7 Reasons People Fail at Dropshipping

in this one then I want to show you the 7 biggest reasons why I see beginners failing at dropshipping since I started posting blogs then about Shopify and dropship and Facebook ads etc on YouTube I get to talk to quite a lot of people on a daily basis about what they’re currently doing usually people will reach out and send me a message when something’s going wrong and it’d be a question on how to fix it or they’ll ask me something like what am I doing wrong can you have a look at my store etc so what I wanted to do them was callate all the biggest reasons I see people failing go through them in this blog how to solve them so ultimately help you guys out then so you don’t make these same mistakes and you find a bit more success in 2021

One of the biggest reasons I see people fail in one of the biggest reasons why people lose so much money in fact is because they don’t get any feedback on their store before they start running marketing campaigns whether it’s Instagram whether it’s Facebook whether it’s Google it doesn’t matter if you have a crappy store a poor store that looks a bit dodgy or hasn’t got the required information or there’s spelling mistakes or Chinese references whatever it is it doesn’t matter how many people you drive to your store it could be 10,000 people it could be 10 million if your store doesn’t come across as trustworthy then you’re going to get 0 fails and this is the number one reason why I see people failing the first thing I’ll do when somebody sends me a message on Instagram saying that they’re not very profitable or they’re not getting any sales and the first thing I’ll ask them is to send me their store link because it doesn’t matter you could send 10 million people 10,000 people the number doesn’t matter if you haven’t got a very decent store if it’s not trustworthy doesn’t have the correct information then you’re going to get zero sales so where do you get feedback on your store then if you don’t have many people to talk to or anybody that your work with there are a few places in which you can go number one is to certain Facebook groups for example I run a shop for Groupon Facebook is free to join there’s a link in the description below and I freely let people post their stores in that page in the groups I’ve to get feedback on it and it’s a pretty decent bunch of people too and you do usually get some pretty good genuine feedback so that’s one place to go number two is to ask your friends and family now when you do put their store in front of you don’t just make sure you make it clear to them that they won’t offend you if they give you bad feedback so for example then if you show your mum the chances are she’s never gonna say a bad word about you and she’ll say it’s really good even though it might look like rubbish so just try and get some fair feedback on your actual store number three is you could just run some ads like spend twenty to fifty pounds running an engagement campaign and just ask genuine people that you’ve never met before to give feedback on your store in return perhaps for some sort of voucher or discount because people who are strangers to you they’re gonna give you their honest feedback and they’re going to be your customers too so they’re the perfect people to get that feedback from kind of like a side tip off the back of what I’ve just said is that when you run in ads regardless if you’re trying to get purchases etc always be engaging with your customers and ask them what they think about the products etc there’s no better feedback about anything than the people you’re trying to sell it to and then the fourth and final thing is forums if you’re part of certain forums you might have space or you might have time to post it in there and ask people for their feedback and in the fifth one against a shameless plug is you could join my econ Academy everybody who joins does get a free store review just as a way for me to check it over make sure everything looks good before you start spending money on ads like I said you could spend ten grand on ads but if your store doesn’t look very good you’re not going to make any sales moving on to number two then is no social proof now this is something you won’t hear many people talk about but it’s it’s really really important for the following reasons really is your ads are essentially the first impression when you meet somebody so when you meet a stranger the first impression they tend to make their mind up about you something like in the first four seconds and it’s the same with your ads people are gonna see your ad they’re gonna click on it they’re going to go to your Facebook page and they’re gonna build that first impression and make up their mind about you within the space of a couple of minutes so it’s really important then that you build social proof if you have the budget to do it now it is optional but the more social proof you’ll have the better your ads are going to convert it’s a fact so that’s not just me saying that people follow people at the end of the day just give you an example then there’s two ads here for the exact same product it’s for this anxiety bed does your dog does your dog suffer from separation anxiety and then these guys kind of word it in a different way but essentially it’s the same thing this ad over here has six reactions five comments this one over here has 40,000 reactions and nearly 10,000 comments which one do you think people are going to trust more it’s going to be the one with the most engagement because it comes across as trustworthy if more people have seen it more people are likely to trust it so methods to build social proof then how do you actually go about doing it number one is you can run page likes campaigns that is an actual marketing campaign objective you can set up in facebook and a good kind of ad set then we’ll be able to achieve page likes for about 10 P and 10 cents so if you just dedicate if you dedicate $100 for example then you can get a thousand likes if my math is correct number two is engagement campaigns you can get engagements for about penny sometimes less depending on the ad obviously so it’s a really cheap way to build up engagement super quickly number three is just make sure you use the same post ID for every single ad I’ve done a blog on this topic before but it’s a way of just kind of collating and compound in all the engagement you get into one single ad in the beginning with small budgets it’s an absolute must in my opinion number four is you can buy followers on Instagram again if somebody goes on to your Instagram page and you’ve got like three followers versus say ten thousand ten thousand followers I believe will cost you about $50 but in my opinion it will make a huge difference so if you’ve got the budget to do it then by all means I would recommend it only then if you haven’t got the budget to do it that’s absolutely fine just make sure you explain it to your customers because they won’t necessarily have they won’t put two and two together unless you tell them so for example then with this ad here what the company or the page running this should do is the first comment should be we are a new business any questions at all please do let us know and then at least that way people know there are new business and won’t expect to see the big numbers that they might see from another company move not to point number three then is unrealistic expectations too many people are impatient they try and go not to they try and do six figures in their first month which is just crazy unrealistic now I’m not saying it’s not possible it is but what I’m saying then is that the majority of the people won’t see those kind of results please please please don’t be disheartened if you don’t do say 10k in your first month it’s completely normal if you try and do things too quickly you’re only going to end up wasting a lot of money it’s going to lead you to being disheartened and it’s going to lead you to to given up essentially so my advice then would be to focus on learning and testing for the first three months and you don’t have to spend very much just enough to kind of get to grips with things and just ease yourself in slowly so these screenshots here then if you’re wondering where they’re from these are the first four months of me being involved with dropship in my first month I did 360 pounds twelve hundred three and a half grand and then that