I see it time and time again. A young and hungry dropshipper gets all excited in the beginning. They think they’re going to make millions yet this soon ends in failure. They didn’t understand why you must treat your dropshipping store as a business. The young and hungry dropshipper got way too ahead of themselves. This left them with nowhere to go once the going got tough. This doesn’t have to happen. In fact, if you’re smart about it you can actually make millions but only if you start from the ground up.
The problem is people don’t treat their dropshipping store as a business. This leads them to absolutely nowhere. If you don’t treat your dropshipping store as a business how can you expect to get business results? Treat your store like a hobby and that’s all it’s ever going to be.
Here are some of the major mistakes people make when they don’t treat their store like a business:
Why You Must Treat Your Dropshipping Store as a Business – Major Mistakes
You don’t track expenses – Any business that doesn’t track its expenses won’t be a business for very long. Do you want to go broke? I thought not. With that said start tracking your damn expenses. Take account of what exactly you’re spending your money on and in what amounts. Don’t spend money on things you don’t need or can’t afford. If you’re running a tight budget then act like it
You don’t track profitability – You wouldn’t believe how many people believe they’re turning a profit but they actually aren’t. Revenue is not the same as net profit guys. If you’re selling a product at 15$ and it originally cost 6$ that’s a $9 profit margin right? Ok, but what about if it costs you $10 in ad spend to get that one purchase. You’re now at a loss son. Of course, that much ad spend per purchase is excessive but it’s to prove a point. Track everything like any good business does. Know how much you’re paying to acquire one customer. This way you can plan for the future and scale properly.
You suck at customer service – What kind of business treats their customers like trash? A very bad one. Your customers should be the number one priority. They are what is keeping you alive after all. Yes, you should try and acquire more customers but don’t forget about the customers who have been there since day one.
Signs You Suck at Customer Service
Here are some signs you suck at customer service:
- You take two days to reply to a customer email
- Your social media pages do not engage with your customers on social media
- You refuse to offer refunds and replacements even when it’s your fault
- You don’t try to reduce their spend or wait times when it’s possible
Ideally, you want to make your customers life as easy as possible. If you can negotiate with your supplier for reduced shipping times or an additional present, then you absolutely should.
You have terrible branding – Every huge company has amazing branding. Just look at Apple for crying out loud. They have customers lining up for their products overnight. If you don’t have a brand built around your store then you’re leaving money on the table, period. The goal should be to make the customer feel like they’re part of something bigger. Try to give them the tingles when they visit your store. I’m serious, make them feel special. You will be rewarded with increased conversions and sales.
These are some of the main reasons why you must treat your dropshipping store as a business. If you avoid these mistakes then you’re certainly on your way to dropshipping success!