When you get started in the drop shipping business, you may discover that there are a lot of roadblocks in your way. While drop shipping is a good business to get into, it’s not for the faint of heart. You’ll need to look past some of the problems, and keep moving in a positive direction. It’s one reason not everyone is doing it. The profits are good, but the process of finding a good company and the problems you can have even with good companies can be a deterrent.
Too Many Scam Companies
When you do a Google Search for “drop shipping companies” or “dropshipping companies” or “wholesale companies that dropship,” you’re going to be faced with information overload and a lot of scam companies out there just to take your money.
Finding Good Dropship Companies
You can find drop shipping companies by finding a list of certified drop ship companies created by someone else. WordwideBrands.com is such a company. You pay one fee for lifetime access to the list.
Clunky Ordering Process
Some drop shippers cause problems with ordering by having a clunky process that isn’t integrated with your website. You may have to fax orders, call in orders and other things during hours that don’t work well for you, thus slowing the process for your customers.
High Shipping Costs
Some drop shippers have really high shipping costs that can eat into your profit margin substantially. Be sure that you read all the fine print and totally understand how everything works with the companies you work with.
Poor Order Tracking Process
When someone makes an order, they like having a tracking number as soon as possible. Some drop shippers are super slow with sending tracking numbers so that you can help your customers.
Bad Inventory Updates
Nothing is like having a customer order something, then finding out the item is out of stock and worse, never coming back again. Then you have to tell your customer and refund the money.
Hidden Processing Fees
Some drop shippers have hidden fees that you don’t see coming. Be sure to read all the fine print in the paperwork that they give to you. They have to disclose all their fees up front so that you can price your products accordingly.
Bad Return Policy and Fees
Some drop shippers care more about their bottom line than the customers’. This is terrible for you because ultimately it’s you who will look bad instead of them, since they’re silent in the background.
Even though you may face these issues with drop shipping companies, having a drop shipping based business can be very lucrative. You just need to do your due diligence before working with any company and always follow up immediately with problems. You can and will be successful if you stay informed and aware.