For all those planning to start a dropshipping business, it is your first step to attain entrepreneurship. You are your boss, and you can set your prices and market them the way you deem fit. If you are sincere, starting a dropshipping business can help you build a brand of your own.
Dropshipping has been quite popular with the gen-Z for the last few years, primarily due to the availability of cheap internet and digitization. It is similar to an eCommerce model but has some fundamental differences.
What is Dropshipping Business?
Dropshipping is a business model where you do not hold any inventory with yourself and instead act as a link between the seller and the buyer.
As soon as you make a sale, you contact your supplier and ask him to ship the products to the customer.
You do not have to care about packing, logistics, or other aspects involved in sending the product to the end-user.
What is the difference between eCommerce and Dropshipping?
Dropshipping is a part of a vast eCommerce model. In the latter, the seller has an inventory of products and is responsible for ensuring that they reach the end customer safely.
He is the one managing the packaging, shipping, and the entire logistics process.
Dropshipping is all about accepting the order from your client and placing an equivalent requisition to your supplier.
How can I make money by Dropshipping?
Starting a dropshipping business can be a highly profitable business, provided you choose the right niche and market your offerings in the right way.
You can set up your store and earn a commission of up to 20 percent for every product sold. All it needs is dedication and a lot of time in marketing your gig.
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How do I start a dropshipping business?
Once you buckle up and ready to make a place for yourself in the eCommerce scenario, follow the given steps to start a dropshipping business:
Find the right niche
Before you start your marketing, it is requisite to choose the right niche for yourself. It must be the one you are genuinely interested in and have some idea about the products that come with it.
Limit your choice to a specific niche to laser focus on your endeavors and target the right set of customers.
Here is what you must consider for selecting the right niche for yourself:
- Profitability – Whenever we are out to set up a business, the first thing to consider is profitability. Since it is commission-based work, we suggest you go for a higher-priced product niche which will help you to earn more for every sale.
- Acceptable shipping costs – In dropshipping, you are not the one handling logistics or its charges. But if the shipping cost of your products is too high, it will deter customers from trying them. You must choose products inexpensive to ship. You can also provide a free shipping option to high-value orders and absorb the transportation charges yourself to woo more customers.
- Ensure that the products you choose have sufficient demand – Look for products that people are actively seeking on the internet. It will give you a higher chance of earning better profits.
- Look for unique offerings – Most people won’t come to buy from you if the products listed on your market are readily available near them. It would be best if you instead looked to sell those that are unique to a location and difficult to find.
Know your competition
Whenever you choose to drop ship a particular product or a group of products, you must remember that you are directly competing with eCommerce honchos like Amazon or Alibaba.
Most amateur drop shippers look for products with no competition, which means that few people are looking for it.
If you do not have enough prospects, you will have little chance of earning a decent profit.
A beginner drop shipper must build his business model around products that have a sustainable demand.
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Find a reliable supplier
Remember that you don’t own any inventory, and your market is virtual with no physical presence. You must choose a reliable supplier to ensure that the products reach the customers safely and securely.
There are chances that you will stumble upon your perfect dropshipping partner located overseas.
Look for their history and communication abilities. Response time is a crucial factor in dropshipping, and if you are unsure of their antics, it is better to move on.
Look for the supplier who believes in your idea and is willing to scale with you.
Build a virtual market
There are several portals that let you start a dropshipping business for free or with minimal charges.
These sites allow you to create your online store and place your products. You need not be an expert in tech to set up your virtual market, and it will take you some hours to do it all.
If you have a considerable budget, you can hire people to design the market for you.
They can deploy additional resources to ensure that your site stands out from the crowd and attract customers.
But it is not feasible for a beginner. If you are starting, you are better off in selecting a given template and upgrade once you have established your business.
Look for creative marketing techniques
When in the world of dropshipping, you cannot copy what your friend did when he was a beginner.
What worked for him may not work for you. A drop shipper must know where he is more likely to find his audience and accordingly build an action plan to woo them.
Set up an email sequence to rope in more customers over time and leverage your existing customer base to generate additional sales by smart marketing.
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Optimize your strategies
The Internet is a continually evolving world. It means that a dropshipping business must be on its toes to be able to thrive.
Look into all the key metrics regularly to track every single customer and the reason behind the sale.
You must be proactive and act timely to curb the chances of the competition, taking away your potential customers.
Dropshipping is not one of those set-and-forget options. Here you would have to develop and optimize to withstand the competition continually.
How much money do I need to start a dropshipping business?
It won’t cost you more than $1000 to start a dropshipping business, and you can upgrade your services as you make more sales.
The initial costs involved buying a plan for setting up your virtual market and hiring experts to help you do it.
The dropshipping business model is a conservative one.
