Many people have developed the idea of doing business online with drop shipping in mind but have not really started. Many reasons could have led to this. However, if the matter is lack of a clear understanding of the subject, then stay with me! You can start a business online after reviewing the drop shipping business opportunities I have to share with you.
Drop shipping does not require a business to keep products in stock, but instead, the store selling the product passes on the sales order to a third-party supplier and also ships the request to the customer.
Please bear in mind that drop shipping is not a get-rich-quick scheme much as it may not require a lot of capital to start up.
Prepare to work hard to get business up and running by ensuring that you tick off the following from your to-do list.
Select a Favourable Niche
When you are making decisions on which niche to choose, it is advisable to get one that you are genuinely interested in. This will make marketing the product way easy for you; otherwise, if you are not passionate about your niche, most likely, you will get discouraged along the way and abandon the business.
Check if you meet the conditions below when choosing your desired niche.
- Select higher-priced products since they will give you attractive profits, especially when you have done customer acquisition and good marketing.
- Find products that are not locally available and position you to be the only source for that product.
- Even though your supplier or manufacturer does the shipping, ensure that your products have low shipping costs. This makes customer retention easy since customers do not like getting products with high shipping costs.
As an alternative to drive sales, you can absorb the shipping costs and deliver products to your customers for free.
- Your products should be appealing to trigger impulse buying. This means that advertising around these products should be of high quality.
- By using Google Keyword Planner and Google Trends, ensure that you are actively searching for your product. If you make your own brand, you can be appealing to potential customers.
Carry Out Competition Research
Although finding a product to dropship that has low competition with high-profit margins is recommended, it is advisable to look for competitive products. When products have a high turnover, it is a sign that the business model is sustainable. This can make you money on platforms like Amazon, eBay, Walmart and Esty; or even your very own online store.
Avoid going for products with no competition because it is a sign that those products have no demand at all, or may have poor profit margins.
Remember that since you incur less in the storage of your inventory, your returns in each product will be low. This means you need a high turnover to make a good profit. Therefore, traffic to your website is significant and determines how much you will earn off your business.
Find a Supplier for Your Products
Invest time in conducting proper due diligence to find a dependable and competent supplier of your product(s). You will discover that most drop shipping suppliers are located overseas, or far from your location, therefore, communication is critical.
There should be a fast response when placing orders. You should build repo and have confidence in each other. Satisfy yourself by asking as many questions as you can and learn what their production capabilities are; just in case you have a high demand for products to meet.
One of the most substantial online resources to identify and communicate with is Alibaba.
Other entrepreneurs are in the same business you intend to do or actively doing; get in touch with them and harvest their experience.
Build an eCommerce Website
A simple eCommerce platform like Shopify can help you quickly launch a website that supports a drop shipping business model right away. Building websites has been made easy that it is needless to have a background in Information Technology to get up and running. It has plenty of applications to help increase sales.
If it is within your means, you can hire a web design and development company to create custom solutions. With time, as you grow financially, you can explore additional website customization options to improve your customers’ user experience.
Generate a Customer Acquisition Plan
After you are sure you have a great product and have set up a beautiful website, it is right to start campaigns to attract customers. I highly recommend that you start with Facebook Ad campaigns. Facebook as the ability to get you the target market audience which allows you to generate sales and revenue right away. This levels the competition grounds against the largest brands and retailers immediately.
As a long term strategy, Search Engine Optimization and email marketing should also be a priority. Harvest emails from the start and set up automated email sequences that offer discounts and special offers. This allows you to leverage your customer base and generate revenue with minimal advertising and marketing costs.
Analyze Your Data for Optimization
Facebook conversion pixel data and Google Analytics data will help you a great deal when you need to track your website data and metrics about your business. Knowing where your customers come from and how they got to your website is fundamental in refining your conversion strategy. You will be able to test new options and fine-tune running adverts and campaigns.
It is reasonable to approach drop shipping when you already have a regular source of traffic or else you will find it hard to breakeven in the initial stages. The fact that there is a low barrier for entry means that you should expect a lot of competition, with many companies selling your exact same products, with years of experience and resources.
As a drop shipper, you depend on your suppliers to address any issues with customer orders and to address their concerns promptly. Any mismanagement of the supplier-customer relationship will drive customers to your competitors.
Drop shipping can help your eCommerce company improve business substantially, but it takes hard work to support your business on its own.
Is there an alternate business idea to drop shipping? You may ask! Check out my number one recommendation. You can build a website for free, get the much-needed training to get your business set up and you are guaranteed 24/7 support.
If you have any questions or comments about this blog, please leave me a message, I will glad to get back to you.