Dropshipping cons
Of course, such a lucrative business model comes at a cost. Let’s see what that is.
Low profit margins
While dropshipping can make you money, you’ll have to work at it to get there.
Since it’s such a simple business model, many dropshipping businesses compete with you and sell similar products. You might have to lower your prices to win over the customer, which means less profit.
When you fulfill your orders on demand, you only pay for the products you sell. However, paying for each product individually creates higher product costs as you can’t get the usual wholesale price.
With comparatively higher base prices and competitors already trying to undersell you, there’s little room left for good profit margins. However, with careful marketing and strategy, you can still succeed in the dropshipping business.
Limited product choices
Dropshipping allows you to switch between different niches, products, and designs easily, but there’s a small catch: you’re dependent on your supplier’s product selection.
For instance, if you sell necklaces and bracelets but want to add earrings that your current supplier doesn’t offer, you face a dilemma. Your options are to skip selling earrings, wait for your supplier to stock them, or add another supplier who offers the desired earrings.
While the third option meets customer demands, managing multiple suppliers can be challenging due to different shipping times, pricing, billing, and return policies. This complexity increases with each additional supplier, potentially leading to inventory issues and negative reviews.
Lack of control over production
Most people don’t like putting their business’ fate in others’ hands. But that’s exactly what you’ll have to do when running a store with dropshipping.
Your business depends heavily on your dropshipping supplier’s integrity and quality of work. If their shipping times get longer, their products become faulty, or their customer support starts slacking off, it’ll directly reflect on your business.
Plus, you can’t micromanage the supplier to ensure they get everything right. What you can do is perform thorough supplier research before starting a business to make sure you won’t have problems in the future. Once you start working with a supplier, check product quality by regularly ordering product samples and following your customers’ reviews.
A lot of responsibility
Even though you’re not in control of what goes on in the manufacturing process, your customers still hold you accountable if something goes wrong. In the end, it’s going to be your reputation that’ll take the hit and not the supplier’s.
Your customers put their trust in you, not your manufacturer. So when a dropshipping supplier sends your clients a damaged product or delays shipping, your customers will blame you. Take ownership of your products and reply to customer concerns and reviews. If the feedback gets too negative, consider switching to another supplier.
While the cons of dropshipping might seem tough, they’re manageable, so I hope you’re still motivated to start your online store with dropshipping.
If you’re still up for it, let’s get to the rewarding part—making money.
Is dropshipping profitable?
Yes, it is. But it’s not a get-money-quick scheme, so you’ll still need to do the work to succeed. Here’s what you can do to ensure your dropshipping business thrives.
Increase product value
How do you stand out from the competition and become customers’ first choice? Make a better offer. You can do so by:
-
Offering free shipping or adding freebies to orders
-
Including discount codes for future purchases
-
Customizing products using services like Printful for unique offerings
The first two strategies may require increasing product prices but can set you apart from competitors. However, product customization with your designs will let you sell a more niche product at little to no extra cost.
Still not sure if dropshipping is profitable? Here are top 10 dropshipping statistics you need to know to make up your mind.
Learn more: Dropshipping Products With a High Profit Margin
Pick a specific dropshipping niche
Avoid selling everything to everyone. Instead, identify a niche that aligns with your interests and values, like custom pet accessories for dog owners or motivational home decor for remote workers. Focusing on a specific market can make your brand more distinctive and personally fulfilling.
Source: 
Product customization process using Printful’s Design Maker.
