Dropshipping has become extremely popular among fresh entrepreneurs, mostly because it reduces the costs and responsibilities normally associated with running e-commerce business (or any business). However, according to dropshipping experts from https://verumecom.com, most of them fail – for many reasons. The majority simply enjoy the benefits without actually understanding what dropshipping is all about – they expect immediate results, but they don’t take any action. Luckily, you don’t have to join the circle of those who failed – there are some tips that may help you succeed.
- Pick a niche
It’s best when your niche is quite narrow and it’s something that you’re actually interested in. Narrower niche is better because it’s easier to advertise and the marketing strategy will probably be more efficient. When it comes to your interests, if you’re selling something you like, you will be more motivated and less likely to give up. It’s not easy to start a dropshipping business and it requires a lot of patience so it’s better to deal with things you’re actually fond of.
While considering a niche, you can use online tools to check if people are actually searching for items related to it. It’s also better to sell products that aren’t available (or are but not that easily) in your region.
One of the most important things is to pick a profitable niche. As an owner of dropshipping business, you will focus on marketing and gaining customers. Each client costs you the same amount of work so it’s better if they buy $120 than 20$ products. Don’t go for too many low-priced items because it’s simply not worth it.
- Check competition
There are many dropshipping businesses, other online stores, and even total giants like Amazon. Many people think that they should start selling something that is not available anywhere but they don’t think about how there may be a reason for that – it’s simply not useful. You should do something opposite – sell a product that can be found on other pages, and try to somehow differentiate yourself from them.
- Find suppliers
Make sure you do thorough research on producers and drop shippers, as a bad one can do a lot of damage to your brand and its reputation. Many of them are located overseas, that’s why the first step is to check communication – how fast they respond and if there aren’t too many misunderstandings. Ask all the questions that come to your mind, ask for references from their other clients, and learn their production capabilities. You need someone you can trust to rely on them – after all, they will be a big part of your company’s success or failure.
- Build a website/choose a platform
You need a place to sell, obviously, and you can approach it in a couple of ways:
- An online marketplace – it’s possible to sell on a ready-to-use website like eBay, Amazon or Etsy, and it’s probably the best way to start your dropshipping business – it’s easy to prepare your store and add items. Plus, you will be able to profit from established trust and traffic already generated by pages like eBay. The downside is that these websites may charge fees on each sale that you make, you’re also limited when it comes to branding, service and marketing, as you’re dependant on their policies.
- Your own store – if you feel like it, you can build your own online store with the help of a platform, e.g. BigCommerce or Shopify. You will be free to design it however you like, you will be in total control over all kinds of solutions – brand building, marketing, customer service, etc. This may be both an advantage or a disadvantage – it depends on how much time and money you are willing to sacrifice. Since it will be your own, there won’t be any fees per sale, but building your own website may be costly. You may hire a developer or learn it yourself, you will also need to invest in strategies to generate traffic.
- Come up with a plan to gain customers
It’s recommended to start with an ad campaign on Facebook – it’s relatively simple and it allows you to directly reach your targeted audience. It’s also possible to get an immediate result – not a lot, but you will be able to generate sales from the very beginning. In a longer perspective, you should familiarize yourself with email marketing and search engine optimization. Start with allowing people to subscribe to your newsletter, offer discounts and other special offers. That’s the way to gain loyal customers who will stay with you and recommend you to their friends and family. Then you can think about content, the right keywords, link building, etc. It’s possible to do SEO yourself but if you don’t want to do any harm, it’s better to work with a professional, at least at the beginning.
There are tools like Google Analytics or Facebook conversion pixel data that can help you track all conversions – you will know where your customer came from, how they reached you and why they chose you. Thanks to that, you will be able to tell which marketing movements work and which don’t. It’s really a trial-and-error process to find something that will benefit you, and you can never be sure for how long it will.
It’s an easy business to start – you don’t need any money and you can work from any place you want. There are many benefits to dropshipping and they can become even greater if you’re doing it right. Follow the rules, don’t be tempted by any shortcuts and you will certainly become a successful entrepreneur.