💻Join My FREE Online-Event: The Best-Kept Secret To A Profitable Online Shop: https://dropshipunlocked.com/online-event?el=blog-89-how-to-lose-money-dropshipping

🗣Hosts Lewis Smith and James Eardley discuss the common pitfalls that cause many to fail in the dropshipping business, and how to avoid these costly mistakes.

Understanding these errors can be a game-changer for those looking to succeed in ecommerce.

👉 Do you know someone who would love this? Share this video ➡️https://youtu.be/SkG7g24c4C8?si=f4dyteIExOI1ZNJ5

---------------------------------------------------------

Links and Resources Mentioned:

Pick up a copy of Lewis’ book: https://htabook.com

Get Shopify for £1 a month for 3 months: https://www.dropshipunlocked.com/shopify

Get a free trial with a professional phone line: https://www.dropshipunlocked.com/circle

---------------------------------------------------------

Key Takeaways:

★ Quality Over Quantity: Focus on high-quality, high-ticket items for better margins and customer satisfaction.

★ Strong Supplier Relationships: Reliable suppliers ensure consistent product quality and delivery.

★ Exceptional Customer Service: Outstanding service and communication build trust and encourage repeat business.

★ Continuous Improvement: Regularly update your product offerings and website based on customer feedback to stay relevant and attract more customers.

---------------------------------------------------------

Learn More:

➡️ When people are ready to create time and financial freedom for themselves, they visit - https://www.dropshipunlocked.com/free?el=blog-89-how-to-lose-money-dropshipping

➡️ Subscribe to The Dropship Unlocked Podcast to stay up-to-date on the latest episodes, and leave a like to help others discover the show.

---------------------------------------------------------

Topics Discussed:

In the "How To Lose Money Dropshipping on Shopify" podcast episode 89, hosts Lewis Smith and James Earthly discuss the risks and challenges of using the traditional dropshipping model on Shopify, particularly when sourcing products from overseas suppliers. They warn of common pitfalls such as long delivery times, poor product quality, and high competition, which can lead to financial losses through high refund rates, negative reviews, and frustrated customers. To avoid these mistakes, they recommend doing due diligence on product quality and supplier legitimacy before listing items for sale. They also promote the "home turf advantage" model as an alternative, where retailers partner with domestic suppliers for faster delivery, better quality control, and higher value products with larger profit margins. By focusing on premium products and exceptional customer service, this model can lead to a more effective and profitable business. The speakers also offer advice on choosing a profitable niche based on data and encourage taking action instead of searching for perfection.

• 00:00:00 In this section, Lewis Smith and James Earthly discuss the traditional drop shipping model and how it can lead to financial losses. They explain that giving customers long delivery times, offering poor quality products, and having inconsistent supplier communication are common pitfalls. These issues can result in high refund rates, negative reviews, and frustrated customers, ultimately running a business into the ground. To avoid these mistakes, they suggest doing due diligence on product quality and supplier legitimacy before listing items for sale.

• 00:05:00 In this section, the speakers discuss the risks and challenges of using the traditional drop shipping model, particularly when sourcing products from China through platforms like AliExpress. They explain how high competition leads to low margins and poor quality products, resulting in a flood of customer complaints and returns. The speakers warn that while initial sales may be promising, the long-term business sustainability is questionable due to the lack of control over product quality and customer experience. They emphasise that building a successful dropshipping business requires a solid foundation and a focus on providing a positive customer experience, rather than just making quick sales with low-quality products.

• 00:10:00 In this section, the speakers discuss the challenges and drawbacks of the traditional dropshipping model, where merchants source products from suppliers without building a relationship or owning inventory. They highlight the issue of long delivery times from overseas suppliers, which can erode customer trust and lead to dissatisfaction. The speakers also mention the high competition in this model, resulting in numerous carbon copy stores on Shopify. They emphasise that neglecting customer satisfaction is a surefire way to lose money in dropshipping. If listeners have noticed signs of these issues in their business, they should pause and reevaluate their model, looking out for consistently high refund requests, poor product quality, and negative reviews as red flags.

