Uncovering The Truths Of Dropshipping 2022

Here’s one thing we all know about dropshipping as a fulfillment method – it’s not a process of keeping products sold in stock.

Through dropshipping, your business must purchase products from your third-party wholesaler. This helps you fulfill your customer orders.

Although this seems like a typical process you hear in the ecommerce industry, there’s more to dropshipping than meets the eye.

The Vagueness In Dropshipping Success Rates

It’s hard to determine your success rate in dropshipping. Most entrepreneurs consider this a medium-risk business. Here’s a sample story from Reddit we’ve encountered so far from a business owner who struggles in dropshipping. 

For drop shippers, there is an estimated success rate of about 10% during the first year of operations.

The most common dropshipping failures are a result from using too much capital on marketing efforts. Most business owners reconcile spending so much on marketing because  It’s consuming too much money on paid marketing. Remember, you can’t spend more than you’re earning when it comes to marketing. 

The Hard Truths Behind Dropshipping

No doubt, it is common for drop shippers to become emotional. Most of the time, these drop shippers are inexperienced in risk-taking ability. Thus, they miss out on elements like feasibility studies. 

If you’re a business owner looking to ship products for your online store, it’s challenging to know what you don’t know. 

But here’s the good news- when done right, dropshipping can be a solution that brings benefits to your ecommerce business. Start by understanding some of the hard truths behind this business method. 

Low-Profit Margin

If you don’t manage your store or inventory, there is a chance for low overhead and returns.The concept feels like less money in, less money out.

It will feel like a lot is required of you, just for your business to stay afloat. Your low margins make it challenging for you to cover operating costs and expenses.

Pro tip: It’s more reasonable to approach dropshipping when you already have a regular source of traffic.


There is only a little capital required in dropshipping. This results ton low-barrier entry. Thus, making the competition fierce in popular markets. Chances are, you don’t even have an exclusive deal with your suppliers.

Your competitors could already be selling the same products you offer too!

No Control Over Supply

It’s hard to address issues on product quality, fulfillment speed, and return policies which are common concerns from customers. These elements are out of your control. 

On top of that, you also risk yourself experiencing delays in communication as you go back and forth with your suppliers and customers. 

Legal Liability Issues

There are suppliers who aren’t as legitimate as they claim. It becomes challenging to know where the merchandise comes from. Thus, posting harm to your business. 

The Bottomline

At the end of the day, success in dropshipping isn’t a walk in the park. But it’s possible.

If you want to get better at dropshipping, the best thing you can focus on is timely delivery. Apart from that, it’s also important that you focus on creating value for your users. Dropshipping success stories often resurface from quality, on-time delivery, and the ability to go beyond what’s expected of you.