There are three major reasons why people fail at dropshipping. Are you making one of them? Read on to find out…
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It is not uncommon to hear some people say that dropshipping is a “scam.”
On the other hand, it is also not uncommon to hear about people raking in tens of thousands of dollars with the exact same model.
So, what’s the difference?
Why do some people claim dropshipping to be a scam, while others claim this same model has changed their entire life for the better?
In this article, we’re going to talk about the three big reasons why people fail at dropshipping – and how you can avoid these mistakes.
These are common mistakes we usually see people make that tend to block them from achieving success with dropshipping.
Whether or not you own a dropshipping store, these three reasons can also be a real eye-opener to learn from.
If you want to learn the three reasons why people fail at dropshipping, read on to find out…
Reason #1: Not Testing Enough Products
Usually, people don’t run enough paid advertising tests for products being sold in their store. They assume that by only testing one or two product Facebook advertisements, they’ll hit the jackpot, and the money will start pouring in.
But expecting your first product to be a hit is like expecting to know how to swim on your first attempt – it hardly ever happens!
This is one big reason why people fail at dropshipping. In reality, finding a winning product is going to take more than just a few tests. But most newbies find this truth hard to swallow…
The reason why can be explained by a phenomenon psychologists name “illusory superiority.” This is the normal tendency for people to overestimate their abilities. And having unrealistic expectations are one of its biggest symptoms.
As a result of having high expectations, failure becomes more psychologically damaging. This is also probably the reason why you’ve heard someone say “dropshipping is a scam.” It easier for people to blame the method, rather than accept that they haven’t found the right product.
But as mentioned before, finding a ‘winning’ product doesn’t happen immediately. So when does it happen?
As a general rule of thumb, it will roughly take twenty product tests to find one winner.
The good thing is that, once you have a winning product, you’ll make back the money lost on products that didn’t give you any returns… plus a whole lot more!
Keep in mind though, that there’s no hard and fast rule here. You could find a winner on your tenth product test, while on the other hand, it could take more than twenty product tests to find a winner. Twenty products is just an average window period we find most people find a ‘winner’ within.
But don’t let this discourage you. In fact, see having to go through a number of products tests as “low hanging fruit,” because most people tend to give up after their first or second product.
What sets millionaire dropshippers apart from the rest is that they don’t mind failing, and consider it a necessary part of the business.
Reason #2: Not Creating Product Listings that Convert
A good product description is key to your dropshipping success. It’s where customers can learn more about your product. And if written well, can give customers a fire-burning desire to buy your product.
So why do most people tend to neglect this area?
One of the reasons is because it can be hard to come up with your own product description. Most Aliexpress suppliers provide very little information about the product, or only list a few boring features (that nobody really cares about).
So if you’re stuck with what to write, here’s a smart solution. Head over to Amazon, and see if your product is listed there. Then read the product descriptions to see if you can gain any ideas or inspiration that you can use for your description.
Not only will it now be easier to write your own description, but you’ll open your mind to new ideas about the product that you never realised at first.
Also, here’s another tip to keep in mind: Write about the benefits, NOT the features.
Features might seem important. But honestly, people do not care about them as much as you may think.
What people REALLY care about are the benefits.
To understand this, take a look at these two descriptions for a product on Amazon.
A: “12.75 inches x 5.25 inch diameter, lightweight rugged core EVA massage roller with triple grid massage zones”
B: “NO MORE aching in your legs after the gym! This foam roller almost INSTANTLY alleviates the pain you feel after exercise — freeing your legs (and mind!) from muscle soreness.”
Which description here would urge you to buy the foam roller? Description A or B?
The majority of people would say B. Why? Because this description is much more compelling and exciting! Imagine reading that after crushing your legs on leg day — of course you’re going to want this.
When you focus more on how a product will benefit someone’s life, rather than just noting down its features, people will become more drawn to purchasing your product. Because YOUR words allow them to mentally visualize how your product can solve their problem…
…and this a very, VERY powerful trick that top marketers use when trying to sell you something.
Reason #3: Not doing remarketing and follow up campaigns
Most people are so fixated over their initial advertisement. When in reality, a remarketing campaign is a much easier and low-cost method of making money.
Remarketing is when you capture visitors to your store with a tracking pixel. This pixel then “follows” them around the internet, and re-advertises to them the product they were previously looking at.
Not only do remarketing campaigns usually have a high ROI (Return of Investment), but it’s also basically free money, as it doesn’t cost you anything to have your advertisement “follow” them around the net.
Remarketing campaigns are so powerful, they can turn a product that could barely break even into one that is mega-profitable.
Another reason why people fail at dropshipping is because they aren’t doing follow up campaigns.
Most people assume that acquiring new customers should be the main focus of generating sales in their store.
But while it might seem this way, the real money is made in follow up campaigns. For example, an email newsletter series where you can promote other products in your store to existing customers.
The reason why this method is incredibly powerful, it because it much easier to make a sale from a customer who has already purchased from your store, rather than spending money to acquire a new one.
Because you’ve already earned your existing customers trust, making repeat sales isn’t so much of a hurdle to jump over (compared to the first sale).
Happy customers don’t often buy once, so are likely to buy from you again, which greatly increases the lifetime value of your customer.
The best part is that these customers are free! They do not cost you anything, and are worth way more money in the long-term.
Remember that, as long as they stay on your email list, you have a chance to remarket to them as many times as you wish.
Don’t make the mistake of prioritising new customers as a form of revenue. Focus on leveraging the customers you already have by promoting other products they might have an interest in purchasing.
Helpful article: 6 Facebook Ad Tips for Aliexpress Dropshipping Stores
The Bottom Line
In short, these three rookie mistakes are why people fail at dropshipping. But the good thing is that all three can be changed immediately!
Using the tips outlined in this article, you can easily make a turnaround for the better in your dropshipping store.
Learning to have patience to test a lot of products, creating amazing product descriptions, and following up with existing customers, can create a whole new world for your dropshipping store. And you’ll experience success a lot faster than most people!