Updated: Jul 18, 2020

Blink once and the world around you has learnt a new word you have never come across before, blink twice and they have already outgrown it. This is the pace in which the hundreds of thousands of people in the business realm function today, and as ironic as it seems, only constant updation offers stability.

It is very important to educate yourself about the significant changes in the industry, to conduct extensive researches and to weigh the pros and cons of a particular trend before resorting to it. One such business model - Dropshipping, as seen by analysts, has witnessed a boom in the recent years, and seems to offer considerable profit if handled carefully.


Dropshipping is a particularly new business model that shifts the priority from superfluous financial stability to intelligent marketing and managerial techniques as the foundation of a new venture. It removes the burden of storing and shipping inventory, and keeping stock ready before-hand because, in dropshipping, the supply is directly transferred from the manufacturer to the client. This means, you will just have to establish proper contact with the manufacturers, and link this to potential clients, and leave the rest to them. As easy as it may seem, it is definitely not just a get-rich-scheme that does not have hardships. Dropshipping deals with a unique set of potential problems that should be handled carefully in order to gain the expected profit.


Low margin income

One of the very important things to remember is that, the amount of money you invest is definitely meager, but so is the return during the first few months of the venture. This is because most of the money that your client pays goes to the manufacturer, and what is left will be barely enough to spend on marketing your business, maintaining your domain and testing and managing orders.

· Make sure all your products are priced at least double the manufacturing costs.

· Try and learn digital marketing and website maintenance, because that would save nearly half of your expenditure. If not entirely, make it a point to know the basics of these fields at the least, so that you may be able to negotiate better deals with your agents.

Supplier reliability

Although you are not involved in the manufacturing process, you are still liable to your customers with respect to quality, punctuality and most importantly, legality.

· Conduct extensive researches before collaborating with suppliers, and run quality checks from time to time, because bad reviews and customer experiences will have a negative effect on the growth of the company.

· Be on the lookout for bronze suppliers, and stay as far from them as possible. Bronze suppliers are the once that give the nod to everyone who approaches them, but end up satisfying none. Tying up with this bunch only pulls you further down.

· Make sure you get your suppliers to sign a Dropshipping Agreement Contract. Some suppliers are not as legitimate as they claim to be, and might end up compromising on the quality of the material, or worse, may be involved in plagiarism. Copyright infringement is a very serious issue that you definitely do not want to get involved in.

Establishing a brand

As a dropshipper, customer loyalty is very important because it is necessary to get a minimum number of orders to sustain the business, let alone to gain a profit.

· Branding plays a crucial role. Research your audience, proposition and competition.

· Make sure you make a name that translates to credibility and authenticity.

· Customer delight should be given more importance than customer satisfaction.


These are some of the major hurdles that you, as a dropshipper, will have to jump across, but like any normal business venture, it comes with its own set of surprise battles that you will have to fight on your way to recognition and success. There are pros and cons to everything but it’s important to ensure that the pros are more in ratio, and the cons can be overcome. Dropshipping will definitely require detailed planning, a lot of hard work, and immense dedication and perseverance, but with the right kind of efforts, and the right amount of patience it can absolutely result in triumph.

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