The Dropshipping Plague: A Tough-Love Guide for When You Just Have to Join the Bandwagon

November 16, 2024

Ecommerce

Successful dropshipping brands transformation - from AliExpress reseller to premium ecommerce brand

TL;DR: Your dropshipping dreams are cute, bestie, but here's the tea - stop trying to get rich quick selling AliExpress junk at 500% markup. Either build a real brand that solves actual problems (revolutionary, I know 💅), or keep that day job.

The math isn't mathing, and your "luxury" phone cases aren't fooling anyone.

Want to slay?

Test products, price fairly, and actually give a damn about your customers. Wild concept.

Let's get real for a hot second - dropshipping has become the pyramid scheme of eCommerce. Everyone and their dog is selling the "same exact phone case from AliExpress" for a 500% markup while calling themselves an entrepreneur. (And no, adding "luxury" to your product title doesn't make it luxury, bestie.)

The Tea About Why Most Dropshippers Fail

Want to know why 90% of dropshipping stores crash and burn within their first month? Because they're built on the "get rich quick" mentality instead of actually solving problems.

What You Think Dropshipping Is:

  • Upload products, make bank 💅
  • Passive income while you sleep 😴
  • Living that laptop lifestyle in Bali 🌴

What It Actually Is:

  • Answering angry customer DMs at 3 AM 😭
  • Frantically tracking lost packages 📦
  • Explaining why shipping takes 30+ days ⏰

The Math You're Avoiding (Sorry Not Sorry)

Okay bestie, grab your calculator and some anxiety meds because we need to have a come-to-Jesus moment about your "profit margins."

You know that TikTok guru showing you how they made $10k in their first month? They're either lying or forgot to mention the $15k they spent on ads.

Let's get uncomfy with some real numbers, because that $40 "profit" you calculated? It's giving delusion.

Here's what's actually eating your lunch:

The Real Cost Breakdown:

  • Product Cost: $10
  • Shipping: $8-15
  • Ad Spend Per Sale: $20-30
  • Payment Processing Fees: 3%
  • Returns: 10-20% of sales
  • Your Sanity: Priceless

Hidden Costs That'll Make You Cry:

  • Chargebacks: Because some customers choose violence
  • Platform Fees: Shopify isn't running a charity
  • Exchange Rate Fluctuations: The yuan doesn't care about your profit margins
  • Customer Service Tools: Those angry emails won't answer themselves
  • Social Media Management: Because organic reach is basically dead

The Math In Real Life:

That $50 Sale Price?

  • $10 Product Cost
  • $12 Average Shipping
  • $25 Ad Spend
  • $1.50 Processing Fees
  • $5 Return Provision
    = -$3.50 (Yes, that's a negative, bestie)

Plot twist: You can actually make dropshipping work - if you stop treating it like a get-rich-quick scheme and start treating it like a real business.

The Actually-Not-Terrible Way to Dropship

Listen up, you future eCommerce mogul you- let's talk about how to not become another dropshipping casualty. While everyone else is watching 3-hour YouTube videos about "winning products," we're going to do something revolutionary: build a real business.

gasp I know, groundbreaking.

Step 1: Find an Actual Problem (Revolutionary, I Know)

Here's the tea: scrolling through AliExpress at 2 AM looking for "the next big thing" is not market research. Instead of playing eCommerce roulette, try this wild concept: solve actual problems for real humans.

Start by identifying a specific niche where people are actively complaining. Yes, I mean literally reading Reddit threads, Facebook groups, and Amazon reviews until your eyes bleed. Look for patterns in complaints, recurring issues, and problems that make people say "I wish someone would just..."

The Supplier Situation

Before you even think about launching, you need to:

  1. Test your products personally (shocking concept)
  2. Build relationships with multiple suppliers (because backup plans are sexy)
  3. Understand your supply chain better than you understand your ex's Instagram feed

The "Are You Actually Ready?"

Let's be brutally honest - if any of these scenarios make you break out in hives, maybe reconsider:

  • Your main supplier ghosts you during Chinese New Year (it's not if, it's when)
  • TikTok Shop drops prices lower than your cost (hello, 2024 nightmare)
  • Karen demands a refund because the blue isn't "blue enough"
  • Your ad account gets suspended right when you start scaling

P.S. If you're not willing to invest in testing at least 5-10 products before finding a winner, maybe stick to your day job. No shade, just facts. 💅

P.P.S. Remember: The goal isn't to be another dropshipper - it's to be a legitimate brand that happens to use dropshipping as a fulfillment method. Let that sink in.

Hall of Fame vs. Hall of Shame

Listen up bestie, because we're about to spill some scalding hot tea about who's eating and who's starving in the dropshipping world. Let's dive into some deliciously messy failures and genuinely impressive success stories.

The Yikes Gallery (AKA What Not To Do)

Let's have a moment of silence for these dropshipping disasters. I saw all too many of these at my time at Shopify, but I've also seen some impressive brands that actually ate at this as a business model.

While 90% of dropshipping businesses fail in their first 120 days, these ones failed spectacularly. The common thread? They all thought dropshipping was a get-rich-quick scheme rather than a real business model.

