Many people kick start their dropshipping business in the past few years, but the dropshipping method still workable right now? Most of the beginner drop-shipper fail
because they are inexperienced and follow the hype.
Here is the 8 main reasons why dropshipping doesn’t work In Malaysia online marketplace.
Lack of knowledge about marketplace exposures algorithms
Most of the drop-shipper don’t know how the marketplace algorithm works. They do not know how to measure their exposures metric. This makes them blindfolded and easily make mistake on choosing the suitable strate by to sell the product.
Poor product knowledge
Most of them not even see the products with Their own eyes. Sometimes, the most embarrassing thing is the customer knew about the products more compare to them.
Low entry requirement leads more competition.
Almost anyone can simply kick start a drop-shipping business nowadays. it doesn’t require a high cost to start and so many people can just enter the market and trigger the product's price wars.
Warranty and return/refund policy issue.
Most of the dropshipping supplier doesn’t accept returns, most of the time the sellers need to absorb all the costs.
Repack and shipping delay.
Don't have total control over the handling time. Can’t repack the product parcel according to our requirements.
Supplier is also your competitor.
Directly compete with your suppliers in the consumer market
Product Legal liability issues
Although this isn’t a common problem for dropshippers, it’s worth mentioning. Some suppliers aren’t as legitimate as they claim, and you don’t always know where the merchandise comes from.
Even more deceptive is when suppliers illegally use a trademarked logo or another company’s intellectual property, which happens more than average.