Can You Really Make Money with Dropshipping in 2020?
(7 Reasons Why I Quit)
I bet that in your search for the best way to make money online, you’ve come across the term “dropshipping” more than once.
What’s this thing about?
Well, basically it’s a method with which you can create your online store …
Selling physical products without having to buy them
Sounds cool, right?
Some of the bases for the popularity of dropshipping are also:
- You can quickly and easily create an online store using Shopify
- You can get customers as soon as you have the store set up by promoting it with FB ads
- Want more traffic? Just increase your investment in FB ads!
- You can adjust your products to trends easily.
As you already know, wherever there’s money, there I am (it’s almost a super power)
So I tried to give it a try and created my own ecommerce store with Shopify.
But even though I was happy with the benefits, the time I had to invest to get the business going left me EXHAUSTED.
I got $30K revenue in just over 1 month, but to think that I had to go through a hell of logistics, suppliers and customers if I wanted to keep earning that money …
It’s not what they tell you when they talk about financial freedom.
Live a laptop lifestyle, work a few hours, and make huge amounts of money.
That’s what we all really want, right?
The only business model that allowed me to achieve that was lead generation.
I can earn as much (even more) money than dropshipping, but working less than 4 hours a week!
If it’s my #1 recommendation, it’s because I can sit down, relax and write this post while the zeros grow in my bank account…
Thanks to some online ad billboards that took me an afternoon to set up and that are still active 24/7.
Dropshipping is much more complicated.
So in the end I quit, and I’m going to tell you in detail why I did it.
7 reasons why I quit dropshipping
1. Undesirable providers
There are trusted providers on platforms like Aliexpress or Amazon, but there are also some very “dubious” ones.
Dropshipping in general requires a very professional supplier, as you’ll be delegating your customer’s satisfaction to him.
If your supplier doesn’t get it right, your store buyers won’t have a good experience and will rule you out for future purchases.
But choosing a good supplier is probably the most important and most complicated aspect.
Like it or not, this aspect can make the difference between whether your store is successful or not.
I’ve been on the wrong side lots of time, and I got tired of being responsible for their scams.
2. Excessively long delivery times
Delivery times are eternal.
Lots of platforms offer very low prices, but in exchange it can take up to several months to make deliveries.
This may be worthwhile for some clients, but not for many others.
To avoid complaints -as much as possible- when dropshipping it’s essential that the customer is informed.
And that means that you have to take A LOT of your time to explain to them how the process goes.
You’ll never -repeat with me: never – have to create false expectations for your customers if you want to avoid problems with logistics.
3. Misleading products
Sometimes the products aren’t what you expected.
It has happened to all of us, right?
You buy something in a Chinese ecommerce store, you wait several weeks (or months) for it to arrive and, when you finally receive it, it has nothing to do with what you’d seen in the photographs.
As the cost of these products is usually ridiculous (and it’s likely that the supplier doesn’t speak your language well), you prefer to leave it be and not ask for your money back.
But you can leave a complaint or an inflammatory review on their page, to avoid misleading more people.
When dropshipping the recipients of the products are your customers, not you, which can further complicate the situation.
When your customer receives the article and sees that it isn’t what he expected, complaints and bad reviews will go directly to your email and to your website, compromising future sales.
4. Low-quality marketing material
In many cases, it’s not only the products that have low quality.
We can also find that the material that the manufacturer gives you to promote their articles (such as photographs and descriptions) is quite deficient.
To deal with this, the best solution is to make them yourself.
Acquire a sample of each item that you’re going to sell and unleash your most advertising side.
What’s the problem with this?
- To do it well, you will, of course, have to get some photography knowledge (or hire a professional photographer).
- In addition, you should write the text for the product sheets yourself if you see that the one provided by the manufacturer doesn’t “sell” too well.
It’s a remarkable amount of extra work, but necessary if the provider you buy from doesn’t stand out for the content it provides.
This is one of the main disadvantages of dropshipping: to have an attractive store, many times you’ll have to invest more time and money in making the product sheets as striking as possible.
5. Language problems
Let’s face it:
The language barrier is a reality with China.
Although more and more businesses have employees who speak English, it isn’t uncommon for there to be “confusion” due to messages that haven’t been understood well.
And I’m not just talking about confusion in the emails or in the calls you send.
When a supplier doesn’t speak English well, we can find incorrect product descriptions and end up selling items that aren’t what we expect.
6. Low margins
In dropshipping in general, the margins aren’t too high (since the supplier frees you from many tasks that would otherwise take time and money).
Also, delivery times and quality of items are often not good, so you should keep prices low if you want to sell.
Therefore, you’ll need a lot of traffic and a lot of sales to be able to get interesting benefits.
7. We won’t have traceability of shipments
This aspect is closely linked to the second point: the logistics of shipments coming from China are quite poor.
In addition to taking weeks or months, we’ll practically never know where our order is.
They won’t give you a code to see the status of the shipment and if a customer asks you when their order arrives, you won’t be able to give them any answer.
Why Lead Generation is the key to your business
As you see, dropshipping isn’t a boat trip.
It’s a nice temptation if you’re broke as hell, and it may make you earn some good amount of money…
But it doesn’t have anything to do with your initial dream:
Work whenever you want, from whenever you want, and make TONS of money.
What do to then?
How can you achieve your financial FREEDOM and start making a 6 figure income?
Lead generation is the answer.
It’ll always be.
Think about it this way:
Right now, many businesses are struggling to close a sale.
Some sellers are even running out of momentum as they believe they’ve reached the upper limit of people or businesses to sell their products or services to.
But the truth is, they aren’t looking hard enough or in the right places to find new trades.
A very common misconception about sales is that you only cold call as many people as possible until you get a mere maybe.
In reality, finding the correct groups or target where to offer something is as important as the sale itself.
And that’s when you come in.
Years ago, leads were developed in meetings, cold calls or buying lists;
But as a smart person, you know that they’re flawed processes now, since although they generate some opportunities, the degree of effectiveness is no longer substantial.
Thanks to the advancement of technology, today it’s extremely much easier to target and acquire leads with less intrusive, more enjoyable ways and that involve half the time invested.
And I’m talking here about online ad billboards.
Imagine being able to set up online billboards for a business in less than half an hour.
That asset will stay active 24/7, getting leads for that business and thus, making real money for them.
You don’t even have to be actively working to drive those leads!
Now you’re seeing why I said this business model is way better than dropshipping?
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