Why do I have no sales? Why don’t my ads work? Why don’t visitors convert into buyers? The truth about dropshipping is that most business owners make the same mistakes again and again. But we want you to stop making them after you read this article.
At AliDropship, our plug-in lets you start dropshipping even if you have a low budget. In this article, we’ll be telling viewers how to start their own business with just $150. But be careful not to make the following dropshipping mistakes!
In this article, I will show you the top 10+ biggest mistakes that drop shipper makes as a beginner. But if you haven’t start dropshipping yet. Here is the link to how to start Shopify dropshipping step by step. And also we have how to start eBay dropshipping from scratch.
#1. Selling Cheap Products In Single Units
It seems like a good idea to dropship cheap products for a much higher price. However, some of these goods tend to sell in single units. Due to the high cost of conversion, the profit margin will be very low. So selling cheap stuff for a higher price doesn’t always work well.
It doesn’t mean you shouldn’t sell cheap goods. Some of them can be really profitable if you manage to increase your average order value.
#2. Ignoring The Cost Of Conversion
Here’s a backpack on AliExpress. It costs almost $15, and the seller offers free shipping.
Great! If I charge an extra $10, I can keep this money as my profit. This is what most beginners think. But it doesn’t always work this way.
It can work if buyers come from free sources like organic traffic. But the truth about dropshipping is that most sales come from paid advertising. In this case, you have to actually pay for the acquisition of each real buyer.
The sum of money you have to spend is called the cost of conversion. Take a look at this. Here the cost of conversion reaches $14, which we have to price in as well. Or find a better promotional avenue with cheaper leads.
Speaking of conversion rate — do you know how to find yours? If you use the AliDropship plugin, download our Google Analytics Enhanced Ecommerce add-on. This enhancement provides detailed statistics for your business, and it’s absolutely free.
#3. Ignoring Price Spikes On AliExpress
Sometimes AliExpress sellers change prices. And if the price became higher than the one you set on your site, that might be a problem. We don’t want to sell things without a profit margin.
The AliDropship plugin was developed for dropshipping from AliExpress. One of its features is the ability to automatically update the prices in your store whenever they change on AliExpress. That’s convenient!
You won’t need to worry about your price is lower than suppliers’ if they change something. But if there’s a product you are advertising on Facebook and Instagram right now, you’d better turn this function off. Some drop shippers make this mistake.
For example, if you offer a product on Facebook for $20 and the price on AliExpress suddenly changes, site visitors will find a different price on your site. That’s going to be an unpleasant surprise which may result in some angry customer emails.
#4. Spending Little, Expecting Much
This mistake is about mindset. You can’t make money without spending money. Many dropshippers share their success stories and tell beginners how much they earn. What they don’t tell is how much they spend. The truth about dropshipping is that you can’t make money without spending it.
The AliDropship team invests hundreds and thousands in social media campaigns alone. So, don’t expect miracles.
One Facebook campaign for $10 is not enough to get impressive results. Sales need time and testing. Speaking of Facebook, did you know that now you don’t have to manually create Facebook ads with the products from your store?
Alidropship Facebook Business add-on can automatically upload goods from your dropshipping store. It’s compatible with WordPress and WooCommerce sites if you have the AliDropship plugin installed. Check it out — it’ll save you a lot of time.
#5. Spending A Lot While Seeing No Results
Another popular mistake is not changing anything when seeing no results. The opposite of the previous mistake, there is a time when spending too much on advertising is not wise. For example, if it’s been a week, and you’ve spent $300 on ads, but only got 2 sales – you really should stop.
Because obviously, your current campaign isn’t working.
#6. Jumping To Conclusions
On the other hand, premature decisions often cause failures as well. Sometimes a Facebook campaign generates sales on the very first day. And that’s when you decide to increase the budget. But then nothing happens. Many newbies also decide to turn off a campaign after just two days with no sales.
Both decisions are premature because a day or two is often not enough to make a reasonable conclusion. Just keep testing to see where it goes for a few days more before making a big decision.
#7. Not Preparing Your Store Beforehand
Another common dropshipping mistake is to launch advertising campaigns without preparing your website for visitors. Most people who come to your site are interested in a given product. But they’re not sure.
Pretty much anything can deter them. So make sure your product pages look great, are informative, and are functioning properly before you drive paid traffic to them.
If you’re uncertain about whether your store looks good enough or has everything working optimally, use the Alidropship Dropshipping Store Review service.
Alidropship team of experts will analyze your website and provide a list of recommendations.
#8. Not Testing Anything
Another truth about dropshipping is that you never know what’s going to work and what’s not. The products you found, the ads you created, and the audiences you’re targeting all require testing. Testing costs money, but making a mistake here costs much more.
Launch a campaign and watch how it performs before making a final decision.
#9. Not Remarketing
Ignoring remarketing is another mistake. Most people who visit your dropshipping store will probably buy nothing. Sad, but you just have to deal with it, right? Wrong!
Some site visitors are not lost forever. Remarketing is a way to promote products to people who withdrew from purchasing for some reason. And that’s another sales channel for any business. If you need more tips on how to promote your business on Facebook, watch Alidropship Premium Webinar.
We explain the whole Facebook Ad Strategy we use for our own dropshipping stores and how you can repeat all the necessary steps.
#10. Having Only One Dropshipping Supplier
Another unpleasant truth about dropshipping is that you are dependent on suppliers. Even if you have found a great seller with low prices and high-quality goods, relying solely on this one supplier will make you vulnerable.
Always diversify your suppliers, because you never know if costs will go up or if a supplier turns out to not have such great item quality. Of course, it’s difficult to manage multiple sellers at the same time.
That’s why AliDropship developed the My Supplier add-on. It’ll provide you with detailed information on your sellers, their products, and the income they have generated so far. You can see who performs the best and make your business decisions that way. Learn more with the link to the add-on.
#11. Not Trying To Increase The Average Order Value
Not trying to increase the average order value Oftentimes, beginner entrepreneurs are happy with how much sales their stores make. But how much you earn with each sale matters too!
The average order value is how much an average customer spends with each purchase.
And there are many ways to increase this parameter. We already mentioned another article devoted to this topic. If you prefer reading about increasing your profits, you can check out our blog post on this topic here.
#12. Targeting Too Narrow Audiences
Most beginners also realize that targeting everyone almost never works. Offering products to narrow, specifically-targeted groups is usually more efficient.
But newbies often target the obvious audience, which might be too narrow and specific, leaving outsider groups of potential buyers.
Always test wider audiences. You never know what you can discover.
#13. Giving Up Too Soon
And there you have it — the ultimate truth about dropshipping from us, the experts in dropshipping for over 10 years! Success doesn’t come right away You have to work experiment, and invest.
We may make it easy for you to get started, but the other half of the heavy lifting comes from you, the business owner. Slowly, with experience, you’ll learn how to run your store and avoid common dropshipping mistakes.
Case in point: one of the Alidropship customers from France had to wait for six months before he got his first sale. But now his two stores (yes, TWO) make more than €10,000 a month.
How? This guy didn’t give up. He kept testing and experimenting to find what works. If you want to watch our interview with him, follow this link here.
Remember this Dropshipping isn’t one of those schemes that promise to make you a millionaire in a month. It’s a business that requires thinking, risking, failing, and patience. So, keep going!
If you have any questions ask them in the comments down below!