Four Reasons why you Should Not Start Dropshipping
Dropshipping sounds like a dream come true. However, there are four critical reasons why a person shouldn't start dropshipping.
11:21 27 July 2020
Dropshipping appeals to all kinds of people looking to leave the rat race and start a business where they don't want to answer to anyone. The barriers in dropshipping are low as well, as most people only need $200 or less to get started. Entrepreneurs find suppliers to provide inventory for your store, and they never have to deal with shipping Beyond sending the shipping order to the supplier.
You are looking for income NOW
If you are looking for a second income with a weekly or bi-weekly paycheck, you may want to steer clear of dropshipping. Those who enter the industry know that they will not receive a dime for about the first three months. In fact, the first three months of dropshipping is all about fees and costs. You're trying to establish a revenue more than make net profits. Also, most dropshippers know that they won't be able to depend on a steady paycheck in their first year of dropshipping. So if you want money now, then start looking for a 9-5 job instead. But you can always begin dropshipping on the side when you have time
You lost your job
We're not sure why, but many people who lose their jobs want to start dropshipping. It's a strange phenomenon, and nothing good ever comes of it. Like we said above, dropshipping in the first three months is all about costs and fees. But when you lose your job, every single penny you spend counts. Unless you have over six months worth of expenses in your savings, it is not the time to start a new business. If you're unemployed and you're looking for income, then read the classifieds or go to indeed.com instead.
You don't know how to prepare for bad times
COVID 19 has shown the world that no country is ready for any crisis, whether monetary or health-wise. And this goes double for the dropshipping industry. Dropshipping is an unstable business model, so those who operate online stores need to practice saving their money and prepare for months when they don't make as much usually. Even without the crises, low revenue months are a fact of life in dropshipping. If a dropshipper doesn't prepare for bad months ahead, then they are gambling with their livelihood. So if you're not the best at saving and anticipating future problems, we suggest you learn how to become a planner before starting in the volatile world of dropshipping.
You are impatient
Dropshipping is not about making big gains overnight. The only correct path to success in this industry is research, testing, time, and building a strong reputation among your customers. However, many videos on YouTube start by saying, "Do you want to make $100,000 in 3 months? You can do that with dropshipping!" These people are lying to you because they want you to buy their books. You might be able to make $100,000 in 3 months, but only after four to five years in operation. You need to be patient in this industry. So, if you are looking for quick money, you could trade stocks instead.
If you're in any of these positions, it doesn't mean you should never Dropship in your life. When you have a stable income, you're more mature, you know how to plan a repair, and you're ready to wait months to see a net profit of $100 then it'll be time for you to dropship.