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Recently we have noticed articles written by people who are calling dropshipping a scam and how they lost tons of money. This simply is not always true though.  Oftentimes the reason dropshipping fails is because dropshipping is a business, and that requires people to treat it as such.

The majority of money spent on dropshipping is advertising when using a platform like Shop1 which handles all of the back end items for you or a lack of your items selling to cover that cost.  What does this mean when you are losing money with this being the biggest expense? We’ve covered a few previously, but we want to bring up a few possibilities again because your success is our biggest priority.

An unpopular or too popular niche was selected for the current market

This is pretty much the business equivalent of “Goldilocks and the Three Bears”.If you choose a market that is too popular then you are late to the party and will have a hard time breaking into the market when other more established sellers dominate said market.  Too unpopular of a niche and no one buys from you either. While this may seem like it is common sense, if you don’t do a thorough market analysis you could fall into this trap.

it is ok to start over

No re-targeting or advertisements

If you are not getting traffic to your store, then it is quite possible that your advertising is not reaching your target audience or its content is not inspiring your target audience to shop your store.  The first thing that should be done is to revisit the advertising content to see if the content matches the audience’s interest and the location of the advertising reaches that demographic. If not, the next step is necessary.


No or incorrect market analysis on current customer habits and competitor actions

Sometimes it is necessary to redo the market analysis.  If you aren’t hitting the target audience then it is possible that there was a mistake in the analysis.   The market may have suddenly shifted as content was created, or perhaps there was just user error during the process.  This happens sometimes and is just a part of business. Remember, when someone’s everything is given into a project, failure is just a learning lesson on the way to success.  All major success’ are built on lessons learned from failed attempts

Time Management

Inefficient time management

If you find that you are spending too much time on something, or that you know you have not put the amount of time into the project you are working on and your deadline hits, time-management could be the issue.  This can be a life situation issue, a personal trait, or a variety of reasons . This needs to be analyzed and new tactics must be employed to ensure good time-management. There are only so many hours a day someone can work and every minute counts.  

And sometimes, the lack of actually doing the work

The cold hard truth of the matter is that sometimes people just don’t put in the work, for whatever reason.  If this is the case, then a decision needs to be made on whether this is something that a person wants to do.  If not, then don’t waste the time and money on the advertising. Having your own business is a big commitment and some people just don’t like being their own boss.  It is perfectly normal to prefer one or the other, and something to decide on so you make a solid decision for your future.  

Dropshipping is not a get rich fast process and it is not a scam.  But it is a business and if people treat it as such, normally they have success.

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