Mistakes to avoid when acquiring a dropshipping e-commerce
Introduction
Dropshipping promises a business model without stock, without logistics and with low initial investment. On paper, it's appealing. In the business acquisition market, it's another story.
Many dropshipping e-commerce businesses are put up for sale with impressive turnover figures and promises of passive income. But behind these listings often lie far less attractive realities: microscopic margins, total dependence on Chinese suppliers, unprofitable paid traffic, or worse, figures that are simply manipulated.
Acquiring a dropshipping business is not like acquiring a traditional e-commerce. The risks of the model are structural. The dependence on suppliers is total. And unlike a business with tangible assets, you're often buying hot air.
This article details the six most common mistakes that acquirers make when facing this type of opportunity. If you're considering buying a dropshipping site, read carefully. These red flags can save you from a costly mistake.
📌 Summary (TL;DR)
Acquiring a dropshipping e-commerce carries major traps: inflated turnover, total dependence on suppliers, artificial traffic, virtually non-existent real margins, non-transferable models and non-existent customer bases. Before buying, verify actual data, analyse cost structure and assess the viability of the model without the seller.
📚 Table of contents
1. Believing that the displayed turnover is real
Many dropshipping shops artificially inflate their turnover with fictitious orders, one-off sales via influencers or non-reproducible viral campaigns. Shopify or WooCommerce dashboards can lie.
Demand actual bank statements over 12-24 months. Check return and refund rates, often hidden in the statistics presented. A turnover of 50,000 CHF/month can hide 15,000 CHF of unaccounted returns.
To explore financial warning signs further, consult our guide Red flags: 15 warning signs before buying.
2. Neglecting total dependence on suppliers
In dropshipping, you control neither the stock, nor the quality, nor the delivery times. A supplier can disappear, increase their prices by 30% or change their terms overnight.
Check imperatively: the number of suppliers (real diversification), the seniority of commercial relationships, the existence of written contracts (rare in dropshipping), and actual delivery times measured over the last 3 months.
Be wary of shops that depend on a single AliExpress supplier without a credible alternative. This is a major risk for business continuity.
3. Ignoring the true source of traffic
Many dropshipping e-commerce shops claim to have organic traffic when they depend 100% on paid advertising. If Facebook Ads or Google Ads campaigns stop, turnover collapses immediately.
Request access to Google Analytics to analyse actual traffic sources. Calculate customer acquisition cost (CAC) and identify dependence on paid influencers.
Organic traffic takes years to build and is rarely present in small dropshipping shops. A site without SEO or its own audience has no fundamental value.
4. Underestimating hidden costs and real margins
Acquisition listings often omit actual costs: payment fees (Stripe, PayPal: 2-3%), platform and app subscriptions (Shopify, marketing tools), advertising costs, returns/refunds, outsourced customer service or time spent.
A displayed gross margin of 40% can turn into a net margin of 5-10% once all costs are integrated. Demand a detailed profit and loss statement during due diligence.
Without complete financial transparency, you're buying blind. Small costs accumulate quickly and kill profitability.
5. Buying a non-transferable model
Some dropshipping shops rely entirely on the seller's personal network: Facebook/Google advertising accounts linked to their identity (often banned upon transfer), non-contractual supplier relationships, or personal influencer account.
Check transferability BEFORE signing: can advertising accounts be migrated? Do domains have a clean SEO history? Are supplier contracts transferable in writing?
To manage this type of risk, read our article How to take over a business where everything depends on the outgoing owner?
6. Paying for a non-existent customer base
Many dropshipping shops have no customer loyalty. Customers buy once via an advert and never return. A list of 10,000 emails without real engagement is worthless.
Check the rate of recurring customers, the actual email open rate (not just the number of subscribers), and authentic customer reviews on Google or Trustpilot, not just on the site.
If you're looking for e-commerce models with established customer bases, explore the companies for sale on Leez.
Dropshipping may seem like an easy acquisition opportunity, but the risks are real. Inflated turnover, total dependence on suppliers, unprofitable paid traffic, fictitious margins, non-transferable models and non-existent customer bases: each mistake can turn an investment into a total loss.
Before committing, verify raw data, analyse actual costs, test suppliers and assess the transferability of the model. A viable e-commerce relies on solid foundations, not on promises of passive income.
If you're considering acquiring an e-commerce, favour models with stock, own brand or established supplier relationships. Browse companies for sale on Leez to discover verified and transparent opportunities. And if you need support to analyse an opportunity, our network of experts can help you make an informed decision.
