4 Common Problems With Drop Shipping 

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1. There will be much competition and low margins to start. (You will make money)

Solution: It's true. Products that can be drop shipped will spawn a lot of competition. Usually this will lead to cutthroat pricing and diminishing profit margins, making it hard to build a viable business.

To be successful, you typically can't compete on price. Instead, you'll need to offer value in a different way, usually through top-notch product education, service or selection. For more information on how to pick a profitable niche and add value, see my video http://youtu.be/82VpItCutzA or visit http://www.salehoo.com/redirect/jot

2. Syncing inventory is difficult & leads to out-of-stock items.

Solution: The best way to mitigate this problem is to work with multiple suppliers with overlapping product lines. It's dangerous to rely on a single supplier. Having two suppliers doubles the likelihood that an item will be in stock and available for shipment.

Many sophisticated suppliers offer a real-time product feed, and you can use a service like salehoo to find verified suppliers and wholesalers. http://www.salehoo.com/redirect/jot

Eventually, you'll sell a customer an out-of-stock item. Instead of canceling the order, give the customer an upgraded product for free! You might not make much -- if any -- money on the order, but you'll likely build a loyal brand advocate.

3. It's hard to sell products that you never see.

Solution: In today's world, it's possible to become an expert in just about everything through information online. Selling products from manufacturers with detailed websites will allow you to become intimately familiar with a product line without ever having touched a physical item. And when you do need to answer specific question about a product, a quick call to your supplier or manufacturer will give you the answer you need.

You can also buy your most popular items to get acquainted with them, and then resell them as "used" or "refurbished," often recouping most of your investment.

4. Involving a third party will result in more fulfillment errors, mistakes, and logistical problems.

Solution: Even the best drop shippers make occasional mistakes, and mediocre ones make a lot of them. Suppliers are fairly good about paying to remedy problems, but when they're not, you need to be willing to spend what's necessary to resolve the issue for your customer.

One of the costs of drop shipping convenience is the expense of remedying logistical problems. If you accept it as cost of doing business -- and always make sure to put your customer first -- it shouldn't be a long-term issue.

The Final Word on Drop Shipping

Is drop shipping the path to overnight ecommerce success? Of course not. As with any successful online store, you'll need to invest over time in a quality website, marketing, and customer service.

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But drop shipping does provide an easy way to get started and the ability to leverage other people's capital without having to invest thousands of your own. When managed correctly, it can form the foundation of your own successful online store. You can do it just try.

Further Learning

Looking to learn more about drop shipping? Check out my free ebook "How to make money on eBay" a free comprehensive guide that covers everything you need to know about making money on ebay.
Visit my Guide To Drop Shipping Blog: http://guidetodropshipping.com/

Visit my facebook page and learn more dropshipping. https://www.facebook.com/Dropshipping.Guide.Info

Learn more about DSD:
http://dsdomination.com/sp/pro?aid=OttoThompson

Learn how to drop ship on eBay free Guide & lessons: https://ottothompson.leadpages.net/salehoo-how-to-dropship-guide/

Join my INFINii team: http://bit.ly/Like-INFINii

Видео 4 Common Problems With Drop Shipping  канала Otto Thompson