Dropshipping business is among the great ideas that any enterprise or startup can work on for success in the digital universe. Having Shopify dropshipping app can help you earn good bucks without even investing in inventory and deliveries. The Shopify dropship app is a popular concept, so it attracts many people to try their luck with it.
Unfortunately, more than 60% of people building Shopify dropshipping apps often fail to get any concrete success with them. You must be wondering the reasons behind it, so today, we will discuss seven mistakes that people make while building, launching, or operating a Shopify dropship app.
What is a Shopify dropship app?
To understand it, let’s discuss dropshipping and how they work. Dropshipping refers to a business fulfillment model where a business or an online platform does not need to own inventories. The dropshipping business owner purchases the items from third-party suppliers once he receives the order from his users. The suppliers will be responsible for delivering the items to the users and handling returns and exchanges.
A Shopify dropshipping app refers to a mobile application that lists products from various sellers. The users can browse these products and buy them using their shopping cart and checkout process. The supplier can be a manufacturer, wholesale dealer, or another retail platform. Below are some features of Shopify dropship apps:-
- The owner of the Shopify dropship app does not need to maintain and manage the inventory.
- All the products listed on any Dropshipping app belong to third-party suppliers.
- The app owner earns on a cost per sale basis where he gets commission for every sale done on his platform.
- Sellers or suppliers handle the delivery and return of the products.
- Shopify dropshipping app owner provides checkout process and payment gateways to complete a purchase.
- The suppliers have their admin panel to manage the inventory and list new products.
What are the common mistakes people make with Shopify dropship apps?
Despite being a practical and profitable business model, many Shopify dropship apps fail to achieve satisfactory success in the real world. Below are some of the mistakes that you should avoid while working with Shopify dropshipping applications:-
Low speed and performance
One of the major issues that fail dropshipping applications is the low performance of your app. If your app is sluggish, the users will not prefer buying products using it. Take help from the experts to enhance the performance of your dropship apps.
Outdated User Interface
The user interface is one of the most crucial factors for gaining success with your drop shipping applications. If you fail to have a good interface for your application, your users may resist doing transactions. Examine the similar apps in the industry for the features that are strengths of those platforms.
Bad Customer Journey
The customer journey since landing on our application and making the final purchase should be flawless. Users should not face problems like long forms for checkout. In short, the checkout process should be smooth and fast so that there is a lower rate of cart abandonment.
Unacceptable Low Margins
It is common to adopt strategies like working on low margins to tempt the suppliers on your dropship applications. Well, initially you may find it working for a while, but it has negative consequences in the long run. Such strategies can cut down your revenues significantly to the extent that you think that your app is not profitable.
Unavailability of Trusted Suppliers
People often add so many suppliers without verifying whether they are trustworthy or not. If your users face bad experiences due to the unreliability of those sellers, you will lose them. Always follow a strict process for seller onboarding to maintain a good reputation for your app.
Lack of multiple payment gateways
Many Shopify dropship app owners often rely on the default payment gateways for their apps. You should try to integrate other popular payment methods to encourage the users to complete their purchases. Hire a Shopify expert because he can provide enhanced payment options like consumer financing to your users.
Lack of promotional activities
Not giving value to the promotional activities can be a cause for lower returns from your Shopify dropshipping app. You should take help of the seasonal sales, discount codes, deals, and other promotional techniques to promote the products and services. You must have heard how popular online sales like Black Friday or Cyber Monday reached billions of dollars worth of sales every year.
These were some mistakes to avoid while working on a Shopify dropshipping app. It is recommended to take the help of the seasoned expert to build a Shopify dropship app as they know the ins and outs of the industry better than anyone else. Always prefer to take help from a reputed Shopify development company because they provide the best results with Shopify dropshipping applications.