eCommerce Shipping is a necessary evil for businesses. It can be expensive, time-consuming, and frustrating. But it doesn’t have to be that way!
You see, there are a lot of shipping misconceptions going around which may scare you away. However, in this article, you will learn the 5 most common shipping myths that exist today and how they are holding your business back from growing.
By debunking these myths, you will finally understand how to ship faster and more efficiently than ever before so that you can focus on what really matters – running your business! So let’s get started!
- Dropshipping is Illegal
Dropshipping is not illegal. What’s illegal, however, is acting as a courier/freight forwarder without a proper license to do so.
Furthermore, if you’re going to undertake dropshipping opportunities outside of your business’s country of origin (e.g., dropship from China), then you’ll probably need to apply for an import/export license.
Follow the laws that relate to your country and the potential drop ship location(s).
- Dropshipping Makes You Rich Quickly
If you’re chasing the dream of getting rich quickly with dropshipping, then you’re going to be disappointed. Dropshipping is a slow-growth business model that requires some upfront cash but carries huge potential long term.
- You Need to Build a Website to Start Dropshipping
You don’t need to build a website to start dropshipping. Instead, you could launch on Amazon – it’s the largest eCommerce store in the world and its best-selling products are perfect for dropshipping.
- You Can’t Sell Products Online If They Are Under Warranty
False! Many manufacturers offer warranties on their goods (though they may be conditional), and most major brands sell directly via their own website – they make money off of replacement parts or repairs through these channels
- You Need to Hire Employees to Start Dropshipping
Dropshipping is not scalable – it can’t be done with employees yet. The more people you add, the more problems you’ll have communicating downward so that new orders get processed promptly. Your existing employees also need training, which increases your payroll costs.
- Amazon Has An Approval Process for Selling Dropship Products On Amazon Marketplace
Amazon does not have an approval process for sellers who want to sell wholesale goods on Amazon Marketplace. There are some requirements you need to meet, and Amazon can choose to put your account in a probationary period if certain requirements aren’t met – however, it’s not an approval process per se.
Go here for advice on order fulfillment.
- You Can’t Sell Alcohol on Amazon Marketplace
You can sell alcohol on Amazon Marketplace. It all depends on the state laws in which you operate your business!
For example, in Illinois, beer distributors may hold an exclusive franchise that allows them to distribute beer only. In such cases, the law prohibits direct sales from breweries and limits sales of their products through distributors.
- The Only Way to Make Money Dropshipping is Through Selling Your Own Products
False! While selling your own products may be the best way to make money dropshipping, you can also take advantage of other opportunities.
The reason being that buyers are often looking for discounts on popular products – they want to save money! You can sell these kinds of products at a discounted price, and then once the customer receives their order, your return process begins.
For example, you send out a replacement order quickly but charge them an additional fee. This is called order splitting/order bumping.
- You Have to Charge Sales Tax on Every Order
You don’t have to unless you have a brick-and-mortar store. If you don’t have a brick-and-mortar store, then there’s no need to collect state/county/province taxes on eCommerce orders. When in doubt, consult your accountant or legal advisor for official guidance.
- You Can Offer Free Shipping Without Losing Money
Simply put – it takes a lot of money to offer free shipping, especially if you have a high-ticket or high-volume product. In this case, you’ll need to factor the cost of your shipping solution into your overhead costs – it’s not as simple as sending a small package via USPS First Class Mail.
- Collecting Sales Tax is a Nightmare
Actually, it isn’t that bad. You can use a tool like Avalara AvaTax, TaxCloud, or TaxJar to manage all of your sales tax quickly and easily – just imagine how much time you’d save if you didn’t have to file manually anymore!
- You Can Only Dropship to and From the United States
False! You can drop ship to anywhere in the world you like – it all depends on your product. If your product is lightweight, then you might be able to ship your order via USPS First Class Mail; otherwise, you may need to use a shipping provider like FedEx or UPS.
- Every eCommerce Store Owner Needs Shopify Plus/Merchant + or Magento Enterprise Edition
Not true at all! All eCommerce store owners need are affordable and scalable solutions that allow them to get started quickly without breaking their budget. For example, Bigcommerce, WooCommerce, PrestaShop, etc. offer great features for new eStoreowners with limited budgets – if this sounds like you, then take advantage of these platforms instead of going with expensive solutions like Shopify Plus/Merchant + or Magento Enterprise Edition.
Want More eCommerce Shipping Advice?
We understand how exciting it can be to run and own your own eCommerce store. We also understand how challenging shipping can be at the best of times. However, there are a lot of misconceptions around this topic and we hope this article has debunked many of them.
Thanks for reading, and remember to always consult with postal carriers or shipping providers before believing anything new about eCommerce shipping!
If you liked this pose be sure to check out this blog for more articles on the eCommerce industry, smart shipping, handling your shipping department, and order fulfillment as a small business owner.