Struggling to know why people fail with eCommerce and dropshipping businesses? Chances are you’re encountering the same problems and don’t even know it.
With the rise in technology and social media, dropshipping has become a very popular eCommerce business model. More and more entrepreneurs are turning to dropshipping because of how easy it is to get started. However, while the barrier to entry is low, not all entrepreneurs are seeing profit or success.
Like any kind of business model, dropshipping only works as well as the business owner who is managing it. For someone who is inexperienced, they will struggle to overcome obstacles that are required to become successful. Here are some of the most common reasons why people fail with eCommerce and dropshipping.
Not Doing Enough Research On Your Niche
If you want to start a dropshipping business, you need to know your niche inside and out. For example, an entrepreneur who is passionate about fitness may assume they already know everything about working out and staying fit. But in reality, what they may desire isn’t always the same as what the market is looking for.
Some people are looking to lose weight. Others are looking to gain muscle. And even some people are lazy and want the simplest product that can make their workout routine as easy as possible. In a niche like fitness, there are many different varieties of what is out there. If you assume you know what your customer is looking for, chances are that you are going to be wrong. Making assumptions without doing your homework is one reason why people fail.
Instead of making guesses, do your research. Ask around and get customer feedback. Send out surveys to see what’s really on their minds. Taking the time to research your niche is crucial to delivering the best outstanding product and service to your audience. And in a saturated business like dropshipping, you need every advantage you can get over your competitors.
Once you’ve done your research, you’ll know exactly how to create your marketing campaigns to captivate their interest and their credit cards. The best part, is that you know exactly what’s going to work and what your customers want – because your customers told you when you asked them.
They Have Little To No Starting Capital
Starting a business requires capital. The most common reason why people fail in business is because they run out of money. Research finds that about 20% fail in their first year, and about 50% of small businesses fail in their fifth year.
An entrepreneur who has a large amount of capital, has a much higher chance to succeed in business. This is why you see many startups seeking investors to fund their expenses and operations. They understand that they lack capital, and are more than willing to seek investors with large amounts of money to increase their chances of surviving their first 5 years in business. In return, investors get a percentage of equity in the company as their ROI.
In business, capital is your safety net. Like a tightrope walker who has just started his first day on the job, inevitably mistakes will be made. Everytime he slips or loses his balance, he falls onto the safety net below him. It gives him another chance to learn from his failures, and try again.
But without a safety net, he would plummet 20 feet above the ground to his demise. Your business works in the same way – without capital to support you in tough times, one or two failures is all you’d be able to tolerate before you’d have to close down your business. Not having capital as a safety net to business failures is another reason why people fail.
With dropshipping, capital helps to sustain losses such as customer refunds, transportation costs, product defects, supplier delays, and marketing campaigns. The more capital you have at your disposal, the more opportunities you have to find success.
Not Caring About Your Customers Or Their Needs
How do the most profitable businesses and conglomerates go bankrupt? By forgetting rule number one: The customer is king.
One of the most frequent problems businesses run into when they start to see success and get larger, is they neglect their customer base. As the business grows, there’s more and more things to look at and manage, which takes up more and more time. In order to get more time to keep their business growing, they trade off the one thing that has helped them get this far: Customer feedback. Big businesses forget the fact that they wouldn’t be successful if their customers didn’t help them get there. As a result, they fall behind as the market changes, and only realize their mistake once it’s too late.
Especially with a business like dropshipping, problems are sure to occur. You rely on getting orders from a supplier, and then shipping them to your customers. In between those processes, are numerous factors you need to account for. Delays, cancelled orders, quality issues, incorrect shipping addresses etc. – are all things that will make your customers unhappy.
If you don’t have solid customer support, you aren’t going to be in business for long. Customers that feel their needs aren’t met or don’t feel appreciated will move their business somewhere else. This affects your reputation and customer reviews, and in a business like dropshipping where no one even knows who you are, if they can’t trust you they won’t buy from you.
In a saturated market like dropshipping, your competitors are always looking for ways to steal your customers. And if you aren’t taking care of your customers as well as you should, you can be sure your competitors will gladly step in and do so. If you want your business to thrive and have customers repeatedly buy from you year after year, you’ll need to take the time to nurture that relationship.
Random Promotions vs. Targeted Marketing And Advertising
An eCommerce business like dropshipping is unique in that you have to promote your own store. You can’t just create a website with your products on it, and expect Google to list it on the front of their page. In order to get eyeballs onto your website, you need to run marketing campaigns and ads.
Another reason why people fail with eCommerce and dropshipping is because they don’t know how to sell themselves. They might set up an Instagram page and list their products with “BUY NOW” captions, and hope that’s enough to get paying customers. In reality, you have to be very creative and focused with your approach.
A random ad that pops up on your page telling you to spend money on something you probably don’t need, isn’t going to entice you to take action. Your customers are going to feel the same way. If you’re looking to promote your products, you need to do it in a way that grabs their attention and makes them want to know more. Are you running ads that cater to a specific need of theirs? Does it explain how your product is different from every other type already out there? Are your marketing campaigns entertaining, controversial or different from the norm?
The better you know your audience, the more successful your marketing and advertising campaigns will be. This is why doing research is fundamental to succeeding with eCommerce and dropshipping. The majority of everything you do in your business is online. In order to attract customers and get them to buy your products, you need to make your online presence stand out from the rest, and know how everything works.
They Have A Short Term Mindset And Shiny Object Syndrome
One reason why people fail with eCommerce because they have ‘shiny object syndrome’. They jump from one opportunity to the next, without ever spending more than 3 months working at it. And in business, if you want to succeed, you need to have a long term mindset to endure setbacks.
