Menu
5 Reasons Why Dropshipping Could Be A Scam
Firstly, What Is Dropshipping?
Dropshipping is a type of ecommerce business model that allows entrepreneurs to run an online store without stocking any product.
However, despite the convenience of this business model and the often incredible success stories promised by its proponents, debate continues as to whether dropshipping can really end up being more trouble than it’s worth in certain circumstances.
In this article, we’ll be demonstrating 5 reasons why you should stay away from dropshipping:
1. Low Margins
The profitability margins for most dropshipped products tend to be very low; often not enough to make profits once shipping costs have been taken into account. Many entrepreneurs end up losing money after taking marketing expenses into consideration too.
Especially when they didn’t make considerations and their profit margins mapped out properly.
The more reason every business owner must first deepen himself or herself in knowledge before committing advertising budget on any business.
2. Lack of Quality Control
Dropshipping suppliers typically send all their products straight from the manufacturer, which means that there is no quality control before they arrive at your customer’s doorstep. Poorly made goods or unusable items can tarnish your reputation and lead customers away from trusting your brand again.
How do you solve this?
Simple, we recommend that every entrepreneur should buy first sample to oneself. Check it complete, before starting to sell the item. We allow you to enter our offices in Lagos and Benin to check items at will.
3. Long Shipping Times
Because many drop shipping third parties aren’t consistent about exactly where orders will be sent from (sometimes multiple countries/warehouses overseas). This usually leads to delays via longer distribution routes than local domestic companies offer, making delivery timelines frenzied messes.
In fact, this is the major reason why dropazz had to situate a warehouse in the USA for its users, and even users get just about 72 hours delivery within African countries like Nigeria. And 7 days delivery max to your USA customers.
4. Running Many Stores
If someone claims to run 3 or more stores successfully under the same roof utilizing one software platform that promises success, it raises suspicions.
You cannot chase two rats at the same time and be successful catching one. In most case, you lose both.
Instead of run multiple stores, especially in one market, it is better to go for a general store, that holds multiple products. Though this option is highly not recommended.
CLICK HERE TO SEE WHY NICHE STORES ARE HIGHLY RECOMMENDED OVER GENERAL STORES.
5. Unrealistic Promises
There is no easy money in ecommerce or any business online/offline – period! Any entrepreneur looking at starting this type of business needs to understand that any profit will take time and dedication from their end; if they’re being promised unrealistic earnings through fast-money tactics then they need to reconsider whatever offer or scheme they have been presented with.
This is why in dropazz we don’t in anyway keep things related to the work ethics or even knowledge from users. The core reason they are always super successful.
Summary
Of course dropshipping is the best ecommerce business model, which is why amazon, jumia etc are actively using the same model to command billions on yearly basis.
And there has been no history of big company so far that closed down or folded that uses dropshipping model, even in the face of state wide economic collapse.
Just be aware that you need to treat this as a business not like a scheme to hit-and-run.
To avoid these scams, especially the number 3 and 4 reasons given above, it is advisable you use a reliable dropshipping software such as dropazz.com that not only helps you get your own e-commerce store, it also provides you with products in it’s USA warehouse storage (for international dropshipping) and local warehousing in Lagos and Benin city.
Also you get apt training on everything dropshipping without paying any fees or upsells.
What other reasons do you personally think makes dropshipping a scam? Drop your answers in the comments box below.
Written by Mercy
Experienced and Result Driven Customer Rep