Business

7 Reasons Why Drop Shipping Businesses Fail

In this post, we’ll be discussing several reasons (seven, to be specific) as to why eCommerce businesses fail and what you can do to avoid that fate….

Published

3 years ago

May 18, 2021

Manvendra Chaudhary

7 Reasons Why Drop Shipping Businesses Fail

E Commerce is a land of opportunity for anyone looking to make their mark on the digital world.

It’s a wonderful way to expand your business. Like other industries, eCommerce has its version of the popular niche: dropshipping.

Seeing the rise in digital adoption, many have started their dropshipping businesses and that’s good.

But it is important to point out that there’s a difference between hopping on the bandwagon and going in with a clear and well-thought-out strategy.

Hopping in just for profits is the main reason why many dropshipping businesses fail and rightly so.

Research is the most important element in this business and if you don’t analyze other businesses and your niche, you’re cooking up a recipe that’s bound to fail.

In this post, we’ll be discussing several reasons (seven, to be specific) as to why eCommerce businesses fail and what you can do to avoid that fate. So, let’s start, shall we?

Also Read: 5 Best Practices For Small Businesses In 2021

1. Poor Marketing

This is the first mistake beginners make. Not knowing what to sell, they go to the product that’s the most popular or choose the wrong niche altogether. In both scenarios, they fail to take into account the marketing effort required for selling in the first place.

Besides making a calculated decision on what you want to sell, you should also search for a niche that’s closest to your comfort zone. It’s not just limited to raking in profits, you also need to have something you’re proficient at. To each his own, indeed.

The reason we say that is because once you have a grasp on what you want to sell, you can sell more rather than less.

In addition to the right niche, you should also focus on the audience you’re selling to. Selecting the right demographics for your store helps you sell to your customers more efficiently and with the right message since a marketing message for people in their 40s might not sit right with young adults.

2. Zero Patience

Patience is the key element when it comes to dropshipping and business in general.

Most individuals get on the dropshipping train thinking they’re going to make the big bucks as quickly as possible, but that’s not the case. It’s a career and you have to be patient before the cash flow begins.

Being consistent in your sales efforts will pay dividends in the long run. Dropshipping is not a get-rich-quick scheme.

It’s a persistent effort and, if you’re doing things organically, you’re getting more eyes to your business. This, in turn, means more success for your business.

A good first step towards getting eyes on your business is to use promotional material to get things off the ground. This includes lowering your price bar, offering discounts, and promotions.

Combined with a visually appealing website, you can improve your odds or early profits.

All in all, we’d suggest you be patient.

3. Lacking Resources

Dropshipping is oftentimes made out to be a low-investment high-return game.

While the number of resources required is generally less, people are misled to believe dropshipping doesn’t require any investment at all.

If you’re looking to set your store apart from the fray you need to invest in website development, design, sales, and marketing.

It does not matter whether you’re selling B2C or B2B eCommerce products, the more value you add to your offerings and web presence, the better your returns will be.

Also Read: 5 Biggest Ecommerce Crisis and What to Learn from Them

4. Zero Management

The root cause contributing to the failure of eCommerce startups is their failure to manage things accordingly.

As a business owner, it’s easy to get lost in your work and ignore the administrative part of your business.

Bad planning isn’t going to take you anywhere.

To ensure that you’re managing things correctly, you need to keep the people’s interest in your store and fix any issues that arise, regardless of whether they’re technical or not.

At the bare minimum level, you need to provide stellar customer service. Make sure all the problems associated with your customers are resolved and there is little room for error.

Both pre- and post-purchase activities should be seamless and should focus on making the customer satisfied.

If you’re just starting, keep the customer in tune, you will benefit significantly.

5. Damaged Products

Whatever products you have in your store, make sure that you assure them of quality.

Ensuring that your products are quality controlled and delivered without damages or problems can lead to a higher conversion rate for your store.

It’s not just about making that one sale. You also have to ensure that your products are of stellar quality because an unsatisfied customer is more than likely to leave a bad review on your store than a satisfied one.

