Is Dropshipping Scalable?

Dropshipping is a prevalent e-commerce model for many reasons. The most prominent is that anyone can get started with a dropshipping business. It’s a low-cost, low-risk way of creating an online store and generating sales.

It’s often mentioned for its beginner potential, which has led some to think that it’s only for newbies. People often ask, “Is dropshipping scalable?”

Dropshipping is a scalable business model – and a pretty good one. The reason is that you can easily adjust dropshipping to accommodate your growth. With traditional businesses – scaling means increasing your workload by a significant amount. That’s not the case with dropshipping. There will be more to manage, of course, but not near what it would be.

Stick around to learn more about dropshipping and how you can scale your operation.

Dispelling Common Dropshipping Myths

First – let’s clear the air on a few common myths about dropshipping. There’s a lot of misinformation surrounding this topic, especially from YouTubers.

Dropshipping Will Get You Rich Quick

There are many influencers out there claiming that you can get rich dropshipping in no time. They’ll say that you can quit your day job and start dropshipping and earning millions. That’s simply not true.

Dropshipping is not a ticket to instant riches. It’s sad that such a stigma exists – because it detracts from the actual value of dropshipping. That is that it’s a fantastic way to get your feet wet in the business world.

Finding success with drop shipping will take time and lots of trial and error. You’ll need to identify which products sell the most and provide the most profit. That’s not something you can learn how to do in a matter of weeks.

If you stick with it, though, you’ll find that dropshipping is a reliable way to earn money online. You can find enough success to make it your full-time gig with some practice and refinement. Just don’t expect it to happen instantaneously.

It Takes Too Long for Products to Ship

This is one of the most prevalent myths that keep people from dropshipping. The narrative goes that nobody will buy your products because they’ll take too long to ship. Well – with modern dropshipping apps like Spocket – that’s no longer the case.

Spocket features the most reputable dropshippers from around the world. As a result – they feature lightning-fast delivery times.

On average – most dropshippers will take about a week to ship products. That’s not unreasonable and is in line with other shipping services. So if you’re hesitant to start dropshipping due to delayed shipping – don’t worry.

Dropshipping Success Stories are All Faked

The last myth we’ll cover is that nobody really finds success with dropshipping. The narrative goes that all those wealthy influencers that you see on YouTube are simply liars.

That’s not true, either.

There are plenty of people that have had tremendous success with dropshipping. Some are even able to earn millions through their dropshipping businesses. Yet – it’s essential to remember that these people put in their hard work to achieve their success. It can take years to establish yourself as a top-dog in your dropshipping niche – so stay patient.

Tips for Scaling Your Dropshipping Business

Now that the common myths are out of the way – let’s dive into scaling your dropshipping business. Like anything else, there’s a right way and a wrong way to scale your operation. You need to know a lot, such as building a team and deciding how to process payments.

Find Suppliers That Meet Your Needs

If you’re going to scale your dropshipping business – you’ll need to make sure your suppliers can handle it. If you’re currently using a small supplier – you’ll likely need to find a new one. You’ll need to work with a supplier to meet your increased demands.

Since you work with a third party to ship and store your products – you need to work in tandem with them. If you’re going to make changes to the size of your business – they need to be involved. Otherwise, you could wind up with demands that are too steep for your suppliers.

Be Wary of PayPal

Do you currently use PayPal to process a lot of your payments? If so, you need to pay close attention when scaling your business. Why? Because they may freeze your account on suspicion of fraudulent activity.

Here’s what happens to many dropshippers scaling their business – they spend a lot more on ads and marketing.

If you double or triple your spending/earning efforts – PayPal will get suspicious. A sudden influx of transactions like this sends a red flag to their internal system.

You could have your account frozen until they verify that there’s no fraudulent activity. Even then – you may still experience the issue in the future. PayPal is built to protect users from fraud – and they have some strict measures in place to do so.

The solution? Talk with PayPal before suddenly scaling your business. Let them know that you’re going to see an increased volume of transactions. That way – they won’t put freeze your account – tying up your income.

Start Building a Team

Scaling any type of business means more responsibilities. More sales mean more customer service calls, emails, supply issues, and busywork. If you’re currently running a solo operation – that won’t fly when you scale things up. That’s why you should start looking into building a team sooner than later.

Luckily – a team of virtual assistants can easily handle the workload put forth by dropshipping. As you continue to scale – pay attention to your labor demands. The last thing you want is to try to run a scaled business that doesn’t have the human resources to operate.

Key Takeaways: Is Dropshipping Scalable?

By now – you should know more about dropshipping and how to scale it. Dropshipping is a fantastic business model for so many reasons. Unfortunately, there’s a lot of untrue information about it online. It’s not a get-rich-quick scheme but a genius business model perfect for anyone willing to learn how to do it properly. If you want to see our full guide on how to Dropship on Shopify follow this link.

For more great content to help you develop your Shopify strategies, check out the rest of the merchant posts on the site. If you want to see a list of our top recommended Shopify apps visit this link here.

Davon Wilson

I'm a certified Shopify expert, you can usually find me on my computer coding, or thinking about business ideas. I'm an avid Ravens fan and an overall nice guy.

Recent Posts