3 Huge Reasons Dropshipping Really Isn't All It's Cracked Up to Be

More and more, people all over the world are realizing that making their living online is becoming easier with each passing year.

In 2015 alone, more than a quarter of the population reported that they had worked from home recently. And in 2016, a whopping said that at least some part of their income came from online work in the last year.

And one growing trend of online startup businesses is the use of the dropshipping business model.

WhatIs Dropshipping?

This model is simple – an online storefront advertises a product, and when that product is ordered, the store buys it from a supplier and has it shipped directly to the customer. At no time does the storefront itself actually hold the product in its own inventory.

Sounds simple, right?

Well unfortunately, there are a number of downsides to dropshipping that most people just aren't talking about. And if you're thinking about getting into the biz, there are 3 pitfalls in particular you should know about beforehand.

 1.    An Oversaturated Market

Dropshipping is easy to set up and requires little to no overhead. That’s a good thing, right? Well, the problem here is that a simple implementation means the number of direct competitors can be downright shocking. And in most cases, they’re selling the exact same products at a price point that’s barely any different from yours.

As a result, making an actual profit in the dropshipping market is nearly impossible.

 2.    Razor Thin Margins

Piggybacking on the last point, because of the intense competition in the market, making it as a dropshipper means your markup – and essentially your profit – can’t be nearly as high as you’d like.

Essentially, that means that you have to do far more business to stay afloat when you’re running a dropshipping business – and even more if you actually want to turn a profit. And that of course means longer working hours, more stressful days, and a generally more anxiety-ridden day-to-day life. So while it may be incredibly easier to start, the profit potential is far lower than opening up your own online store (if you have the right guidance that is).

 3.    It’s a Logistical Nightmare

Finally, working out the logistics behind creating a successful dropshipping business can be downright maddening. This is mostly because you simply have zero control over the product supply chain since you aren’t actually creating or stocking the products yourself.

This can mean your business could come to a complete standstill if your supplier runs out of stock, hits a snag in the manufacturing process, or decides to increase their prices. And when your livelihood is on the line, even just a few days of downtime can deal a serious blow to your store's long-term viability.

 As you can see, dropshipping is more likely than not more trouble than it’s worth. The market is full of countless direct competitors, it doesn’t provide much earning potential, and it can be a sticky logistical mess in most cases.

But just because dropshipping is a letdown doesn’t mean you can’t make your fortune by starting your own online store (even if you don’t have a product idea!). And in fact, setting up a network of successful and lucrative e-commerce retailers is actually easier than you might think.

And while there are a number of systems on the market that at least partially show you how to do so, Shopifortunes is by far the most complete program for launching an online store. Plus, the Syndicate secrets and scaling for growth hacks inside can turn a moderately successful shop into an internationally renowned brand in little to no time at all.

For more info, take a look at Shopifortunes.