You need not hold on to inventories, nor do you need to spend on shipping your products in most cases.
Is Dropshipping an Outdated Business Model?
The eCommerce scenario has been on a constant rise over the last few years.
The pandemic has further ensured that more and more people are looking to buy products online.
2019 saw the US eCommerce sales jump 14.9 percent to $523.54 billion, which should give you an idea about the potential of dropshipping.
How to Find Dropshipping Products To Sell
Getting high-quality trending products for your online store is a daunting task, especially if you are new to eCommerce. It is crucial for any e-commerce platform to curate and offers high-quality products to its customers at affordable products.
Trends in the eCommerce industry change faster than you can blink. As a result, if you fail to keep up, you are more likely to be trampled upon by your competitors.
One of the most efficient ways to enter the e-commerce space is through dropshipping products. Once you can add competent products to your dropshipping store, there is no limit to the amount of profit you can earn.
Yet, the world of dropshipping products can be pretty harsh and competitive. It is the kind of place where you will drown in no time if you do not swim.
So, it is essential to know the right way to find and pick dropshipping products to sell on your eCommerce store.
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How to Find Products For Dropship
As an eCommerce entrepreneur, you will have a lot of freedom while managing a dropshipping business.
However, when you are sourcing the top dropshipping products for your online store, there are a few things that you must consider.
Before you dive into it head-first, there are a few things that you should think about.
For example, you should stray from the urge to pick products according to your passion or tastes. This approach is not necessarily the wisest way to go about setting up a business.
Instead, you should define your ideal client or your target audience. With this information in hand, you can orchestrate reliable market research that will guide you while you pick dropship products to sell on your platform.
Once you develop an eye for products that are perfect for dropshipping, you will hold the reigns of the business effortlessly.
Read on to know how to find products to dropship that make good sales for your business:
Find Products That Are Trending With Your Target Clientele
Trending products are easy and hard to sell. Easy, because they are in huge demand and people are encouraged to buy it. Hard, because everybody wants it, so everybody is selling it.
Thus, there is significant competition to sell trending products. That makes it vital for you to somehow make the trending product unique to your store.
Try and compete with the rest of the market in terms of price, quality, selection, variety, etc. Dropshipping, in this case, gives you a smooth ground to experiment and see what works the best for your customers.
The best dropshipping products are those that trend and are in good demand. If you can present trending products to your customers before they are commercially mainstreamed, you may even establish your business as a leader in that genre.
If you want to study the ongoing trends or predict future ones, you can use a dropshipping product research tool like Google Trends or Kickstarter.com.
Study the prices, reviews, and value propositions of trending products to understand your target market.
Find And Choose A Niche Dropshipping Product
As long as you can have access to a niche market, a unique will be the best kind of dropshipping product to sell.
Targeting a dropshipping niche would help your eCommerce business grow and generate significant profits. If you run a dropshipping store, you will likely have lesser competition since you will target a small customer base.
This will lessen your marketing expenses in the future. There is a common myth that working your way into a dropshipping niche would mean that you will not expand your store into other areas later.
Instead, once you have cemented your leadership in the niche, you can easily expand your offerings to other products that your current customer base is likely to buy or recommend to others.
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Find Products That Have a Small Yet Dedicated Customer Base
When looking for the top dropshipping products, you should not research solely on the product. You need to research and define your target audience too. It is natural to target products that have a more extensive clientele that brings bigger spending-power.
However, you should not ignore smaller groups. This niche will have a small, highly educated, and committed client base. For example, there is a set of people who are camping, trekking, or, golfing. These would be niches with a smaller but dedicated clientele.
Another good example would be people interested in stones or enamel pins. These are not the most popular products in the mainstream market. However, this is the kind of niche that brings consistent profit over the years.
Join Online Communities
There are many online forums and communities that you can join to find the best dropshipping products. These are great places to perform research, read and predict trends, and get in touch with your ideal client.
You can find these groups online or on social media platforms, like Facebook. These groups can help you understand what your target audience wants since you can enter communities specific to a country or a region.
You can read through the common grievances that appear in these groups and develop a niche product that solves them.
Once you have found the dropship products to sell, you have completed most of the difficult work in curating your inventory. Next, you need to determine your ideal price range that invites your customers, competes with the rates in the market, and brings you profit.
Then you can go on to find the right supplier for your dropshipping products. Add the dropshipping products to your store and get on the eCommerce ride.
180 Dropshipping Websites to Help You Start a Dropshipping Business in 2020
Dropshipping is still a profitable business in 2020, and we hope that our article gave you a ray of hope to start your virtual market soon.
The profits won’t come easy, and you will have to work hard for that. If you have a proper plan for marketing your products and execute it efficiently, there is no way that anyone can stop you from making big bucks from drop shipping.