Let me start by saying nothing can exactly be a failure. At most, you learn lessons, you gain experience, you acquire new skills and you can use this new knowledge to repurpose your dropshipping store and if you never give up, success is inevitable.
However, in this article, we want to analyze when and exactly when is it time to repurpose your dropshipping store and accept that your strategy and product offer just isn’t working.
Over the years, I have started a number of dropshipping stores, some of which were successful and some were unsuccessful. Unfortunately, my most recent dropshipping store had been unsuccessful, so in this article I’m going to show you the five common signs that made me decide that a store wasn’t working and it was time to repurpose the store.
- constantly unprofitable;
The store was constantly unprofitable no matter how much I tried. Taking the expenses from gain, there wasn’t profit made and increasing the price just meant no more purchases.
I tried to find another supplier with a cheaper price but couldn’t. This was a frustrating situation and one of the signs that made me conclude the store isn’t working and it was time to either sell a new product, offer a product bundle, upsell or just repurpose the store entirely.
Since I wasn’t making profit, I didn’t see the point or motivation to continue going in the same direction. I knew something definitely had to change
2. No repeat purchases and customer loyalty
Repeat purchases are a huge sign for me especially when they are products that a customer will ordinarily need to make repeat purchases.
If a customer comes back to my store to make purchases, refers my store to another customer, revisits my store. I get the hint that I can build a brand around that product and store. It shows me that the store is succeeding.
On the other hand, if I have no repeat purchases, this does not immediately conclude that the store is a failure. I know that the store isn’t getting the sort of traction I need and it’s time to be objective and analyze why people aren’t coming back to purchase from me.
I can send out a discount offer email or a survey email to get feedback from my customers and use their response in improving or repurposing my store
3. Very bad conversion rate;
This is definitely one of the bad signs. If my conversion rate is low and I still stay profitable, that’s okay! There would be no need to cancel the store.
Where a low conversion rate is bad is not being profitable. Your conversion rate is low and you’re just burning all that effort, time and money on marketing without making gains.
Also, a low conversion rate is very bad when you’re able to make sales today and can’t guarantee that you’d make a single sales in the next 6 months!
A low conversion rate is one of the signs that your dropshipping store isn’t working and maybe it’s time to restructure and repurpose your store.
4. Exhausted enough time and effort to test and optimize the store with no result.
Every business has its break-even point, when it’s reasonably estimated that things should pick up and you should have made as much as you’ve put in!
However, when you don’t see any result when you’ve exhausted a lot of time, money and effort, what do you do? As hard as it sounds, it maybe the sign that your store isn’t working and it’s time to make a shift in direction.
You can consult a third party for a review or a revamp of your site. You can use the live chat button on our site to request a review of your site.
You can try to optimize your site design, test out other products, target a different audience or repurpose your site and start an entirely different store in a different niche!
5. Too many returns and bad review
We all love good reviews but what about bad reviews and returns? They are an indicator that your store may not be working or your service isn’t satisfying to your customers.
With reviews and return at least you can understand or atleast ask your customers to help you understand what the issue is and do something to fix it!
In this article we analyzed the 5 most common signs which show you that your store isn’t working while experiencing only one of these signs does not mean your entire store has failed but experiencing all signs is definitely a huge indicator that you’re store isn’t working and it’s time to restructure and repurpose your store.
Have you ever reached that rock bottom where you’re frustrated with your dropshipping store? Tell us about it in the comments..