If you are looking to make money online, chances are you have heard of drop shipping. Drop shipping is without a doubt a great way to earn money, and a legitimate way as well. But is drop shipping worth it?
From my experience with other make money online methods, I would actually say that NO, its not worth it. And I know what you are thinking. But you just said it “is without a doubt a great way to earn money”. Why would you say it isn’t worth it?
The answer is simple. Its just not worth it when comparing it to other methods. I can only speak from my own experience and from that I would not tell friends to go down the route of drop shipping.
Why I Don’t Care For Drop Shipping
I could probably name a bunch of small reasons why I don’t care for it, but to keep this simple and short, I’ll name the main reasons here and then go into more detail after.
3 Reasons I Don’t Care For Drop Shipping
- You Need To Deal With Customer Service… UGH
- Payment Problems!
- The Available Products (Usually) Aren’t Good Quality
Reason #1 – Customer Service
If you think dealing with customer service is annoying as a customer, try being the one on the other side providing the service.
If you are drop shipping then customer service is a must. YOU are the one selling the products and YOU are the one who has to deal with the customers. There WILL be customers who complain about any and everything.
“The product I received isn’t as red as it was in the picture; It looked smaller than it actually is; It took too long to ship; I don’t want it anymore; I WANT A REFUND”
You will hear it all, and if you want a good reputation as a business you will have to tend to your customers with the utmost respect, even if they are being jerks.
The amount of customer service you will actually need to provide will of course depend on how many products you are selling and how many customers you have. But no matter how big or small your drop shipping business, customer service is a MUST and it is a pain in the ass.
Dealing with customers was a real hassle for me and one of the main reasons why I turned away from drop shipping as an online business.
Reason #2 – Payment Problems!
This is a reason that you may not even think of, but as a drop shipper you WILL run into it and it WILL be more than once.
Since you are selling the products directly from your website, you will need a payment processor. These include Paypal, Stripe, Amazon Payments, etc.
You will have technical problems with your payment processor now and then, but that’s not what I’m talking about here. I’m talking about the payment problems you will have with customers.
There WILL be those customers who demand a refund for no good reason. They will say they didn’t order what they got, even though they did, and they will want their money back. And there WILL be those customers who file complaints through PayPal or whoever, and then you are the one who has to deal with it.
You WILL be forced to either argue your side of the story and prove them wrong or you will have to pay the refund. I used Paypal as my main payment processor when I was drop shipping because it is a well known and trusted name that most people are comfortable with. And when there is a complaint opened against you Paypal will demand you furnish proof of your side of the argument. This means screenshots, emails, any solid proof of what you are saying.
Having to refund people’s money who probably don’t deserve a refund is pretty much inevitable. Paypal, along with a lot of other payment processors, does not support drop shipping. Its already bad enough that they don’t support it, and if you get complaints they will likely drop their service with you.
Payment processors is another hassle of drop shipping that led me away from this business model.
Reason #3 – Products Are Generally Low Quality
As a drop shipper need to get products directly from the manufacturers. The problem is that most of the GOOD products aren’t available to you.
For example: As a drop shipper you aren’t going to be able to get Nike Shoes, Apple Tablets, or Rolex Watches at wholesale prices.
Because name brands like these can only be sold by authorized retail outlets. Individuals like you and I can’t get our hands on them.
So what are we left with? We are left with the knockoff Nike Shoes, the knockoff Apple Tablets, and the knockoff Rolex Watches. Products that really aren’t that great.
As an online business owner I really wanted to sell people good quality products that I personally would be ok with if I bought them. But as a drop shipper I found myself often selling crap products just to make money, and I felt as if I were ripping people off a lot of the time.
I wanted to build a strong and reputable online business, but unfortunately the product selection made that all the more difficult, which is another big reason I just don’t care for drop shipping.
My Preferred Business Model
As I said earlier, for me, I found drop shipping to NOT be worth it only because there was a better method for me to make money online. Drop shipping does work, and you can make plenty of money, its just not my choice.
So how do I make money online?
Affiliate marketing is SO much less complicated and just an all around easier business model.
With affiliate marketing I don’t have to actually sell the products, I just promote them and help make sales. Because of this I…
- Don’t Need Customer Service
- No dealing with customer comlaints! No returns, no arguments, no hassle
- Don’t Need a Payment Processor
- I’m not actually selling the product so I don’t deal with payments. The seller who I am promoting the product for deals with all that stuff.
- Can Choose GREAT Products
- With affiliate marketing you can promote for big companies like Nike, Apple, and Rolex. You can promote just about any high quality product there is and help people get something good that they will be happy with.
Affiliate marketing’s business model is just so much more simple. With drop shipping it can get very overwhelming if you are running your business by yourself, but to run an affiliate marketing business by yourself is nothing complicated and anyone can do it.
How To Get Started In Affiliate Marketing
You can get started without any startup costs, which is pretty awesome. Signing up for affiliate programs is absolutely free. The only thing that will cost you is buying a domain and paying for website hosting. But if you go to Wealthy Affiliate you can get 2 free websites with hosting.
Wealthy Affiliate is an awesome online business training center that provides a wealth of training to get you started in affiliate marketing. They also have great support and provide you with necessary tools to be successful.
If you want to get started in affiliate marketing I suggest you read my review of Wealthy Affiliate Here. The awesome thing about Wealthy Affiliate is that they have a free membership (free for life), where you don’t even enter credit card info.