fourth month shut up all the way up to just under 20 grand now if I was like most people and because I weren’t seeing very good results in the first three months weren’t very profitable I might have given up say after the second month or even after the third month and then I wouldn’t have been able to achieve that fourth month which is that essentially that one month sent me up to have enough money in my bank account to to quit my job and start doing dropshipping full-time so you never know when you’re going to be on the brink of that one product and that really can make all the difference so be patient and don’t have unrealistic expectations and another side note on top of that is don’t believe everything you see on social media moving on to the next one then is poor content on pages so this is a really quick one but a really important one and the amount of people I see and fail because of this or it’s one of the things that contributes towards that failure and as it says here then your pages add your first impression as well so the amount of people who will go from your ad to your Facebook page to check you out so you see what you’re all about basically and see if they can actually trust you it will be a lot of people so if you haven’t got a good Facebook page or good Instagram page it’s going to let you down tremendously so what you want to do then is just make sure that the last few pieces of content half a dozen pieces of content isn’t a lot to come up with and post on your page but make sure it’s valuable content that people will want to follow people will want to like your page as result and ultimately or make them trust you and more likely to buy from you so essentially give people a reason to like your page and want to follow you as it says here then kind of a side note organic traffic is king the only reason you have to run a facebook ads is because your store wouldn’t get any traffic otherwise whereas if you had a really good social media Facebook page and Instagram page that had say a hundred thousand followers on each a single organic post would bring in some customers so give people a reason to want to follow you and stay with you don’t just focus on that one sale per customer so in terms of the content you can post on your pages number one is memes memes are funny they get people laughing they get people smiling to get people engage in sharing with their friends and people will want to stick around to see the next one that you post number two competitions again everybody loves a freebie to give people the opportunity if you run and make it public that you’re going to do weekly competitions then again it gives people a reason to stick with you and and follow your page essentially number three is blog posts so for example then if you’re in the kitchen niche you could post links to certain blog posts that go through certain recipes and then within that recipe you can have upsells that link to the products you’re trying to sell so it’s a much softer way of selling and it’s a good way of getting people wanting to follow you but number four is reviews again it comes back to the whole social proof thing if somebody comes onto your page and they see loads of different reviews from previous customers that is a good sign because P it will show that people can trust you because there’s been pre-existing customers and in the final thing is discount codes and vouchers again like I said everybody loves a freebie give them a reason to stick around and on the chance that they can win some sort of discount or even a free voucher is a good enough reason for them to want to stick around as an example then of this screenshot as you can see here these this is not what you want when people come onto your Facebook page if the last two posts are you update your profile or you update your cover photo then that’s this doesn’t give a customer any reason whatsoever to wants to stick around or for them to trust you either so put some quality content on your social media platforms number five is boring and rubbish products again another popular reason I see people failing is they just go for the most boring bland and cheap pieces of rubbish that people just don’t want to buy anymore so to go through the notes and Facebook survives on content if Facebook didn’t have content if there was no content on Facebook then nobody would use it so what that means then is that you’re not only in competition with other advertisers advertising in the same space as you but you’re competing with mean pages because they’re going to be on the same newsfeed you’re competing with their friends because their friends are gonna be posting on their newsfeed other apps apps on their phone that might send them a notification that distracts them so essentially you’re competing for the customers attention and boring cheap crappy products will not get that attention and you will not succeed as an example then of a good interesting product versus a boring cheap crappy one and we have this rocket spaceship night lamp here which is pretty cool in my opinion in fact I think I’m gonna buy one of these myself in my office and then we have this skipping rope here everybody’s seen a skipping rope they’re really cheap there’s nothing really exciting or new about a skipping rope so which one of these two products do you think is going to get the most attention and we’ll grab a customer’s attention on Facebook it’s going to be this one here as a couple of kind of side notes then go for interest in high quality products that you can sell for thirty pounds plus probably because facebook ad CPAs are increasing the more room you have to account for that then the better off you’re going to be the more profitable you’re gonna be etc moving on to the next point the last couple now is not legit the amount of shady people that I see when in stores it’s the reason unfortunately y-drop shipment has got bad name but if you stay legit there’s no reason why you can’t run a consistent profitable and sustainable business in the long term so if you’re not operating legit if that makes sense then your time will be limited so ie it’s going to catch up to you in the end are the shop fire gonna ban you that’s usually like the last resort but most likely then either your Facebook account is going to get banned or PayPal are going to hold your phones you’ve seen it many times before and the only times it happen is when people aren’t being legit and aren’t bring in a legitimate business essentially so how to avoid getting banned there number 1 register your business do everything properly from the beginning number 2 have a business address and telephone number this will also help with social proof the amount of stores I see that don’t have an actual physical address or a phone number a customer coming on that sees that it looks shady like if they don’t know where to go or they don’t see somewhere have no promises or somebody they can ring what if in case they have a problem then it looks shady and people aren’t going to trust you number three is treat customers fairly if something is going to take double the quoted delivery time or a rise broken whatever it is treat customers fairly treat them within the law giving them their money back because ultimately what’s gonna happen is they’re gonna report you to PayPal they’re gonna report you to Facebook and again it’s just gonna result in you getting banned or they’ll just go and all your social media pages and post that you’re a scam and that will scare off any future potential customers as well don’t so trademarks or illegal products now you would think that that’s pretty straightforward but the amount of people I see selling fake Yeezys or fake Gucci or fake supreme and then they send me a message saying my facebook ad accounts being banned how do I get it unbanned just a bit of common sense I guess next point is stick to the Facebook ad policy just google it it will take you straight to it and it’s not a lot to read but once you have read it you’ll know exactly what products you can and can’t advertise and then finally create your own content again you can get away with it for a certain amount of time but if the original content creator finds out that what you’re doing they’re gonna report you to Facebook you’re gonna receive a cease and desist and both of those things are something you don’t want to get involved in moving on to the seventh and final point

