- Published on
Top 5 Supply Chain Mistakes | What prevents successful dropshipping stores from reaching 7 Figures
Introduction
Hello everyone, this is Dalia from EcomOps. Today, I'm discussing the top five supply chain mistakes that I often see experienced dropshippers or eCommerce store owners make when fulfilling orders from China. These mistakes often happen when they are at six figures and aiming to scale up to seven figures. It's unfortunate because many of these people have excellent marketing strategies, winning products, and good processing systems, only to have their business held back or even implode due to a flawed supply chain.
This discussion is more suited for experienced individuals, but if you're new, you should still watch because someday, hopefully, you'll be at this level, right?
Just a quick announcement: I'm going to slow down the YouTube video launches for a couple of months. I want to focus on creating more valuable free content within our Facebook group, which I feel I've been neglecting. If you haven't joined our Facebook group yet, check below to join, and look forward to more content there.
Mistake #1: Not Treating It as a Real Supply Chain
Many people start by dropshipping from platforms like AliExpress or CJ, which is great for testing products and getting started. However, when scaling to six or seven figures, you need to see your supply chain as a real, structured entity. The traditional dropshipping model doesn’t scale well because you have no control over inventory, product quality, and differentiation.
If you’re at six figures and aiming for seven, you likely already treat your store and marketing as real business aspects, possibly even hiring people. So why not see fulfillment and sourcing the same way? Change your mindset to view your supply chain as an important part of your business.
Mistake #2: Evaluating Suppliers Based on the Wrong Factors
When searching for a supplier in Facebook groups, you might hear about fast shipping, free warehousing, automated fulfillment, English support, etc. While these are essential, they’re just the bare minimum. To scale to seven figures, you need:
- Suppliers who work with, communicate with, and manage factories directly.
- Proactive inventory planning for scaling.
- Transparency about issues and a willingness to resolve them.
- A structured business with a team, warehouse, and the capacity to scale with you.
Mistake #3: Not Seeing Your Supplier as a Partner
In traditional retail, there’s an entire supply chain department. You don’t need this, but you should see your supplier as a partner or part of your team. Communicate proactively about your scaling plans, listen to them about issues, give feedback, and pay them on time. Treating suppliers well ensures they remain transparent and willing to resolve issues.
Mistake #4: Assuming Small Product Quality Issues Cannot Be Fixed
Some assume minor quality issues can’t be fixed, especially if they’re used to working with smaller agents or AliExpress sellers. A good supplier can manage the factory to resolve these issues, often for free or at a low cost. This can reduce returns and refunds, ultimately saving you money.
Mistake #5: Not Doubling Down on Big Winners with Branding or Customization
One of the biggest mistakes is not enhancing your successful generic products with branding or customizations. Update packaging, improve product features, and differentiate your brand. This can enhance customer satisfaction, allowing you to charge more and build a sustainable business.
Final Thoughts
If you’re newer, start with platforms like AliExpress or CJ Dropshipping to validate your product and process. As you scale, consider suppliers with minimum order quantities and experience in handling larger volumes. At EcomOps, we help our clients scale from six to seven figures and beyond by optimizing their supply chains.
Thank you for watching! Remember to join our Facebook group for more free content. If you're ready to scale, feel free to reach out to us.
Keywords
- Supply Chain
- Dropshipping
- E-commerce Store Owners
- AliExpress
- CJ Dropshipping
- Scaling Business
- Supplier Evaluation
- Inventory Control
- Product Quality
- Branding Customization
FAQ
What is the main cause of supply chain issues for dropshipping businesses?
The primary cause is not treating the supply chain as a real, structured entity, leading to problems with inventory control and product quality.
Why should I treat my supplier as a partner?
Treating your supplier as a partner fosters better communication, transparency, and issue resolution, which is crucial as you scale your business.
Can small product quality issues be fixed?
Yes, with a good supplier who manages factories well, small quality issues can often be resolved, saving you from returns and refunds.
What should I look for in a supplier to scale up to seven figures?
Look for a supplier who works directly with factories, proactively plans inventory, is transparent about issues, and has a structured team and business.
Why is branding or product customization important?
Branding and product customization help differentiate your products, allowing you to charge more and build a more sustainable and recognizable business.