If this is your first time with drop shipping and you are using it as an online income source, then be aware of the risks involved! Just like other businesses drop shipping products also comes with its own risks. In order to avoid these risks, always make sure to deal with only the very reputable drop shippers, like Salehoo as it has proved itself for some years now with these kind of online businesses.
One of the most common risks you can face is that your orders for products, that your customers have already paid for, either do not reach them, or fail to reach them by the given time. You as a drop shipper will always be dependent on your wholesale partner, to deliver your products to your customers door. Just imagine how embarrassing it is for you, because your customers will not get angry at the drop shipper, but since they have dealt with you, they will hold you responsible, just because the wholesale firm you have is bad. In the past there have been some people who started their online business with a not so well reputed wholesale drop shipper and eventually faced great losses and had to close their business.
Another common risk is when you are provided with wrong information by the whole seller website about a products availability. You, thinking that the product is available, promote it and sell it to your customer. But once the deal is made and you want to deliver it, it turns out that the product you have already sold does not exist in the wholesale stock room! That the information provided to you online was outdated! So far it seems like Salehoo is the only firm that seems to be religiously updating their online website, so if the wholesale you are dealing with is not a member of Salehoo or some other well reputed firm, be prepared for the risks that might come your way.
You will find may review and stories online about the drop shippers who did not investigate properly about their wholesaler and lost their reputation and money in their transactions. Read these stories so that you may not repeat these mistakes and take notes from the lesson they learned the hard way!
Therefore a thorough research is a must before you start, Salehoo has proved to be a big help in the organization of many new drop ship ventures.