1. Competitors Stealing Your Dropshipping Business
The biggest problem I have with dropshipping is that the majority of courses will teach you to go out and copy other dropshipper's businesses that's already working.
And its so easy to copy someone's FB ad, funnel, shopify store & the product. (sure this makes it easier to create short-term success but it is not good long-term because what's preventing someone else from doing the same thing to you?)
People opt to copy because only trending products that can get impulsive purchases will convert high enough with Facebook ads to be profitable.
Remember with FB ads, you're paying $$$ for every impression, so without high enough click through rate (CTR) or conversions, you're bleeding cash.
If the product doesn't have some sort of viral component, it just doesn't get high enough clicks on Facebook.
Remember most people on Facebook ain't there to purchase anything.
This is why dropship guru's preach the importance of testing, testing & testing.
But testing can become expensive as well, what's easier than testing your way to find the winning product?
Simply copy someone else's winning product.
Honestly this is my main issue with the dropshipping model, because its so easy to be copied by competitors, it causes any successful Shopify business you build to be only a short-term success.
This means that every winning product will eventually get saturated as other drop-shippers come in and cannibalize each other.
And this life cycle is getting shorter and shorter as more and more people get into dropshipping.
Making this business model more and more short term every year.
See the issue?
A lot of great people out there trying to teach dropshipping but imo the main problem here-in lies at the very core of this business model.
if you want a sustainable business, you want something that requires some high-level skill like digital marketing (especially being able to rank sites organically in Google which is more difficult skill to master aka most people don't know how to do it).
That difficulty in skill creates higher barrier of entry, which means once you master the skill, you are more valuable in the marketplace because you have a skill that's rare, similar to a plastic surgeon.
In this society, $$$ is assigned to high-demand, limited resources or skill.
Dropshipping to me is like digital ditch digging.
Sure you can make quick buck here & there.
But it's not true leverage because softwares like Clickfunnel & Shopify made the biz a lil' bit too easy for anyone to do.
2. Riding the Wave of Trends Can Be Short-Lived
Jared Goetz coined the term "drop surfing" because the recommended way of finding the product to dropship is to find current trends and ride that viral wave like a surfer.
This makes whole lot of sense because if something is trending, you don't have to educate the public on it, your ad is immediately going to garner attention because the awareness is already there.
You just turn that awareness into $$$.
The problem though is that all trending products eventually die out.
Which means that dropshipping really isn't a sustainable nor
5. Competitors Stealing Your Dropshipping Business
Even the top 2 dropshipping courses on this list (eCom Hacks & eCom Elites) teach the method of researching competition and copying what's already working.
You can literally rip someone's FB ad, funnel, store, & even the product, in couple hours.
This takes all the guess work out of it.
Sounds great on the surface, but in actuality not a huge fan of this model.
Because what's preventing someone else from coming in and doing the same thing to you.
This makes dropshipping more of a short term play.
Eventually that niche will get saturated, CPC will go up, and the product becomes unprofitable.
Therefore, the dropshippers that have created a sustained business are investing serious capital to create their own unique product that cannot be duplicated.
You need to be a savvy product creator / innovator and have at least $25K for product design & production.
In business, "Easy" is overrated.
Because if a business is too easy for anyone to do, it gets saturated quickly.
You don't want to get into a business where the barrier of entry is so low.
Why do you think plastic surgeons make a lot of money for the rest of their career?
Because they have a skill that not too many people can acquire.
This is why I hedge towards businesses that actually require a high-level skill to operate, like lead generation. (Not so easy for someone to come in and copy your business)