you may end up being supplied with low-quality goods, which may irritate and frustrate your customers. For this reason, you must only consider entering a dropshipping agreement with suppliers, which you find reliable after a comprehensive dropshipping training. While finding a wholesale supplier can be demanding, getting a reliable supplier is vital to successful dropshipping operations. Advisably, you should review how to find dropshippers and required supply-side experts if you intend to give dropshipping a trial.

Above all, integrity and efficiency should be maintained. Some suppliers may try to coax you with mouthwatering profit margins; however, the ripple effect will be a loss of several clients once you begin to deliver low-quality products for your extra gains. Rather than luring new, naïve customers, you stand a better chance of earning more money through returning customers who are satisfied with your delivery – don’t forget, the naïve clients will also ditch you forever once they realize your lack of integrity.

Get ready for additional research

As a business owner, the implementation of dropshipping models demands extra research from you. If you want to run dropshipping for your establishment successfully, then people employed for the operation must consistently be engaged in finding new products, suppliers and engagement models to enhance profit. Dropshipping comes with extra challenges, which you may leverage to improve your gains. Also, get ready to come across some new aspects of the job. For instance, you won’t have any control over quality control; hence, you must design a new technique to ensure that your clients are not being duped. That’s not all; extra customer support representatives will be needed to answer consumers who are baffled about some complexities involved in the dropshipping model. For example, dropshipping often features a difficult return process. And considering that around 30% of all online purchases are usually returned, it is of no gainsaying that you are likely to come across such a problem in due time. 

Furthermore, don’t be surprised to learn that dropshipping doesn’t necessarily mean that you will have a product in stock when the clients wish to purchase them. In this game, customer satisfaction is key; and to do that, you must put in place a system that notifies you when some products become unavailable. For instance, season-oriented changes in the business cycle, such as Black Friday Sales, may overturn your dropshipping template – just as they can normalize physical business sales.

Now, is dropshipping truly worth it?

Despite the challenges that come with dropshipping, several business owners still believe in the process since only a small amount is required to start up a dropshipping operation. People who thrive in niche industries are capable of getting accustomed to the supply line of their specific market and capable of expressing complete domination. Therefore, it is safe to label dropshipping as a business model which features several serious challenges but offers rewarding potentials for business owners who are more than willing to learn the process thoroughly.

For instance, in this competitive ecommerce industry, several dropshippers have successfully recorded huge gains as a result of their ability to reduce shipping costs, and willingness to learn the supply chain. In the current year, dropshipping has been helped to remain as an effective strategy through outsourcing of shipping model. And over time, we have realized that in spite of the increasing complexity of ecommerce, savvy entrepreneurs will continue to utilize shortcuts, such as dropshipping, effectively for many years.