The biggest icks include:

  • Those "luxury" watch stores selling $5 timepieces for $200 (the audacity!)
  • Every dropshipper still teaching 2019 Facebook ad strategies in 2024 (bestie, Meta doesn't even work like that anymore)
  • The "I'll figure out customer service later" crowd who ghosted their customers faster than your ex

The Slay Gallery (AKA The Blueprint)

Now for the girlies who actually ate and left no crumbs:

Gymshark: Started by selling dropshipped supplements from their garage in Birmingham, then:

  • Pivoted when they realized supplements weren't profitable enough
  • Started making their own clothing with a single sewing machine
  • Built a 900-employee empire across 5 headquarters

Wayfair: Started in a spare bedroom and turned dropshipping into an empire by:

  • Beginning with just stereo racks and stands
  • Scaling to over 250 niche sites
  • Now offering 22 million products through dropshipping partnerships
  • Reaching $600M in annual revenue after consolidating into one brand

Early Zappos: While they eventually moved away from it, they started as a dropshipper:

  • Began by dropshipping shoes in 1999
  • Used the model to test the market
  • Learned valuable lessons about inventory control
  • Eventually pivoted to their own warehousing for better customer experience

P.S. The secret ingredient? They all stopped treating dropshipping as just a fulfillment method and started building actual brands that people trust.

The "Don't Be Basic" Strategy

Alright bestie, time for some tough love about why your dropshipping store isn't giving what you think it's giving. While you're over there copying product descriptions from AliExpress (the horror), actual successful stores are building empires.

Let's talk about how to not be another basic dropshipper clogging up my Instagram feed.

The Price is Wrong (And We All Know It)

First things first - let's address the elephant in the room: your pricing strategy. If you're slapping a 500% markup on a $2 product because "that's what the gurus said," we need to have a chat. Price fairly, but make it make sense.

This means:

  1. Understanding your target market's actual spending power
  2. Pricing based on value provided, not TikTok dreams
  3. Building enough margin to survive ad cost spikes (because Meta loves chaos)

Customer Service That Actually Serves

Here's the gag - good customer service isn't just answering DMs with "Hey bestie! 💕" Your customers can smell the fake enthusiasm through their screens. Instead:

  • Create detailed FAQs that actually answer questions
  • Set up automated tracking that doesn't make people want to scream
  • Have real humans available for real problems (groundbreaking, I know)

Community Building That Slays:

Instead of spamming Facebook groups, build a community that actually cares about your brand. Wild concept, I know. This means creating content that people actually want to engage with, not just product photos with "😍😍😍" as the caption.

2024 Reality Check ✨

While you were watching dropshipping guru videos, successful store owners were building actual businesses. The tea is that modern dropshipping requires:

Tech That Makes Sense:

  • AI customer service (but make it human)
  • Real-time inventory syncing (because "out of stock" after purchase is embarrassing)
  • Actual analytics (not just refreshing your Shopify dashboard)

Signs You're Ready to Actually Start (No, Really)

Listen bestie, before you max out that credit card on a Shopify subscription, let's check if you're actually ready to join the dropshipping thunder-dome. Here's your reality check:

You're Actually Ready When:

  • Your market research involves more than watching TikTok "guru" videos
  • You have enough savings to test products without living on instant ramen
  • The phrase "customer service" doesn't give you anxiety hives
  • You understand that "passive income" actually means actively working 60+ hours a week (at first)

Green Flags That You Might Actually Slay:

  • You've identified a specific problem that makes people rage-type in Reddit threads
  • Your test products are sitting on your desk (not just in your AliExpress cart)
  • You have backup suppliers lined up (because trust issues are healthy in this business)
  • Your pricing strategy involves actual math, not just "3x the cost"

P.S. If you're still here after reading about the -$3.50 profit margins earlier, you might just have what it takes.

P.P.S. Remember: The goal isn't to be the next dropshipping success story. It's to be the next successful brand that people don't even realize started as a dropshipper.

That's the real flex. 💅

Hey, I'm eKat!

A recovering corporate eCommerce girly. Serial BS-slayer with a PhD in keeping it real. Clinically allergic to Comic Sans. Part-designer, part-strategist, 100% multi-passionate. Your favorite marketing bro's worst nightmare.

I occasionally start fires in the status quo while I spill the tea on all things design & eComm.

Obsessed with:

💣 Breaking rules that deserve it

🕳️ Turning chaos into cash

🤘 Making design actually work


WARNING: Subscription side effects may include sudden clarity and chronic profitability. Not responsible for sudden urges to rebuild your entire business strategy.

Lemonade Stand Club Newsletter

Consider this your brand's burner phone. Subscribe to get the raw, unfiltered, and definitely not approved by corporate tea on strategies, secrets, and stories of how brands really win.

PS: Your competitors are probably already subscribed⚡

Design

The Art of Digital Seduction: Design Patterns That Convert (Because Let's Face It, Your Website Needs Game)

While you're busy playing safe with your vanilla website design, your competitors are out here serving main character energy. Just saying.
Read
Design

The Brutal Truth About Design ROI (Spoiler: You're Doing It Wrong)

The best time to invest in design was yesterday. The second best time is now.
Read
Marketing

While You Were Planning, They Were Selling: The New Rules of Commerce

Your competitor just sold another 1000 units going live on TikTok while you were reading this.
Read
Branding

The Brutal Truth About Your DTC Dreams (2024 Reality Check)

Read
Wild Card

Building a Brand in Public: The Good, Bad, and Ugly Truth

Liquid Death is out there making $45 million selling water - yes, water - by basically roasting their customers alive. Take note.
Read
Wild Card

Cycle Syncing for Female Entrepreneurs: How Your Period Can Boost Your Business Productivity

It's time to stop apologizing for your rhythm and start capitalizing on it.
Read

Join Lemonade Stand Club

Become part of a community of D2C entrepreneurs, designers, marketers and eCommerce. Access tailored for indie D2C brands and designers that help build them.

Launching Soon!
Sign up to get an exclusive invite.

eCommerce
Design
Branding
Marketing
Wild Card