Combine those reviews and you’re becoming an online spam store with no legitimacy whatsoever, even if you think you are legit.

6. No Effort

While this section might seem old-fashioned, you’d be amazed at the number of people who still have shoddily designed websites.

When you deliver a poor user experience on your website, the more likely it is that no one will visit your store. As a result, you’re left wondering where you went wrong.

Your store should be unique, well-designed, and kept with the customer experience in mind. This ensures that your website is customer-friendly and people will be satisfied in purchasing from it.

Investing in a good custom-designed website is, therefore, important. This can lead to significant benefits down the road for your business.

7. Being Too Involved

Now all of what we’ve discussed in the article usually revolved around general laziness and lack of foresight. On the other side of the spectrum, some individuals are too high maintenance.

Also Read: 5 Best Technologies To Include In A Smart Office

They plan and plan with foresight. Their plans are impeccable but they’re too impatient and start doing everything at once. This leads to burnout which eventually causes them to lose motivation.

Doing so many things at once is hazardous. Take things one at a time and you will, with time, succeed.

Conclusion

So, with this article, we wrap up the seven ways in which drop shipping businesses fail. We hope you enjoyed reading!

World

More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

Published

1 day ago

May 4, 2024

Manoj Nair

More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

Trouble for Microsoft and OpenAI over copyright infringement is not coming to an end, as they face several lawsuits for violating copyrights.

On Tuesday, eight US newspaper publishers sued Microsoft for illegally reusing articles in AI products.

The 98-page long lawsuit further accused the tech companies of attributing erroneous information to the publishers.

The eight newspapers that have filed the lawsuits include the New York Daily News and the Chicago Tribune.

They allege that OpenAI’s ChatGPT used their copyrighted articles to perfect its language models without permission.

The lawsuit was filed in a New York federal court on Tuesday. The publishers claim that OpenAI’s large language models, GPT-2 and GPT-3, were perfected using datasets containing text from their newspapers.

The language models are designed to produce text based on human inputs and reproduce copies of the publishers’ works. Microsoft has been indicted for using newspapers for its Bing search index but seldom provided links to the original articles. Four months ago, The New York Times also filed a lawsuit against OpenAI, accusing the tech giant of using data from its past content. It also asked for consent for usage, criticizing the use of full article excerpts in chatbot responses.

The latest lawsuit filed by the eight news outlets also demanded consent and fair value for using their content to perfect the AI language models. The lawsuit alleged that the AI tools literally regurgitate their content without directing users to the content source.

The lawsuit filings stated, “This lawsuit arises from defendants purloining millions of the publishers’ copyrighted articles without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and (Microsoft’s) Copilot.”

The eight newspapers that instituted the lawsuits are as follows:

The New York Daily News and The Chicago Tribune, both owned by Alden Global Capital
The Orlando Sentinel
The Sun Sentinel
The San Jose Mercury News
The Denver Post
The Orange County Register
The St. Paul Pioneer Press

OpenAI’s Response

OpenAI did not directly respond to the accusations but stated that it takes great care to support the news and media outlets. It also stated it is in continuous partnerships and conversations with various news outlets around the world to explore new opportunities, discuss problems, and seek out solutions.

Microsoft also stated that OpenAI has entered into fruitful partnerships with a number of publishers, which includes The Financial Times, The Associated Press, Spanish conglomerate Prisa Media, and Germany’s Axel Springer.

Net Worth

Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

Published

2 days ago

May 3, 2024

Vishnu Chaudhary

Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

Who is Alan Patricof?

Alan Patricof is a prominent figure in the American investment landscape, renowned for his contributions to venture capital. With a career spanning over four decades, Patricof has been instrumental in shaping the growth of numerous global companies, including America Online, Apple Computer, and Audible. His legacy extends beyond business, with involvement in community organizations and government initiatives.

