Like all the methods, Dropshipping has its disadvantages. Generally speaking, convenience and flexibility are costly. There are several shortcomings to consider here.
1. Low profit margin
This one is the biggest disadvantage in the field of dropshipping. Because it's easy to start and the cost of management is low, many competitors open stores, sell goods at the lowest price and try to increase revenue. Because they have little investment in entrepreneurship, they can afford a small profit. If you start dropshipping on Amazon while you start shopping at your shopify store, you'll make a thinner profit on this channel.
Usually, these sellers have low-quality websites and poor (if any) customer service, which you can use to differentiate your business. But this does not prevent customers from comparing their prices to your prices. This increase in intense competition will quickly hurt the potential profit margin of the niche market. Fortunately, you can alleviate this by choosing a niche market / theory that is very suitable for dropshipping
2. inventory issues
If you store all your products, it's easier to track which products are in stock and out of stock. However, when you purchase from multiple warehouses, which are also completing orders for other businesses, inventory may change every day. Fortunately, some applications can synchronize you with the vendor today. Therefore, dropshipping can "pass" the order to the supplier by clicking once or twice, and should be able to see how much inventory the supplier has in real time.
Oberlo also allows businesses to take automatic action when the supplier's inventory reaches zero. For example, when a product is no longer available, you can automatically unpublish the product or keep it published, but automatically set the quantity to zero.
3. complexity of transportation
If you work with multiple suppliers - like most didi taxi companies - products in your online store will be purchased through several different dropshipping companies. This complicates your transportation costs.
For example, a customer orders three items, all of which can only be obtained from different suppliers.
4. Supplier's errors
Have you ever been accused of something that is not your fault, but you still have to take responsibility for it?
Even the best dropshipping service providers make mistakes in fulfilling their orders - you have to be responsible and apologize for that. Mediocre and low-quality suppliers can be frustrated by the loss of goods, wrong transportation and low-quality packaging, which may damage your corporate reputation.
【Source text: by report】
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