5 Things To Know Before Starting Dropshipping Business

things know before starting dropshipping business tips new dropshipper

There are plenty of inevitable possibilities for trial and error in the business environment. As entrepreneurs, we have discovered that sometimes failure is a prerequisite for innovation. According to an old Chinese proverb, failure teaches us how to avoid making the same mistakes again. Hence it is the mother of success. In truth, there is no alternative to real-world expertise when it comes to operating our businesses and dealing with problems that are common in the real world. It is likely that certain mistakes are unavoidable, but if you take the time to learn the lessons that other dropshippers have discovered the hard way, you can avoid making costly and time-consuming mistakes. 

Here are five things to know before starting dropshipping. However, do not forget to buy a dropshipping business with high-profit margins

Vital Things To Know Before Starting Dropshipping 

Learners or beginners in dropshipping should take note of these dreadful mistakes. Many dropshippers have committed these mistakes and were slowed down on their pathway to success in dropshipping. Takes cognizance of these 5 things to know before starting dropshipping to aid your growth in a short while. 

1. Place Emphasis On The Product's Quality 

At AliExpress and Alibaba, two top-notch marketplaces, there is a lot of product sourcing taking place. It would be best if you stayed away from the error that many dropshippers made, which was to choose the seller with the lowest pricing. 

This was a bad concept since it caused vendors to compromise the quality of the goods they offered and the packaging they used in order to offer the lowest costs. We did not examine the samples because we were dropshipping. As a direct result of this, we had a lot of complaints from customers who claimed that the actual products did not match the ones shown in the ads. 

We started looking back at the past and considering what went wrong. The suppliers we chose had the lowest prices, but we later discovered that the products they were selling were of subpar quality. 

You should only occasionally deal with sellers who are offering their items at the lowest prices after thoroughly investigating them. It is feasible that doing so will have an impact on your company's bottom line in the long run. Make sure always to place a test order with your selected suppliers to ensure the product's quality and to see what your customers will receive. If you complete all of your research and analysis immediately away, you can avoid making costly mistakes. 

2. Don't Rely Solely On One Service 

Previously, we used a single supplier for all of our orders for a single viral and incredibly well-liked product, and as a result, we were absolutely overrun by the volume of orders that came in for this product. In a short while, we ran out of stock. We sent all of the orders to this provider because we have a great working relationship with him. He didn't express his worry about not being able to keep up with that rise, though. To cut a long story short, we had a backlog of orders that we couldn't complete in a timely manner, which led to a large rise in the number of chargebacks we got from disgruntled customers. 

When you have a lot of chargebacks lodged against you, your merchant account is in danger of being canceled. We are currently looking for three to five additional suppliers for each product we sell as a result of this setback. Furthermore, even though we are confident that Supplier A can complete all of our orders, we now split up our orders across a number of providers so that we have a backup. 

The method we employ is as follows: 

● 60% goes to the provider. 
● The second supplier receives 30%. 
● To Supplier C, 10% of the total is allocated. 

With this strategy, we are also building relationships with other suppliers, which will be useful if Supplier A ever experiences a problem. Making sure you select reputable suppliers is crucial to the success of your online store since they will serve as the cornerstone around which your dropshipping business will be constructed. Finding three to five trustworthy suppliers is crucial when starting in the dropshipping business. Analyze these elements carefully to decide which vendor should handle the majority of your orders. 

By doing this, you can lessen the amount of time you are unavailable while also spreading out your risk. Be careful that stock shortages can happen with even the most dependable merchants. This kind of situation regularly occurs in dropshipping, especially when attempting to sell well-liked products. Your vendor is required to inform you if there are any problems with the supply chain or the production process. However, it is your duty to see to it that your clients are able to get their orders and that they are made aware of any potential shipping delays. For the dropshipping business model to work, a partnership between a seller and a supplier is necessary. Investing the time to build trusting relationships with a wide range of suppliers will pay you in the long run. 

3. Make An Investment In Providing Outstanding Customer Service 

When we first started our dropshipping journey, we had a strong marketing background, which allowed us to swiftly gather a huge amount of orders. Unfortunately, we were unable to create our infrastructure and hire a support team in time to respond to client complaints. We received numerous complaints from customers asking for shipping status updates as a direct result of this. We chose to significantly boost our spending on customer service because this was one of our biggest issues. The outstanding customer service and quick reaction times that we provide are currently one of our biggest sources of pride. 

Remember that there is no direct line of communication between the customer and the supplier. Your employment requires you to address the queries and worries expressed by customers, so it is critical that you do so as soon as is humanly possible. This is one of the most important things to know before starting dropshipping. If you pay attention to this, your client satisfaction ratings will improve significantly, and you run the danger of losing out on prospective business opportunities. 

4. Diversify The Sources Of Your Traffic 

In the long run, you can waste a lot of time and money if your website only receives visitors from one source. Ninety-nine percent of dropshippers only concentrate on Facebook when it comes to traffic sources. As Facebook continues to gain popularity, the rising cost of advertising there will have an effect on your profit margins. As a result, you can observe that your dropshipping profits continue to decline. You run the danger of experiencing a substantial decline in profits almost immediately when you put all of your eggs in one basket and then encounter problems (like having your ad account banned, for example). 

Make sure a variety of sources are driving visitors to your website. Having backup plans is essential when it comes to managing your business since they give you flexibility and options in the event of a catastrophe. Use other traffic sources like Pinterest and Snapchat advertisements, Google Shopping, Google AdWords, and SEO in addition to these (search engine optimization). It is best to take the initiative to diversify the sources of your website's traffic if you don't want to experience severe losses as a result of algorithmic changes made by Facebook or Google. 

5. Attempt To Compete On A Global Level 

Europe is still a very profitable market, despite the fact that the bulk of dropshippers focus their efforts on English-speaking nations like the United States and Australia. In the nations of Europe, we have had a lot of success. Dropshipping has never been easier, and I regret not considering initially extending my company internationally. Dropshipping makes it possible to sell goods overseas. 

The benefit of dropshipping is that it allows you to sell your products all over the world once you have your procedures established. International markets offer a plethora of opportunities because there is often less competition for your products there. It would be best if you looked into whether the payment gateway you use supports the various currencies that are used in other nations and whether this will result in extra costs in order to prepare for this. 


As experts in eCommerce, these are things to know before starting dropshipping. Many droppshippers failed to understand these tips and failed woefully. If we are prepared to learn from them, looking back at our past experiences—both successful and unsuccessful experiences—can provide us with the insights that will help us succeed in the future. 

By learning from us, you can save yourself from making the same errors that many eCommerce business owners before you did. You need these tips and guidance to further the growth and expansion of your dropshipping business.

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