Dropshipping is no longer a new term in the eCommerce landscape. It’s now a buzzword as everyone is archiving their dream of becoming a business owner more easily than ever with dropshipping.
Doing some simple research about dropshipping, and you can easily see these statistics: $4.08 trillion retail eCommerce sales in 2020, and approximately 27% of online retailers have shifted to dropshipping.
It shows how tempting dropshipping is and why it’s worth your investment. However, like any business model, if you’re not walking on the right track from the start, your business will be in danger anytime. Having a passion and viable business idea is good, but not enough, you need some tips to thrive on this dropshipping journey.
Let’s find out by following this article to the end.
What Is Dropshipping?
Imagine selling something even without holding it. It’s precisely what a dropshipping business owner is doing every day.
Simply put, dropshipping is a retail fulfillment method in which sellers are free from keeping products in stock or any inventory activities. Instead, third-party suppliers or manufacturers will be in charge of product storing, packaging, and shipping to final customers. Sellers only need to handle the orders online and pass them to the suppliers. They’ll finish all the remaining tasks.
You just need to work from a computer, and everything will be done smoothly.
The primary stream of a dropshipping business is:
- Step 1: Your customer place an order from your online store
- Step 2: You send the order to the supplier
- Step 3: Your supplier process the order
- Step 4: Your supplier ship the order directly to your customer.
Why You Should Do Dropshipping
Dropshipping is a great start for an aspiring newbie in the eCommerce world as it doesn’t require a lot of financial resources. Dropshipping is an accessible and low-risk business model with unlimited capabilities. If you have different marvelous business ideas, you can test as many as you want until you find which generates profits most.
Everyone can become a business owner with dropshipping. Don’t believe me?
Here are the reasons why:
- Low required capital: You can launch your dropshipping store without investing a great deal of money in filling up inventory beforehand. You only have to pay for products once your customers make payments for the items they order. Therefore, with a little budget, you can still start your business.
- Hassle-free start: Once your eCommerce dropshipping website is launched, you can add your products right away, make a list of available products for sale and start marketing your business. As you don’t have to worry about purchasing inventory and order fulfillment, you’ll have more time to focus on how to promote your products, captivate your audiences, and grow revenue.
- Wide range of products: With dropshipping, you can choose what to sell from several trending products as long as you find suppliers that have enough capabilities.
6 Must-Know Tips for a Dropshipping Business
Find the right niche
Did you know that many drop shipping businesses fail right from the start because of the most popular reason – choosing the wrong niche?
As you don’t hold any inventory and the eCommerce market is huge, it might be challenging to choose a product for your dropshipping business. And it’s easier for you to end up selling a wide range of items. It would be best if you make a list of products that you want to sell, then narrow down the list based on your target audience, product viability, etc.
In case you have trouble identifying a good niche in the market, you can use dropshipping product research tools to speed up this step. The important thing is that you’re interested in what you’re selling. If you have no passion for selling a specific product, but it’s trending or whatever, you can choose another one. It’s completely up to you. However, bear in mind that your niche should be laser-focused and target to a specific group of audience.
Choose the Right Supplier
Researching potential suppliers before making any long-term decisions is what a smart dropshipping entrepreneur will do. It’s an important step as the wrong supplier will ruin your business and vice versa.
As the suppliers will take care of products and the entire fulfillment process, it’s critical to partner with ones who are capable of providing high-quality products and excellent handling of order problems. Also, you need to pay attention to the communication between suppliers and you. It’s essential to communicate well with suppliers to make sure that they meet your requirements and have the ability to scale with you. A lot of work to do in this step.
And the good news is, there are several free dropshippers out there, which enables you to dip your toes in dropshipping business with ease. An outstanding option is the Oberlo dropshipping app that allows you to find what to sell from a sea of online products and automate almost all order fulfillment for you.
Marketing Is Gold
Dropshipping cuts down a lot of workload for you; that’s why you can focus more on marketing and branding to strengthen your business. When you first jump into the dropshipping market and are still craving for brand awareness, carefully planned marketing strategies are essential than you think.
You can learn to market your business in various ways, such as content marketing, social media marketing, advertising, influencer marketing, and more. Also, there are several tools that help you to leverage marketing automation.
One of the simplest ways to streamline your marketing efforts is to penetrate social media platforms. Depending on the type of your business and product, build your business profile on the right platforms. Actively and consistently update your news, tell your followers what you’re doing, and conversationally interact with them. This technique is useful to improve customer retention and build a strong relationship with them.
Optimize Your Website
If you want your business to truly hit its stride, it’s essential to optimize your dropshipping website. An optimized site, indeed, can receive a massive influx of traffic.
One of the most important things is making your website fast and user-friendly. In reality, many customers are suffering from slow websites that take a lot of time to load. If your site is also like that, it’s more likely that customers will leave you for your competitors and never come back. Another critical point is the user-friendliness of your website. Make it simple for users to navigate through your site and easy to find what they need.
Besides, it’s vital to optimize your website for SEO, make sure every content on your site is error-free, comprehensive, relevant, and valuable. Last but not least, as more and more people are shopping through mobile devices, your website will definitely get more traffic and conversions if it’s mobile-friendly.
Take a look at some competitive online dropshipping stores for inspiration.
Automate More of Your Business
While you have a ton of stuff to do with your new dropshipping business, it would help if you step on technology to automate your dropshipping business. Saving a great deal of time from doing mundane and tedious tasks, you can concentrate on tweaking your business with marketing and customer service. Outsourcing tasks to professional, trustworthy contractors or freelancers is also a good idea. Besides, you can consider some platforms and apps great for dropshipping, such as Shopify or Oberlo. They allow you to automate several aspects of your business.
Deal with Canceled Orders
When it comes to dropshipping, customers will inevitably cancel their orders for various reasons. Good handling of canceled orders can raise your customer satisfaction significantly. It creates opportunities for you to deliver better customer service and build trust with your customers. However, it also causes a lot of risks to you in terms of receiving, storing, and reselling abandoned items.
What matters more is how to negotiate with your suppliers about the cancellation. It’s essential to understand your suppliers’ refund and return policies beforehand to avoid unexpected issues and secure your benefits. When orders get canceled, contact your supplier as soon as possible to get the solutions.
By now, you get to know the best dropshipping tips; it’s time to take action as practice makes perfect. More importantly, there are no such things as one-site-fit-all, think out-of-the-box, and try new things to find the most effective ways to become a successful dropshipper. If you need advice or want to suggest some interesting ideas about dropshipping, we would like to hear from you.