5 DropShipping Challenges and How to Overcome Them

DropShipping is not an effort-free get rich quick scheme. Like any new business, it has its challenges, but they are not insurmountable with the right approach. The DropShipping experts at Armaan Resales identify these challenges and provide tips to keep them from impacting your business.

If you’re just beginning your journey into DropShipping, you’ve landed on an excellent blog. Being prepared for eventualities can ensure the long-term success of your new venture.

The Benefits of DropShipping

Before we get into the challenges of this type of business venture, let’s explore why DropShipping has become so incredibly popular over the last decade.

DropShipping allows people from all walks of life to bring in a second income stream, become an entrepreneur or pad their pension pot – and it works when you put in the effort required to run a business. With an estimated industry worth of approximately USD $162.44 billion, DropShipping provides an ideal opportunity for a budding entrepreneur to launch a new business.

Additionally, DropShipping boosts bank accounts and allows store owners to be their own boss, work from anywhere in the world when it’s convenient for them and have the work/life balance they desire.

DropShipping Challenges

DropShipping can be incredibly profitable, but it isn’t without its challenges. At Armaan Resales, we try to prepare our clients for any eventualities they may face when starting their DropShipping business. Being ready for any challenges you might encounter will ensure your success well into the future.

1. Finding a reliable supplier

There are hundreds if not thousands of DropShipping wholesalers across the globe. Finding a supplier isn’t an issue. Finding a reliable one you can trust with high-quality products is another thing entirely. At the end of the day, you’re responsible for the quality of the goods you’re selling and their timely arrival. Because of this, it’s important to find a supplier that ticks all the right boxes.

There are two ways you can find a trustworthy supplier. You can work with a company like Armaan Resales, which will source high-quality products for you from reputable wholesalers all across the world, or alternatively, if you’re building a DropShipping business without partnering with a team of experts, you can:

  • Research potential wholesalers and read testimonials from a reputable website like TrustPilot or Reviews.co.uk.
  • Ask for product samples to ensure quality is as expected.
  • Evaluate your communication with them in the supplier research phase to ensure it won’t become an issue should you have a problem.

2. Building brand reputation

As a DropShipper, you’ll tend to sell your products on platforms that already have their own brand identity, such as Amazon. This makes building your own brand difficult. How can you foster customer loyalty when they don’t know they’re buying from someone other than the platform?

There are a few ways to build a brand reputation as a DropShipper:

  • Sell your products on a bespoke eCommerce website or a platform like Shopify that allows you to use your own branding to sell your products.
  • Customise your packaging. This is far less expensive than selling custom products and can make you easily identifiable to your customers.

3. Building customer trust

When you’re never in physical contact with your products and operate hands-off as a DropShipper, building customer trust can be a challenge. Sourcing high-quality products that meet customer expectations is the first step in establishing trust. If you’ve laid the groundwork by choosing a reliable supplier, your job is made easier. Additionally, you should:

  • Respond to any communication from customers promptly with empathy and resolve any issues that may come up.
  • Ensure customers know what to expect when ordering your products by providing them with clear product details and engaging, high-quality photos and videos.

4. Products out of stock

This isn’t a challenge only for DropShippers. Going out of stock of popular items is common for retailers who’ve inaccurately forecasted what customers will be looking to buy during peak shopping seasons. Doing your market research and knowing what customers are interested in buying is crucial to keep this from happening. Once you know what will be popular for the season, ensure you source enough products to keep packages flying out the door and customers happy.

5. Getting banned

Operating a DropShipping business on well-established platforms means following their rules. If you happen to breach those rules, you may find yourself banned. The best way to deal with this is to be prepared in advance so that a ban never occurs. Keep on the straight and narrow with your platforms by:

  • Providing clear, accurate information about all products.
  • Follow all guidelines set forth by your chosen platform. They can be found in your seller resources and on their website.

Running a DropShipping store can set you free from the everyday rat race, allow you to be your own boss, have the work/life balance you desire and be incredibly profitable. While challenges could pop up, being prepared will ensure you’re ready for them should they occur. Working with a team of experts with more than a decade of experience will make DropShipping effortless. Are you ready to get started? Contact Armaan Resales today.

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