Without a doubt, dropshipping is one of the best business models out there for new entrepreneurs. And even if you are not so new to e-commerce, dropshipping is one way to step up your game.
Not only because dropshipping stores are easy to start, but they can help you enjoy the following benefits:
- Start or run a low-risk online business
- Save on operation costs
- Automate and streamline your business processes
Why Should You Dropship?
Before we dive right in, let us first detail why you should dropship in the first place.
Dropshipping is a great business model that new entrepreneurs can adapt to.
Setting it up is low risk and low cost. Thus, you can quickly start it up, and the best thing about it is that it can be automated.
- Low risk: You are only paying for products that are being sold to your customers. You do not need to stock up an inventory for you to get wholesale prices. And dropshipping prices are already low, to begin with.
- Low cost: Because you can get your products at a low price, you can price them on market value, allowing you to run a profitable business.
- Easy to start: Yes, you can immediately start your business on the same day you signed up. Products can be directly imported. The best thing about this is that you can promote these products right away.
- Automated: Using a reliable POS system and a 3PL partner, you can import your products in just a couple of clicks.
Now that you know the benefits of dropshipping, what are the essential things you need to know before launching your e-commerce store?
Dropshipping Tips for Entrepreneurs
If you are looking for a no-nonsense dropshipping guide, here are ten tips that every new e-commerce entrepreneurs should know:
1. Be specific with your niche
One of the most common mistakes that many drop shippers make is to pick the wrong niche in dropshipping.
Often, some of them will pick a niche based on what they think will sell.
But the problem with that is that not everything will be sold like a hotcake. Moreso, if that particular product has already flooded the market.
Ideally, it would help if you went with a niche that you are passionate about or interested in.
These are some of the most important things that you need to consider, as this can either set you up for success or failure if you are not too careful.
Being passionate about a niche also allows you to bring in more sales opportunities and repeat customers in the future.
2. Find the right supplier
Another important thing that you need to do is partnering with the right supplier.
Think of it this way: It will be the supplier who ships the items customers ordered from your store directly to your customers.
Now, try to imagine what kind of reputation you will get if the supplier you work with keeps sending out low-quality items to your customers. If they ordered a different product, and receive the wrong item, then you have a problem right there.
That’s why you must find the right suppliers that you want to work with, first and foremost.
Here are some ways how you can find and keep the right suppliers:
- Supplier audit: Study your supplier’s licenses, check for the range of items they offer, read customer reviews, and order a sample.
- Work with several suppliers: Create a shortlist of the best suppliers in the market. Then, compare the sales services, product prices, and guarantees. As a rule of thumb, it would be best to have multiple suppliers (three at most) for the same products.
- Get rid of bad suppliers: As you work, you find the best ones to partner with, get rid of bad suppliers as you go.
3. Offer exceptional customer service
Making your customers feel valued, respected, and important helps boost your sales and expand your customer base. This explains why customer service is integral to any business.
Keep in mind that you are responsible for your customer’s satisfaction and happiness.
4. Perform competition research
As you venture with your new enterprise, you should keep an eye with the latest and emerging competition. This helps you come up with fresh ideas in terms of how they advertise their products and what their social media messaging sounds like.
The bottom line here is that you can learn a lot from your competition. Keeping an eye at your competition allows you to come up with new product ideas. It also helps you improve your product positioning, branding, and pricing as well.
It also gives you insight into your target audience and what kind of messages they respond to.
Doing so allows you to become a better seller and marketer in the long run.
5. Make a presentable website
While it is true that dropshipping is a low-risk venture and allows you to cut costs, it does not mean that you should be doing the same with your website.
In a highly competitive e-commerce space, you must have a presentable website that will draw people in and engage them in what you are selling.
Ensure that you put in the effort to create a great homepage. It will also help if you have a search engine-friendly online store. You can do this by optimizing your product titles and descriptions and product images.
You also need to put out high-quality photos and have clear and precise shipping and returns policy.
As we have mentioned earlier, take a look and study the most competitive online stores out there that have a similar niche as you for inspiration.
You can also seek help from other drop shippers. You would be surprised at how Facebook groups dedicated to dropshipping are there.
6. Order product samples
If you plan on dropshipping only a small number of items, then a great tip is to order product samples first from your suppliers.
Doing so offers excellent potential for your dropshipping store. This allows you to take better photos of the items you are selling. You also have the chance to experience the product yourself, enabling you to write more accurate product descriptions.
You can also use these sample products to develop ads, product reviews, and other marketing materials.
By putting yourself in your customers’ shoes, you will have a more authentic experience of what it is like to shop from your store.
7. Avoid underpricing
If other brands are underpricing their products, it doesn’t mean that you should underprice yours. As long as you price these items on the current market value, strive to have a profitable price point.
In the same way, you should also increase your average order value to make a higher profit from every order. Come up with strategies that allow you to make more money and higher profits overall.
8. Master digital marketing
In dropshipping, you need to know how you can master your advertising, grow your traffic, and convert your store visitors.
Both search engine optimization and ads allow you to drive in more traffic to your store. The more traffic you gain from your store, the more it will be converted into sales.
Just note that ads are more instantly gratifying, allowing you to drive in sales for a short amount of time. Meanwhile, SEO helps drive in long-term sales by letting you rank higher in search engine results pages.
Come up with blog content, and optimize product pages that allow you to build an audience in search while keeping your ad spend low.
Over to You
The most successful drop shippers out there are the ones that are brave enough to take risks.
Thus, look for innovative ways to market your products online. Experiment to know what works and what does not.
You would be surprised at how satisfying the process is. Plus, you get to earn from your new online business.