Submitted by: Allan Morgan

Drop shipping can be a very easy and rewarding venture to pursue. Also, drop shipping can be a troublesome and elusive monster when falling into common pit falls. There are many dangers with drop shipping that are tough to spot and have the potential to damage your reputation as a trustworthy business.

The biggest potential for profit in marketing products online is in buying bulk. Therefore the price in drop shipping reflects the work involved in packing and shipping the products themselves. Make sure your end pricing reflects competitively otherwise you won’t make any sales. Its tough to decipher profit margin when using drop shippers and it is very important to thoroughly research the product itself before putting it up for sale on your site.

Make sure you are using only one drop shipping company per website. The risk with this is in the possibility of your customers ordering many products at once. If your customer buys 4 products from 4 different drop shipping companies that you use they will not be willing to pay 4 different shipping rates and more then likely your shipping calculator will not reflect the end price of shipping once each parcel is sent out. Additionally, when a customer receives 4 different boxes from 4 different places it just doesn’t look very professional and can hinder your chances of repeat sales.

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With drop shipping customer support can be an issue. Often a customer will request additional information about a specific product, if you do not have the info available you must contact the drop shipper and wait for it to be sent to you, thats if they even will. The time in between can send a customer to another place to buy. Also, if this is becomes a frequent request it can be very time consuming. An easy fix is to post up more information about the product in question.

Competition issues are abundant in drop shipping. A lot of people are trying their hand at it and on eBay especially the market for a product is typically saturated with bulk buyers so you run the risk of being invisible to buyers due to your price having to reflect some profit for you.

Another big disadvantage is out of stock issues. When your customer buys a product from your site it is typically impossible for you to track your drop shippers inventory. Refunding money a few days later when your drop shipper contacts you to say that item is out of stock can be a messy situation and leave no chance for that customer to come back to you. Whenever possible the best suggestion is to have a few of each product you sell a lot of on hand to send out if this problem comes up.

Overall, just as in any business, there are many advantages and disadvantages in drop shipping. The best rule of thumb to follow is to buy into a guide for information leading you to potential success. Make sure any information you purchase to come with a guarantee. The best example is DropShipping4Idiots.com because the team over there have built there business around providing useful and viable information. Their success relies on the quality of their product just as most businesses and I find them to be a trustworthy source for getting started in drop shipping.

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Source:

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