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the truth about dropshipping

is it real entrepreneurship?

 

why dropshipping

won’t work

‘Drop shipping influencers’ often promote drop shipping to be a lifestyle of wealth and low effort in which profit is only a matter of time. However, in reality, many issues arise in the long term of drop shipping.

Martin Luxemburg, CFO of Global School for Entrepreneurship raises awareness about the risks and liabilities of drop shipping. A lot of young entrepreneurs think drop shipping is a quick way to make cash and become an entrepreneur.

‘hidden’ problems

Many problems that come with drop shipping are often hidden for starting entrepreneurs, which they only find out about after they’ve started. For instance:

1. Big orders, high uncertainty.

1. Dropshipping requires sellers to order large quantities of low-quality products from suppliers from overseas. These suppliers often don’t communicate delivery time or how they ship the items. This uncertainty translates further to the customer. How will you deal with unsatisfied customers to ensure they return? 

1. Big orders, high uncertainty.

Dropshipping requires sellers to order large quantities of low-quality products from suppliers from overseas. These suppliers often don’t communicate delivery times or how they ship the items. This uncertainty translates further to the customer: how will you deal with unsatisfied customers to ensure they keep purchasing your products? After all, a returning customer is 60%- 70% more likely to purchase than a first time customer.

2. Liability and consumer rights

Because products come from overseas, some products also bear import tariffs. Who will bear these costs? What about the consumer rights? Right to return, warranty, liability due to unsafe products? When importing goods, you need to make sure these things are arranged properly.

3. Competition

Due to drop shipping’s popularity, many young people have started to dropship. However, as always the case, the more supply of a product the lower the demand.
How will you capture demand by competing with larger, well-established drop shippers? Or even more difficult: how will you deliver value on low-cost items? 

4. Misconceptions in profitability.

Perhaps the biggest misconception with dropshipping is the fact that the influencers swear by the effectiveness of their own ‘drop shipping courses’. They sell these courses for 200 / 300 euro’s where they teach you all the fundamentals of dropshipping. The bitter reality often is: generic tutorials which do not teach you anything about doing business.

Creating a long-term

Successful business

Setting up a successful business requires you to think from the perspective of the customer: create superior value, satisfy their needs, and ensure they become a recurring customer. At Global School for Entrepreneurship, we give entrepreneurship the attention it deserves. Our bachelor program is tailored in such a way, it follows the process of setting up a business. And as an added bonus: you’ll receive an accredited bachelor degree at the end of your studies as well. 

LEARN REAL ENTREPRENEURSHIP

Learn entrepreneurship from actual entrepreneurs and create your own business. Schedule a call to learn more about the program