What are the Cons of Drop Shipping?

Publish date: 19 June, 2022 written by Rania Jamal

As drop shipping can be an easy way to start your own project or grow your business, it may also have many consequences and negatives as in anything else, drop shipping is the retail process that the broker carries out by connecting the seller to the buyer, where the broker can Building his store at the lowest possible cost and displaying products in it, but the intense competition that we see in this field today has dashed the dreams of many in the hope of winning this fierce war.

Shipping costs

Although most shipping suppliers impose distinct shipping costs, they are of course more than the cost of the product itself, meaning that the customer incurs the costs of the product, shipping costs and taxes all together, in addition to the widening of the supplier circle increases the volume of payments on shoppers and thus decreases their visit rates .

Market saturation

Drop shipping has become one of the most prevalent forms of e-commerce in Egypt due to its ease of application and affordability, which has increased the competition between different electronic stores, as the shopper has seen offers and discounts everywhere, so drop shipping stores are no longer the only means available to him, especially It's sometimes more expensive than traditional stores "due to shipping costs and taxes".

Low quality products

The main damage that causes the loss of the broker is his lack of interest in the quality provided, because his role is primarily centered on connecting the customer with the seller and nothing more, and therefore he cannot see and inspect the products, and although he is not responsible for the shipping process, he is the only accountable for problems related to quality The product and supplier errors, as some of them became profitable, forgetting the importance of achieving customer satisfaction in the success of their project.

Difficulty in offering competitive prices

The intense competition in the online market and the ease of establishing Dropshopping stores have made it difficult to determine the appropriate prices for products, which may cause a big loss in the event that the required sales are not achieved, and it is almost impossible to compete with major stores that have greater purchasing power by providing wholesale services. .

Lack of control over supply chains

Unfortunately, the broker does not control the storage, shipment, display, or determination of shipping costs, which may negatively affect the ability to track the shipping process, especially if the supply chain is large or if the customer purchases products from several suppliers, and at the same time there are some suppliers who do not have communication channels The electronic mail has already escaped control of the broker’s hands and further complicates the shipping process.

Building a brand name is difficult

Regardless of the ease of learning and working with drop shipping, on the other hand, you will find it very difficult to build your own trade name, especially since the online market has become full of huge brand names that are difficult to counter, where the success of the project depends mainly on the trade name if it is not chosen. Correctly, it is possible to condemn your project to failure from the beginning.