For most businesses, about 80% fail within the first couple of years. Only about 3% last longer than 5 years. However, for eCommerce, the rate is much higher. It’s estimated that 96% of dropshipping stores fail with the first 6 months. To be part of the 4% successful dropshippers, you need to know the reasons these dropshipping stores fail, and ultimately avoiding it. Pay close attention, this is a deal breaker.
#1 – Going Too Generic
Consumers aren’t going to buy everyday items from your store. Nobody is going to watch your ad and buy things they can buy from their local grocery story i.e. toothpaste, toilet paper, etc. The solution to this is to sub-niche your store. Let’s take “watches” as an example. If you just sell watches, no one would buy it because it would be generic and you aren’t bringing anything unique to the market. If you sell “wooden watches” for instance, this is not your everyday item and an ultimate example of sub-niching. Consumers would then be interested in your store because you’re bringing something new/unique to them.
#2 – The Shopify Business Mindset
This is a vital problem. There are a lot of Shopify “Gurus” who promote obviously fake ads talking about how they made $30K in 1 month to try to sell their course, that results in most people going into dropshipping expecting it to be an overnight success. Even though Shopify has made everything so simple and easy to use, you can’t blame them. What you need to know is that it’s still a business, you need to let it take time, you need to give it love, you need to allow yourself and your business to fail, and then keep at it and stay consistent. What time gets rough, remember that this is still a business and you need to treat it as such in order to succeed.
#3 – Not Trying Enough Products & Adsets
Some dropshippers try a few products and spend money on ads just to realize that they’re losing money without getting sales. The solution is to keep going until you hit that success product, you’re going to hit what’s so called the snowball effect. The snowball effect basically means that you make more money from sales than you spend on ads. For instance, you spend $10 on ads, and make $30 from your sales. Then spend $20, and make $40. It keeps going and going, and that is what’s called the snowball effect.
#4 – It’s Not Me – It’s You
Newbie dropshippers think their passion will make them a millionaire. The truth is, no one cares about your passion, no one cares about my passion, everyone cares about their own passion. This isn’t a feelings-based business, this is a numbers-based business. What you need to do is find out what other people want, and sell the products they want to them. If the products you’re selling interests you, but doesn’t interest others, no one will be buying it. This may sound harsh but you have to take this to heart. Put the right product in front of the right audience, and there you have a business. It’s that simple