Top 3 Myths with Drop Shipping

Drop Shipping Mythgs

Many people hear about drop shipping and think that it is the answer to their making money dreams. But often they fail because they don’t consider everything there is to know about the business. Learn the top 3 myths associated with drop shipping.

Myth #1 – It’s Easy

The concept of drop shipping is very simple. You simply put an item up for sale online, wait for someone to buy and then you have the supplier send the item direct to your customer. Sounds pretty easy, right? The problem is other people are doing exactly the same thing so you have a lot of competition to contend with. Plus, there are many sellers who are not doing drop shipping who can out price you during the sale. They get volume discounts and as such can offer a better price to customers and can often get better shipping rates.

Myth #2 – There is No Risks Involved

When you don’t have to buy up truck loads of inventory you certainly don’t have the risk of being stuck with products that don’t sell. But that doesn’t mean there are no risks associated with drop shipping. The biggest risk that you face is the supplier runs out of product at the time of sale. The best way around this is to make sure you purchase a couple of the same type of items that you are planning on selling. Keep them on hand in the event the supplier runs out.

Myth #3 – The Supplier Handles the Customer Support

One big problem with drop shipping is the seller (you) is removed from the sales funnel. You collect the cash and then have somebody else process it for you. This is good until there is a problem with the sale. Many people mistakenly believe that the supplier is responsible at that point in time. Not true. You must make sure that you provide the same kind of customer service as if the product was your own. The customer knows the point of contact is you.

But there is something even more subtle going on here than people realize. If you let in on who your supplier is, why wouldn’t your customer simply go to the supplier to buy for future purchases? Many drop shipping arrangements come with what is known as white labeling. What this means is that the supplier will send the products out with your packaging as if you had the product and sent it from your warehouse. So when you tell the customer to contact the supplier directly, you have just shared your source and perhaps given up any potential for future sales with that customer.

Drop shipping is a viable business model. But you need to be aware of how it works and learn all the dynamics of the business.


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