Another biggie this is something that I see honestly about 90% of people not doing they have no budget or financial plan you need to track your finances properly and have a plan of how you’re going to spend your money now you might think that that’s an absolute load of rubbish but it’s not I’m full of following reasons really number one is so you know if you actually operate on a profit or not the amount of people I speak to that will switch ads off or they’ll try and scale ads that they think are profitable or switch ads off that they think aren’t profitable then it turns out they are you just losing money you’re literally just throwing money in the toilet and then flushing it down the drain point number two is so you don’t end up committing more and more money to something that as a sinking ship if you set yourself a budget of say a thousand pounds and you’re testing the products and your 300 pounds into that that’s 30 percent of your budget gun and it will it will force you to budget a bit more cautiously spend your money a bit more wisely and ultimately it’s gonna be help you be more successful and as it says there as I’ve already mentioned it will force you to spend it conservatively I’ve just given you an example in of how I used to do things this is a screenshot from the profit and loss spreadsheet and that I used to use so every week I would come on put my numbers in and it would tell me exactly how much money I was making or how much money I was losing and having it like this out in front of you then you know exactly how much money you’ve got to play with how much you can commit how conservatively you have to be if you know even if you need to scale things back there’s just so many advantages to truly knowing how much money you have to play with

Hopefully, this article was helpful in looking into some of the reasons why people fail at dropshipping. If you are interested in an amazing dropshipping product that is just coming out, we have a great article written on kibo code quantum, you can give it a look “here“, and if you want to go through some interesting facts about dropshipping ioscm has a great article on it, “here” is the link

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