Most people who start their dropshipping business aren’t committed. They watch a YouTube video about how you can make 6 figures a year doing dropshipping, and get inspired to do the same thing. But that’s not the full story. They don’t see the years of failure, setbacks, ups and downs that gave those YouTuber’s the experience to run a successful 6 figure dropshipping store. All they see is the final end result.
People who have shiny object syndrome rarely succeed in business. They’ll get fired up, spend maybe 1 or 2 months pursuing their new business venture, and then give up when nothing happens. Or they’ll get frustrated that they’re only making a few hundred dollars in sales, because they’re expecting thousands in their first month of business. The biggest problem for entrepreneurs in any business venture, is that they don’t stay in the game long enough to see the fruits of their labor.
As a result there are many, many eCommerce stores, but only a few that are truly successful. If you want to take your eCommerce business to 6, 7 or 8 figures so you can live the dream lifestyle you want, you need to have a long term mindset and focus on the future instead of the present.
They Don’t Believe In Themselves Or Their Niche
What makes someone start a dropshipping business in the first place? Because they believe.
For example, suppose that you got a phone call. On the other end of the line is a rich Nigerian Prince who is asking you to send them money because they have been locked up. In exchange for their freedom, they will reward you with expensive gold, jewels and money from his family’s royal treasury.
Would you send this person money?
“Of course not! How stupid do you think I am?”
But ask yourself, why wouldn’t you do it? Because you don’t believe they are telling the truth. You don’t believe they are actually a rich Nigerian prince, or you don’t believe they are going to hold up their end of the bargain. When you don’t believe in something, you won’t take action.
The same holds true in business. If you believe that something will work, you will do everything in your power to pursue it and make it happen. But during that journey, if you lose your conviction and no longer believe in what you do, what do you think will happen?
In order to succeed with eCommerce and dropshipping, you need to believe in yourself and your niche. If either one of those factors are not true, you will not succeed. You will not find the motivation to keep going, or to market your product. After all, if you wouldn’t buy what you are selling, how can you expect anyone else to do the same?
The reason why people fail with eCommerce and dropshipping is because they don’t truly believe. If they believed that they would be successful no matter what, they would make it happen. Those who fail, fail because their beliefs are not strong enough.Whether you think you can or you can’t, you’re right. - Henry Ford Click To Tweet
They Give Up When They Don’t See Results
Tenacity is the greatest asset an entrepreneur can have. It is the ability to accept failures, setbacks and obstacles, without losing motivation. Most entrepreneurs who get into dropshipping fail simply because they give up.
If you give up, you automatically fail. Choosing to endure hardship or to give up is something within our control. Yet a majority of people who are struggling tend to give up too early, because of their limited short term thinking. Realize that the most successful businesses today are successful because they have been in business for a long time.
For example, when Amazon first went public in 1997, the company’s stock share was only worth $18. Today, the company is worth billions of dollars and one share is worth at least $2,000. But what most people fail to realize is that it took Amazon 23 years before it became what it is today.
If Jeff Bezos had given up while he was working in his tiny little office 23 years ago, there would be no Amazon today. ECommerce business models would never have taken off, dropshipping would never have been created and so many entrepreneurs would never have the opportunities they have today. The reason all of this exists now, is because someone never gave up.
Losing motivation when you don’t see results happens to all of us. It’s normal for us to have doubts, fears and insecurities when we are working our butts off and don’t see success. But making the choice to give up and abandon all of the work you’ve done up to this point is a choice. And the choice you make – whether to give up or keep going, will determine your future.Not everyone who works hard is rewarded. But all those who have succeeded have worked hard. - Kamogawa Genji Click To Tweet
The Truth Behind Online E-Commerce Stores That Guru’s Don’t Want You To Know
At the end of the day, an eCommerce store is still a business like any other. If you think anyone can magically succeed at dropshipping because it’s ‘easy’, you have been lied to.
If you want to succeed in business, you have to put in the work. What you don’t know and what most guru’s keep from you, is exactly how much work you actually have to put in. As a result, when young entrepreneurs get into dropshipping for themselves, they become overwhelmed and give up. They go in expecting it to be a breeze, but get hit by problem after problem after problem.
These problems slowly whittle away at their temporary motivation, until there’s nothing left. And once all their motivation has vanished, the only thing that’s left to keep the business up and running is their own willpower and desire to succeed. For most entrepreneurs with shiny object syndrome, this desire does not exist.
The biggest reason why people fail has nothing to do with the excuses they come up with in their head. The biggest reason is because they themselves are not committed to doing everything it takes to becoming successful. Every single dropshipper out there who is making 6, 7 or 8 figures a year has gone through multiple failures and hardships. It is through these setbacks that they have acquired the experience to learn from their mistakes, and finally become successful.
I truly believe that anyone can get rich if they put in the effort. The only difference between ordinary people and super successful people, is that successful people are committed to achieving their goals through any means. That kind of character, can’t be bought, sold or acquired by watching a webinar. That kind of character can only be built through hardship and experience.
How To Earn 6, 7 or 8 Figures A Year Without Doing Dropshipping
I frequently have my students asking me what they should do if they want to become rich. Instead of starting an online business like dropshipping, I believe it is much better to acquire what I call a High Income Skill.
A High Income Skill is a skill that you can trade to the marketplace in exchange for money. But unlike a job where you are paid based on the hours you spend working, a High Income Skill pays you based on the value you deliver.
The definition of a High Income Skill is that:
- It generates $10,000 or more a month
- Pays you based on how much value you can deliver, rather than what your boss or manager thinks
- Increases your income, as you get better at it
Some examples of High Income Skills are copywriting, investing, public speaking and networking. But the one High Income Skill that I believe has the most potential, is High Ticket Closing.
If you want to learn how to get paid handsome commission cheques working only a few hours a day from the comfort of your own home, click here to discover how with this free masterclass.