asked in Business+Finance by (19 points) 1 10
Do you think dropshipping is hard to work? Is there any disadvantages in dropshipping? If so what are they and how can we avoid it?

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answered by LEGEND (7,630 points) 5 15 39
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As a drop shipper, you'll need a large warehouse with plenty of stock to ship. Therefore, if anyone doesn't deliver on time and you can't restock your warehouse you'll lose a lot of clients because they are depending on you.

  1. To avoid issue only work with companies that can deliver your stock on time.
  2. Set up a great inventory system that will alert you when an item is getting low. You can say down to 5 in stock.
  3. Make sure that you have a good notification system when a person orders. You need to be notified immediately so that you can box up and ship out ASAP.
  4. Make arrangements with the local shippers either UPS, FED EX or another shipper you want to use. You should be able to go online and tell the shipper you have packages to pick up and they should be able to handle this and arrive at a reasonable time to recover your packages.
  5. Depending on how large a company you want to open up, you'll need at least 2 to 3 people who can print out the labels, pack the boxes, and enter them in the computer so the truck can pick them up from your warehouse.
  6. An automated system is the best to use and it will cost you to purchase a good software that can handle all your needs, such as printing labels, taking orders, alerting you to stock shortages, order stock, checking inventory, and invoicing. 
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answered by LEGEND (6,391 points) 5 10 21
1.)At times you might find yourself in such a stiff competition with other online merchandises. The only way you can beat this is by coming up with unique products and setting your prices not that high so that you attract more customers.

2.)Overcrowded market whereby several marketers sell almost the same products to the same people hence you might not find many customers.

3.)Most of the drop shipping practices are done online and therefore it needs someone whose computer literate. In order to be posting the goods on social media platforms like Facebook and the rest.

4.)Finally, getting profits isn't a guarantee at all considering all the fees incurred like shipping fee, processing fee and the rest.
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answered by VISIONARY (9,003 points) 6 10 19
Dropshipping like any business has its obstacles which one should envisage before engaging in it.There will rear their ugly heads so one as it deal with them or take them in ones stride.

There will be problem of lack of products to actualize sales

The cost of the product will be higher for a drop shipper than a retailer that might money to buy in bulk and as such more profit will be made by retailer than a drop shipper.

Dropshipping doesn't give one room to customize products for customer.one just have to go with the products that manufacturers have whereas it might not be so with a retailer that has the direct link with his or her manufacturer that might just make for the retailer his or her specification.

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