Dropshipping has become an increasingly popular business model for entrepreneurs looking to start an online retail business. However, there are several myths and misconceptions surrounding dropshipping that can confuse and deter potential business owners. In this article, we will debunk seven common dropshipping myths.
Myth 1: Dropshipping is illegal during trade wars
One common misconception about dropshipping is that it is illegal during trade wars. While it is true that trade wars can impact the cost of goods and shipping times, dropshipping itself is not illegal. In fact, many dropshippers use suppliers from different countries to avoid tariffs and trade restrictions.
Myth 2: Wayfair vs. South Dakota ruling affects dropshippers
The Wayfair vs. South Dakota ruling, which allows states to collect sales tax from online retailers, has caused some confusion in the dropshipping community. Many dropshippers worry that they will now be responsible for collecting and remitting sales tax. However, dropshippers are not considered the retailer in dropshipping transactions, so they are not typically responsible for collecting sales tax.
Myth 3: Dropshipping is not affected by tariffs
With the ongoing trade war between the United States and China, tariffs have become a significant concern for dropshippers sourcing products from China. Tariffs can increase the cost of goods and impact profit margins for dropshipping businesses. It is essential for dropshippers to stay informed about trade agreements and potential tariffs that may affect their business.
Myth 4: Dropshipping is easy and requires minimal effort
While dropshipping can be an excellent way to start an online business with minimal investment, it is not a get-rich-quick scheme. Successful dropshipping businesses require time, effort, and dedication. From product research and supplier management to customer service and marketing, running a dropshipping business involves various tasks that require attention and effort.
Myth 5: Dropshipping is a saturated market
With the increasing popularity of dropshipping, some entrepreneurs believe that the market is oversaturated, making it difficult to succeed in the industry. While it is true that dropshipping is a competitive market, there is still room for new entrants to carve out a niche and establish a successful business. By focusing on unique products, excellent customer service, and effective marketing strategies, dropshippers can differentiate themselves from competitors and attract customers.
Myth 6: Dropshipping is a scam
Some people believe that dropshipping is a scam because of misconceptions about the business model. While there are dishonest individuals in any industry, legitimate dropshipping businesses operate ethically and provide value to customers. It is essential for aspiring dropshippers to research suppliers, products, and market trends to ensure they are partnering with reputable companies and offering quality products to their customers.
Myth 7: Dropshipping is a quick way to make money
Many people are attracted to dropshipping because of the potential for high profits with minimal investment. However, dropshipping is not a guaranteed way to make money quickly. Like any business, it requires time, effort, and perseverance to build a successful dropshipping enterprise. It is important for dropshippers to set realistic goals, develop a solid business plan, and be prepared to face challenges and setbacks along the way.
In conclusion, dropshipping is a legitimate and viable business model for entrepreneurs looking to start an online retail business. By debunking these seven common dropshipping myths, aspiring dropshippers can better understand the challenges and opportunities of the dropshipping industry and make informed decisions about starting and running their businesses.
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So, what do you guys think about the Wayfair vs. South Dakota ruling? It was a pretty big moment for online retailers (even if it's currently only applicable for large ones)!
Plz plz talk lilll slow…dear sister , my english is very low
Aren't we the business owners the "importers"? Not the customer? So that would make it easy for us to go over the $800.
Thank you, Sarah, always so much valuable information from you!
why is she so cute
Canada has a low threshold due to greed. They love to make money off of ppl. They have no soul.
Why isn't anyone discussing the fact that Ali Express is now charging sales tax on all items purchased?? I can't find anyone addressing this!
WHWEW IS MY "FREE DROPSHIPPING GUIDE" April 06/ 2019? my email: net4page@gmail.com Doug Wright
UK has a very low threshold for customs duty and VAT (sales tax) – and both can be payable on imports
Denmark has under 10 USD threshold. And Sweeden has 0 USD threshold
Emileosworld.com
US to hold off on raising China tariffs to 25 percent US to hold off on raising China tariffs to 25 percent.
Chinese President Xi Jinping and U.S. President Donald Trump put their bilateral trade war on pause momentarily,striking an agreement to hold off on slapping additional tariffs on each other's goods after January 1, as talks continue between both countries.
In a White House readout of a dinner at the G-20 summit in Argentina, Xi and Trump discussed a range of nettlesome issues — among them the trade dispute that has left over $200 billion worth of goods hanging in the balance.
"President Trump has agreed that on January 1, 2019, he will leave the tariffs on $200 billion worth of product at the 10 percent rate, and not raise it to 25 percent at this time," the statement read. Over the next 90 days, American and Chinese officials will continue to negotiate lingering disagreements on technology transfer, intellectual property and agriculture.
"Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent," the statement added.
I love your videos. They are always packed with helpful information! keep them coming!
Great video but when I order your free book nothing happens. What is going on?
Hello and thank you for your very interesting videos. A few days ago I lived in the Canary Islands (Spain) and I ordered a tablet on Amazon. In order to get it, I had to give around 100 Euros to the postman. Sooner, I found out that the tablet wasn't right for me and I sent it back to Amazon at no cost, yet my 100 Euros in Canary taxes were gone. I think this is an interesting case study. In fact, many Amazon suppliers don't ship to the Canary Islands.
Your videos are great, I love you! Greetings from Germany
This is one reason Amazon doesn't like dropshipped items. While searching for products to sell in my online store. One of my items contain ABS plastic which isn't harmful at all but I needed to make sure. I then continued my research with a reverse image search and found another dropship supplier selling an item almost like mine. it was on Amazon. I went to the account to find out who was the seller. The item was no longer available. So I went to their actual Amazon store to see that NONE of their items were available. I found out that their dropship supplier was http://www.Tmart.com. The link that I provided will explain why Amazon doesn't like drop shippers. https://www.trustpilot.com/review/www.tmart.com
China has low and good quality.
what about the epacket thing now? hear hes leaving the agreement
Dear Sarah please talk about the changes to epacket putting a stop to low cost shipping from USPS, how that is affecting dropshipping and any solutions you have to those changes.
You can ask the Ali Express store to dropship for you.
Thank you for the information, learn a lot
I love your videos! Really useful information.