If you are new to the dropshipping world, then you might have waited too long. Luckily, it is never too late to join the fun.
The e-commerce space is flourishing, and there is no greater time than now to start making a living by selling online.
But although dropshipping is a great business model, success does not come easily. You still have to put in the time and effort to make your online business succeed.
If you are just learning the ropes of dropshipping, then there are still a lot of things that you need to know.
Here’s how dropshipping is explained: It can be one of the quickest and easiest ways that you can enter the e-commerce space.
It is one of the most popular e-commerce business models that you can utilize nowadays to run a store without keeping an inventory.
After a sale, the supplier or manufacturer will be the one who will be responsible for shipping products from the warehouse and right into your customers’ doorstep. You do not have to think about packing, storing, and shipping your products.
Why Should You Dropship?
Being a new entrepreneur, dropshipping is a great way to jumpstart your business because of the following reasons:
- Low capital investment: This business model works in a way that your primary responsibility is to market a third-party seller’s products to your customers, forward the orders to your supplier or manufacturer, and they will do the heavy lifting for you. Because you do not need to keep stocks of the items that you are offering for sale, you do not need to pay for storage or its maintenance.
- Low risk: Dropshipping also places you in a position where risk is minimal. If any of the products that you are offering for sale do not yield exceptional results, then there is no need to worry that your inventory will be put to waste. All you need to do is to search for a new product to sell and market it all over again.
- Extensive product range: Because you do not have to risk keeping a number of products in stock, you do not have to worry about offering a wide array of products for sale. You could also work with other third-party sellers, letting you maximize your selling potential.
Dropshipping Tips for Entrepreneurs:
Now, if you’re keen on penetrating the e-commerce world through dropshipping, here are the top ten tips that could easily set you up for success and boost your business potential:
1. Always Go Niche
The most successful dropshipping businesses out there are niche-specific. It always goes by the rule that the more specific an online business is, the greater the chances for success.
Remember that even the world’s largest marketplace, Amazon, first started with a very narrow niche of online books before it considered diversifying. As their brand grew, it now includes just about anything and everything.
You’ll gain a better chance of attracting new customers when you concentrate on one particular niche. And then, you can gradually make changes in your store as you grow, but it’s also vital that you stick to a niche that you love at the moment.
2. Choose the Right Supplier
A supplier is the main component of your dropshipping business. So, if there’s something suspicious with the supplier you’re working with, they’d usually skate through the details.
When you ask them questions, that person doesn’t provide you with the necessary information, nor do they give you any guarantees. More likely, that person is a fraud. Run as far away from them as possible.
As a brand, customers have to trust you at all times. To achieve that, the products that you’re selling them should be top-quality.
Since you don’t actively play a role in the production and handling of your products, you must see to it that the supplier that you’re working with is reliable. They will also act as your business partner, so make sure that when you choose, you choose carefully.
3. Create an Amazing Offer
Another dropshipping tip is to create an enticing offer.
Don’t be the kind of owner that fails to add sales and bundles to the mix. If none of your products are on sale, then your customers would lack the motivation to purchase your product. However, if you present them with the right product, and with the right deal, it’s highly likely that they will convert.
Bundle deals can work out well. Just remember to think about how you can sell more of the same product. For instance, if you’re selling disinfectants on your bundle, you can add disinfectant wipes to the mix.
If people want your product, chances are, they’ll buy more of it. The hardest part will be convincing customers to buy, but when they’re already willing, it’s time to upsell!
4. Perform Competition Research
A lot of budding dropshippers make the mistake of looking for a product that has very little or no competition at all. But that’s a sign that the particular product isn’t in demand.
There will be several reasons why a product doesn’t have a lot of competition. This includes expensive shipping costs, issues with manufacturing, and poor profit margins.
That said, search for products that have competition because it’s a sure sign that its high demand and your business will become more sustainable.
5. Make Your Website Presentable
Before you launch your online store, notice the websites that are similar to your niche. How does their homepage appear to be? Do their images have logos on them? What are the types of pages their sites have? What features does their website have?
After taking notes and looking at layouts of sites similar to your niche, you might want to consider making a few changes, like adding affiliate programs, shoppable galleries on Instagram, and countdown timers.
You might also need a couple of pages in your sites like FAQs, shipping information, refund policies, and the likes.
6. Order Product Samples
Another great tip is to order a sample of products that you might want to sell.
Not only will this provide you with first-hand experience of the product, but you can assess your suppliers as well. Doing so can help you evaluate things like packaging and delivery time.
This will prompt you to make necessary changes when it comes to improving the overall experience of your customers.
7. Avoid Underpricing
When creating an order, don’t make the mistake of underpricing your products in an attempt to offer the best deal.
It’s a business after all, and it will always be acceptable on your part to make a profit. A gross sale might be one thing, but your net income is another aspect.
So, if you underprice, it means that you won’t be making any profit from it.
The key here is to look for a point wherein both you and your customers will benefit from one another. An underpriced product will definitely stand out from the rest of the competition, but at the same time, it will also risk putting your business in jeopardy.
8. Master Marketing and SEO
Unless you’re highly successful in driving traffic to your online store, then all your efforts won’t amount to anything.
Users have to discover your online store before they could buy anything from you. This explains why you won’t be able to make a sale and succeed without marketing and SEO.
So, unless you have a huge start-up capital to work with, ignoring SEO and marketing isn’t an option. You should put in the effort to improve your SEO and marketing skills.
You have to automate your dropshipping business as much as you can.
While a couple of dropshipping apps will handle some of the automation for you, there is still a lot to cover, such as your PPC campaigns, social media, marketing efforts, blog content, and so on.
There are so many excellent automation tools out there that would help you smoothly run your online store with very little effort. By automating things, soon you’ll find yourself living your entrepreneur dreams.
10. Offer Excellent Service
Customers are the key to your business success.
Unless you find ways to make them happy, you’ll lose them to your competitors. But if you offer excellent customer service, your dropshipping business will stand out from the rest of the competition.
So you must make your customers feel valued, respected, and important. Not only this helps you improve sales, but it grows your lifetime customer base.
When it comes to the customer service of your dropshipping store, you need to understand that your customers’ wants and needs are important and that their happiness should be your utmost priority.
Over to You
There are certainly a lot of benefits when running a dropshipping business. Not to mention that it is one of the best ways to jumpstart your journey to becoming a successful entrepreneur.
Do not try to cut corners. Instead, follow the tips we have mentioned above to reap the rewards of having an online business.
Juliette Anderson is an Outreach Community Specialist for an e-commerce fulfillment company that specializes in partnering with online sellers who have an average parcel weight of 5+ pounds or greater. She works hand-in-hand with e-commerce stores to achieve optimal sales for four years already. Her specialty lies in social media marketing and paid promotions.