Avoid These Dropshipping Mistakes

Avoid These Dropshipping Mistakes

Table of Contents

  1. Introduction
  2. Mistake #1: Outsourcing without understanding the process
  3. Mistake #2: Not tracking profits and expenses
  4. Mistake #3: Neglecting average order value optimization
  5. Lack of mentorship and guidance
  6. The importance of mentorship in avoiding mistakes
  7. The opportunity to work with a mentor
  8. Conclusion


In this article, we will delve into the story of how I lost a million dollars with my dropshipping business. It was a journey filled with lessons and mistakes that ultimately led to significant financial setbacks. I will share the three key mistakes I made, and the consequences they had on my business. By understanding these mistakes, you can avoid them and set yourself up for success in the dropshipping industry.

Mistake #1: Outsourcing without understanding the process

One of the biggest mistakes I made early on in my dropshipping journey was outsourcing various aspects of my business without having a solid understanding of how they should be done. I believed that hiring an agency to handle my store, advertisements, and customer service would lead to success. However, I soon realized that this approach gave the outsourced individuals complete control over crucial aspects of my business. This lack of control became evident when the customer support agent I hired started hiring additional help, leading to high bills and diminishing profit margins.


  • Outsourcing can save time and allow you to focus on core business activities.
  • Hiring experts in specific areas can enhance the quality of work.


  • Lack of control over outsourced tasks can lead to financial losses.
  • Miscommunication and inefficiencies may arise when relying solely on external parties.

Mistake #2: Not tracking profits and expenses

Another significant mistake I made was neglecting profit tracking and disregarding the importance of understanding the financial aspects of my business. I didn't keep track of fees, refunds, customer support bills, or even the costs of my Facebook ads properly. This lack of financial awareness meant I couldn't accurately determine my profit margins or make informed decisions about when to scale or cut ad campaigns. As a result, I ended up losing a considerable amount of money for several weeks before Facebook blocked me, inadvertently saving me from further financial trouble.


  • Focusing solely on money-making activities can help prioritize business growth.
  • Avoiding excessive worry about minor details can reduce stress levels.


  • Not tracking profits and expenses can lead to financial losses and hinder strategic decision-making.
  • Inability to determine profit margins may hinder sustainable business growth.

Mistake #3: Neglecting average order value optimization

One of the costliest oversights I made in my dropshipping business was not prioritizing average order value optimization. I failed to implement upsells and other strategies that could have significantly increased my profit margins. My lack of knowledge and understanding in this area meant that I missed out on opportunities to maximize revenue from each customer. Upselling is a valuable technique that can double profit margins and should not be overlooked, even if profit margins appear satisfactory.


  • Improving average order value can dramatically increase profits.
  • Implementing upselling strategies can provide additional revenue streams.


  • Neglecting average order value optimization can result in missed profit opportunities.
  • Lack of upselling may limit long-term sustainability and growth potential.

Lack of mentorship and guidance

Throughout my dropshipping journey, one aspect I realized was the absence of a mentor or guide who could have helped me identify and rectify these mistakes at an early stage. While I did have a mentor initially, the mentoring relationship did not extend beyond a specific time frame. This lack of ongoing support and guidance contributed to further mistakes and setbacks as I falsely believed I could handle everything on my own.


  • Mentors provide valuable insights and guidance based on their experience.
  • Having a mentor can help you avoid costly mistakes and improve decision-making.


  • Lack of consistent mentorship may lead to ongoing mistakes and missed opportunities.
  • Not having a mentor may hinder personal and professional growth within the industry.

The importance of mentorship in avoiding mistakes

Reflecting on my experience, I have come to understand the critical role that mentorship plays in avoiding costly mistakes in the dropshipping business. Having someone to guide you through the entire process, from finding winning products to advertising and scaling, can make a significant difference in your success. A mentor can provide structure, help you make informed decisions, and introduce you to valuable connections within the industry.


  • A mentor provides industry-specific knowledge and expertise.
  • Mentors offer guidance tailored to your specific business needs.


  • Finding the right mentor may require time and effort.
  • Depending solely on mentorship without personal initiative may limit growth opportunities.

The opportunity to work with a mentor

If you are interested in receiving guidance and mentorship to navigate the dropshipping industry successfully, we offer a program tailored to your needs. By clicking the link below, you can schedule a call with our team to determine if our program is the right fit for you. Our comprehensive program covers everything from product selection to advertising strategies and average order value optimization. Additionally, we provide access to a network of reliable suppliers and customer support professionals to alleviate some of the operational burdens of your business.


Learning from my own mistakes and failures has been instrumental in shaping my understanding of the dropshipping industry. By avoiding the pitfalls of outsourcing without comprehension, neglecting profit tracking, and underestimating the importance of average order value optimization, you can increase the chances of your dropshipping business's success. Remember, mentorship can be a crucial resource in guiding you on the right path and helping you avoid significant financial losses. Don't hesitate to seek guidance and take advantage of the opportunities available to you in the dropshipping industry.