5 Reasons for Australian Drop Shipping Store Failure
Why do most dropshippers fail? Why is it that a lot of people can't take it to the next level? Why do so many people get started and then quit? Let's talk about my five top reasons why most people generally quit or fail.
Number One: Quitting Too Early
If you kick off a dropshipping business, go for one week, with no sales and five hundred dollars spent on ads, you didn't really give it a proper go. You've got to give it three to twelve months, at least, to begin to build some momentum. This is a real business, this isn't a scheme to make some quick cash today. You can't just have a laugh, make some cash, and quit within five minutes.
Number Two: Bad Niche Selection
There are a lot of different niches and a lot of different reasons that they can fail. I do always say that any niche can work as long as you're willing to pay for it, so the idea is to narrow your focus and find a niche that isn't too competitive, especially when you're just starting out. If you're going to go into pet supplies or something like that, you have got a lot of heavy-duty competition ahead of you. Furniture is another tough one, or anything like that, where you're competing with big box stores. You're going to run into a lot of difficulty with that niche basically because the ad cost is just so expensive and you've got a lot of heavy-duty big-time suppliers out there that you're going head-to-head with.
So niche selection is very important and you need to concentrate on it. That's a big reason why people fail. They just choose the wrong niche, throw money at it, and fail. Basically, you just can't afford to keep up with the big boys.
Number Three: Spending Too Much On Ads
You can really get yourself in trouble if you spend too much money on advertising. If you haven't done any research on ads spend, if you don't really know what you're doing and find yourself a week in and you've already spent a thousand dollars, or five hundred dollars or even a hundred dollars, you know you're not doing it right. You haven't spent enough time researching your niche or even just the dropshipping model generally.
Before you get started with advertising, you need to take a course do some research. Take some time to learn about Basic Ads Spend, Basic Ad Words, Basic SEO, that kind of thing, so that you know what you're doing when you do start to buy ads.
Number Four: Not Investing In Training
That sort of leads me into my next point, which is not being willing to spend money on training. If you're not willing to buy books and courses, you'll be at a disadvantage. Take the time and spend the money to learn SEO, Google AdWords, Google PLA, and Facebook Ads. It's not even that expensive: you can find cheap courses on Udemy and elsewhere online. There is no reason why you shouldn't be investing in yourself. If you're not, you're not serious.
Number Five: Price Points
I don't like selling things that are $1 or $2 and having to sell millions of products to make any money. I like to find niches and products that are between two hundred and two thousand dollars, and that way, I've got really good margins. Finding a price point that makes sense and makes profit is essential, and I'll talk more about that in another post.
So, at the end of the day, there are the five reasons that people fail at dropshipping. Quitting way too early, bad niche selection, paying too much for your ads spend, not investing in training, and setting the wrong price point.
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