The question whether if dropshipping is still profitable business in 2020 and beyond, depends on how it is done. First let’s see the following feedback from a reader’s post:
High Cost For Training and Courses
Internet marketers have make dropshipping look like a get-rich-quick internet marketing scheme. Many people have been attracted by the easy startup and successful photos. In reality, many have wasted a lot of money on dropshipping training courses and workshops, and the return on their initial investment does not tally up.
Managing Returned Goods
It’s not sustainable, long term business model if you are unable to handle complaints and return of merchandise.
As a middle man, you will need to coordinate shipment between the customer and the dropship supplier. If lucky, the dropship supplier inspect the goods and approve the refund, then the case is closed. What if your dropshipper rejected the returned goods and refuse to refund?
If there is no return policy for merchandise sold, then you might not attract buyers to your shopping website.
Bad Quality Products
Some dropshippers like Aliexpress, may sell cheap items with poor quality, and the seller has to mark up very high due to logistics and handling cost.
The long lead-times is another issue as in some worse case it may take up to a month before the product reaches the end user. Imagine paying 10x as much for a generic AliExpress product and, if you ever do receive it, you receive it a month later and it’s all busted and messed up.
Complaints Affect Reputation
Those who try to succeed in dropshipping often mention getting tons of complaints and threats of BBB reports from so many customers. Most of the time the fault lies in the product and the dropshipping suppliers, but since you are the one “selling the product”, you will get the blame and not the dropshipper.
In fact, the complaints can be so bad that Shopify shuts down some of these affected stores and their payment processor. This may affect your reputation even if you decide to venture into other businesses.
In The End
So these are are the reasons why dropshipping has such a horrible reputation. This is why even the Weebly founder started trashing it and banned Weebly users from using dropshipping apps on their platform.
It really shouldn’t have this reputation as dropshipping is a legitimate business model. For starters, it’s good to use it as a way to test products before releasing them. It’s good to use as a side business model. Even Wayfair does dropshipping as a side business model.