Although utilizing drop shippers to sell products online can be a lucrative way to earn income, you will still need to be aware of some of the pitfalls.
The main downside to drop shipping is that you have no control of the inventory. While there are definite benefits to drop shipping, sometimes the fact that you do not have direct contact with the products can cause problems. What if the drop ship company goes out of business or worse, was running a scam? The items your customers are expecting will not be shipped and will make your business look bad. Word of mouth advertising is great but not if it is to say how lousy your service is.
Another drawback can be when a drop shipper changes inventory without notice. I have experienced placing an item for sale online only to find the item was replaced with a different model after an order had been placed. The same holds true for the amount of items your supplier has on hand. If someone places an order for an item that has just sold out, you end up in a jam. You will have to offer your customer a refund and sometimes a refund does not completely satisfy an expectant customer. You are bound to receive a response from customers about your service and it will be hard to convince them otherwise.
Lack of communication with your drop shipping representative can also cause a delay in delivering your products. Before you sign up with your drop shipper, make sure you find out what all of their policies are. For instance, there may be items that they do not allow to be drop shipped. If you are not aware of this, it can double the time it takes to deliver to your customer. You will have to purchase the item and have it shipped directly to your business address and then you will have to ship it to your customer.
Staying aware of these types of pitfalls can help prepare you should you ever encounter them. The best way to start off is to find a legitimate wholesale drop shipper resource.