Earlier today I got some really interesting drop shipping questions from one of my new students and decided to post them here for the benefit of anyone considering drop shipping. I’ve not named the student for privacy reasons because these questions were posted inside the course Q & A area, but here are his exact questions, along with my answers:
1) Which e-commerce websites rely on the dropshipping model?( I’m asking because I’d like to see some online stores best practices which I can use as a model)
“Lots of them! Even big online stores like Zappos, but you would never know simply by looking at the website. Here’s another autoanything.com. I LOVE the look of that store! Blinds.com was built entirely on drop shipping and made the owners very, very wealthy. In fact, they sold the store for something like $50 million.”
2) What are some failure points for beginning dropshippers? What are some reasons that people getting into dropshipping give up?
“Good question. Cutting corners is one reason. You can’t succeed if you don’t put in the effort to create a store that visitors would want to buy from. Tenacity is another reason, but this is no different to any kind of business. You’ve got to stick with it. Resourcefulness is another. That’s not to be confused with ‘resources’ because you could have two different people, one with $10,000 to start his business and the other with $100. The person with $100 could easily be the one to succeed, while the person with $10,000 fails. Resourcefulness is more about using what’s available to you in order to overcome challenges and find solutions to problems. We all have the Internet and we all have a brain. We can use these things to solve problems and move forward.”
3) What are some reasons that online drop shipping stores fail?
“There are many and some are listed above. Other reasons would apply to any online store, not just drop shipping. Not enough traffic is one, and in which case you just need to work on getting traffic. Poor quality products, poor customer service. Again, these things apply to any online store. I suppose the one thing that’s really different is that we are not in control of the orders being shipped out. This means that whenever you start with a new supplier, you need to be watchful. If you start getting multiple inquiries from customers about orders being late, that sort of thing, then you need to try and fix this with the supplier and if you can’t, ditch the supplier and find a replacement.”