• 00:15:00 In this section, the speakers discuss common issues with the traditional dropshipping model on Shopify. They explain that thin profit margins can be a result of high acquisition costs through advertising channels, import taxes, currency exchange rates, and returns. The speakers share personal experiences of poor product quality and returns, leading to frustration and financial loss. They suggest reevaluating the business model and recommend the "home turf advantage" model as an alternative. This model involves partnering with domestic suppliers for faster delivery, better quality control, and higher value products with larger profit margins. By focusing on premium products and avoiding the challenges of low-value items and international shipping, this model can lead to a more effective and profitable business.

• 00:20:00 In this section, the speakers discuss the benefits of the "home turf advantage" model in dropshipping. According to them, this model simplifies the e-commerce business by allowing retailers to make profits on the first sale, reducing the pressure to make ads work and waiting for subsequent sales. Additionally, it enables retailers to build a strong brand by offering premium customer service and building customer loyalty, which can lead to asset value and potential business sale. The speakers also suggest that understanding how to lose money can help retailers identify profitable strategies, such as working with local suppliers, high-ticket items, and exceptional customer service. Successful dropshipping stores using this model offer white glove delivery and personal concierge support to create a lasting impression on customers and encourage repeat business.

• 00:25:00 In this section, the speaker emphasises the importance of having a profitable margin to invest in marketing efforts and website improvements. He compares it to setting up a shop on a busy High Street, where premium prices are paid for digital real estate and high traffic. The speaker also advises regularly updating product offerings based on customer feedback and automating processes for continuous improvement. To start a successful dropshipping business, he suggests focusing on high-ticket items with good quality and reliable supplier relationships for exceptional customer service. The speaker also promotes his book, "The Home Turf Advantage," for building a profitable dropshipping business.

• 00:30:00 In this section, the hosts answer a question from a listener named Emily Jones who is struggling with analysis paralysis when choosing a niche for her store. The hosts advise Emily to use data to guide her decision-making process instead of relying solely on emotions. They suggest following the criteria outlined in the "Home Turf Advantage" book, which includes looking for a niche with proven potential, existing search demand, and suppliers who will work with her. By making decisions based on data, Emily will feel more confident and the analysis paralysis will dissipate. The hosts also remind listeners that there is no perfect niche and encourage taking action instead of searching for perfection. They also thank a recent reviewer, Savannah, for her positive feedback and encourage listeners to share the podcast with their networks to help others get started in e-commerce.

---------------------------------------------------------

FOLLOW:

Instagram: https://www.instagram.com/dropshipunlocked/

Twitter: https://twitter.com/DropshipUnlockd

LinkedIn: https://uk.linkedin.com/company/dropship-unlocked

Youtube: https://www.youtube.com/c/dropshipunlockedlewissmith

Website: https://www.dropshipunlocked.com/

---------------------------------------------------------

🌏Want to create location, time and financial freedom? Watch Our Free Training ➽ https://www.dropshipunlocked.com/free?el=blog-89-how-to-lose-money-dropshipping

---------------------------------------------------------

★★★Dropship Unlocked - Lewis Smith★★★

How to Launch a UK Dropshipping Business Offering Next-Day Delivery...

...Even If You Don't Yet Know Which Products To Sell

🌏Watch Our Free Training ➽ https://www.dropshipunlocked.com/free?el=blog-89-how-to-lose-money-dropshipping

Join Lewis Smith, Founder of Dropship Unlocked as you build and launch your high-ticket dropshipping business.

📺 Don't Forget to SUBSCRIBE to our Youtube Channel! (Its Free)

🔰 SUBSCRIBE here ➽https://www.youtube.com/channel/UC9r29zg3RE4e-zDDwVjdJOA?sub_confirmation=1