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Alan Patricof Career

Alan Patricof’s career in venture capital began in the industry’s early days. He founded Patricof & Co. Ventures Inc., a precursor to Apax Partners, one of the world’s leading private equity firms. Later, he established Greycroft Partners, focusing on early and expansion-stage investments in digital media. Throughout his career, Patricof’s vision and leadership have played a pivotal role in advancing the venture capital field.

Alan Patricof’s Net Worth

As of May 3, 2024, Alan Patricof’s estimated net worth stands at over $1 million. His wealth is derived from various investments, including holdings in Boston Properties Inc. and successful ventures in digital media. Despite humble beginnings, Patricof’s entrepreneurial spirit and strategic acumen have propelled him to financial success.

Alan Patricof Age

Born in 1934, Alan Patricof is currently in his late eighties. Despite his advanced age, he remains active in the business world, leveraging his wealth of experience to mentor emerging entrepreneurs and drive innovation.

Alan Patricof Family: Wife and Children

Alan Patricof has been married to his wife Susan for over 48 years. Together, they have three children and seven grandchildren. Family holds great importance to Patricof, and he credits his upbringing and heritage for shaping his values and work ethic.

Alan Patricof Height and Weight

While specific details about Alan Patricof’s height and weight are not readily available, his stature in the investment community is undeniable. Patricof’s impact transcends physical measurements, as he continues to leave a lasting legacy in venture capital and philanthropy.

Also Read: Mike Markkula Net Worth 2024: How Much is the Former CEO of Apple Worth?

Net Worth

Stephen M. Ross Net Worth 2024: How Much is the Chairperson of The Related Companies Worth?

Published

3 days ago

May 2, 2024

Vishnu Chaudhary

Stephen M. Ross Net Worth 2024: How Much is the Chairperson of The Related Companies Worth?

Who is Stephen M. Ross?

Stephen M. Ross, the Chairperson of The Related Companies, is a distinguished figure in the real estate sector, renowned for his significant contributions and profound impact. Born on May 10th, 1940, in Detroit, Michigan, Ross embarked on his journey into real estate at a young age, demonstrating remarkable diligence and entrepreneurial spirit. Despite initially pursuing a career as a tax attorney, Ross soon discovered his genuine passion for real estate investment, laying the foundation for his illustrious career.

Stephen M. Ross Career

Ross’s career trajectory is marked by pioneering ventures and transformative projects. In 1972, he founded The Related Companies, which initially focused on subsidized low and moderate-income apartments. Over the years, Ross transitioned to higher-profile projects, including the iconic Hudson Yards development, valued at over $7 billion. His visionary approach and strategic partnerships have cemented his reputation as a prominent figure within the real estate industry.

Stephen M. Ross Net Worth

As of 2024, according to Celebrity Net Worth, Stephen M. Ross’s net worth stands at an impressive $10 billion, solidifying his status as one of the wealthiest individuals globally. Ross’s wealth accumulation is attributed to his unparalleled success as a real estate mogul, with an estimated annual income of nearly $700 million derived from royalties on his diverse property holdings. His continued involvement in the real estate sector, with ongoing projects in New Jersey and Florida, further contributes to his substantial net worth.

Stephen M. Ross Age

Currently, Stephen M. Ross is 83 years old, born on May 10th, 1940. Despite his age, Ross remains actively engaged in his professional pursuits, demonstrating resilience and dedication to his craft.

Stephen M. Ross Family: Wife and Children

Ross’s personal life is characterized by familial bonds and enduring relationships. He is happily married to Kara Ross and is the proud father of four children. Ross’s commitment to family values underscores his holistic approach to life and business.

Stephen M. Ross Height and Weight

Physically, Stephen M. Ross stands at a height of 6 feet 2 inches (1.88m) and maintains a healthy body weight of around 72 kg. Despite his busy schedule, Ross prioritizes his health and well-being, engaging in activities such as volleyball and tennis.

Also Read: Dave Ramsey Net Worth 2024: How Much is American Radio Personality Worth?