Women Powering Ecommerce

038 - The Truth About Dropshipping: Why I Left the Hype Behind

Written by Suzie Cyrenne | Oct 12, 2023 12:00:00 PM

Welcome to another episode of Women Powering Ecommerce. In today's installment, we're going to delve into the world of dropshipping, a business model that has gained immense popularity over the years. We'll explore my personal experience with dropshipping, the challenges I faced, and why I ultimately decided to bid farewell to this entrepreneurial journey. So let's embark on this adventure together and uncover the highs and lows of dropshipping.

The Birth of Suzie and Bags

Before we dive into the intricacies of dropshipping, let me take you back to the early days of my ecommerce journey. Around 2011 or 2012, I embarked on an ecommerce venture called "Suzie and Bags." It's essential to note that I had virtually no prior experience with the internet, let alone running an online store. I was starting from scratch, a complete novice.

Suzie and Bags became my learning ground, a place where I could make mistakes, experiment, and acquire valuable insights into the world of ecommerce. I sold handbags primarily, and even though I wouldn't say I'm proud of the store's overall success, it served as a stepping stone for my journey.

The Appeal of Dropshipping

During that time, I stumbled upon two suppliers—one in the US and the other in Italy—who offered high-quality leather handbags and were willing to collaborate through dropshipping. The allure of dropshipping was simple: it appeared to be the easiest and most straightforward way to start an ecommerce business. By eliminating the need to manage inventory, handle shipping, and receive products, I could focus solely on the ecommerce aspect—the website itself.

I was thrilled and optimistic. I received samples from both suppliers, tested their products, and was satisfied with the quality. This prompted me to launch my online store, believing that dropshipping was the ideal business model for me.

The Cracks in the Model

However, as time passed, I began to notice significant shortcomings and challenges inherent to the dropshipping model. These issues eventually pushed me towards a different business approach. Let's explore the four main stumbling blocks that led to my decision to quit dropshipping.

  • Saturation: Dropshipping's low entry barrier attracted numerous entrepreneurs, just like me. This led to a saturation of the market in certain niches, such as handbags. Perhaps I should have chosen a different product or niche, but these were the decisions I made, and they shaped my journey.

  • Return Policies: Without physical control of inventory, handling returns, especially from international suppliers, became complex. Where should customers return their products? Our suppliers didn't accept returns of new items, so what should I do with them? These questions posed significant challenges.

  • Customization and Branding: Dropshipping limited the scope for branding and offering customized products. There was also the risk of customers finding the same product on other websites, which was not ideal, especially in the fashion and apparel industry.

  • Supplier Reliability: This was the primary reason I decided to quit dropshipping. Quality inconsistencies in the products I received from my suppliers were a recurring issue. Unpredictable shipping times and unreliable suppliers could potentially harm my business's reputation.

The Value of Control

The most challenging aspect of dropshipping for me was the limited control I had over product quality and shipping. When a customer complained about a product or shipping delays, I felt powerless to provide immediate solutions. This misalignment with my values as a business owner pushed me to seek alternatives.

Dropshipping isn't dead; many businesses still thrive using this model. However, my answer to the question, "Can I deal with the issues of dropshipping?" was a resounding no. I value control over my products, shipping times, and supplier reliability. I believe that having as much control as possible ensures a better customer experience. For me, the benefits of not pursuing dropshipping far outweighed the potential benefits.

Conclusion

In wrapping up this journey, I hope my experiences shed light on the world of dropshipping and the challenges it can pose. Every business model has its advantages and drawbacks, and what works for one may not work for another. My decision to leave dropshipping wasn't a condemnation of the model but a recognition that it didn't align with my values and goals as an entrepreneur.

Thank you for joining me today on Women Powering Ecommerce. I hope you've gained valuable insights and inspiration to pursue your own business goals. Please follow me on social media and subscribe to our podcast to stay updated on future episodes. Together, we can empower more women in business.

See you next time!