Undoubtedly, dropshipping is one of the best business models when it comes to starting an online business without inventory and selling products online without getting into the complications of inventory, packaging, and shipping. Moreover, dropship stores are easy and quick to start, highly automated, and characterized by a lower risk.
But what do you need to know before you get started with your first dropshipping store? Here are some wonderful tips that every new entrepreneur should know before getting into the rewarding world of drop shipping products on the internet.
Tip 1: Always Go Niche
There can surely be no better example than Amazon. This company started in the niche of online books and started added more products and categories to their brand over a period of time and guess what — you can now fin almost anything under the Sun on Amazon. The point is — Amazon was initially selling in a narrow niche but slowly and steadily explored and expanded its horizons.
Narrowing your focus is critical to the success of your dropshipping web store. Getting a web store that is too general will make it difficult for you to evoke and retain attention of both the customers and the search engines. It will obviously take a lot of time, efforts, energy, money, and other resources — and these are things the average new entrepreneur lacks most of the times!
To select the perfect niche, you would have to look closely and extensively on where your passions are, think about what the target audience is looking for, and study the industry trends. Thereafter, you should spend some quality time to evaluate and analyze the demand, the competition, the market, and the buying habits and preferences of your target audience.
Tip 2: Choose the Right Suppliers
There is no denying the fact that the biggest factor that would decide the fortune of your dropshipping web store is the kind and quality of products that would be out on the display for sale. Therefore, it becomes extremely important for you to ensure that they are handpicked or chosen with a great sense of care and diligence. For this, you can perform a supplier audit to find out the range of products sold by different suppliers, their reviews, their shipping times, the feedback and complaints (if any) against the suppliers to know more about their quality and credibility. Additionally, you can compare the prices of products offered by different suppliers, guarantees, unique selling propositions of different products if not absolutely similar, etc.
Tip 3: Opt only for a professional and custom web store
There is no denying the fact that dropshipping can help you cut corners and cost but it does not in any way suggests that you can expect to make any worthwhile impression in the eyes of today’s tech-savvy and demanding customers amidst cutthroat competition. Always remember, there is nothing better in your armor to sell products online than a custom, user-friendly, and professionally developed eCommerce dropshipping store. The web store owned by you must emphasize on creating and maintaining amazing user experiences order after order and day after day. No compromises whatsoever! Customer experiences go a long way, really long way to build trust and credibility and the last thing you would ever want is to see a customer coming to your web store and leaving in a hurry without even noticing the huge and amazing range of products put out by you. Right? Always make sure that your web store is optimized for conversions! If you have any doubts or require professional expertise, just buy a professionally developed, custom, and user-friendly turnkey website for sale from BE BIGGY — the world’s most preferred and obvious choice when it comes to buying ready made websites for sale that make traffic and profits.
Tip 4: Add Trust Seals
Adding trust badges to your web store and checkout pages go a long way to improve the trust, credibility, and impression of your store and brand.
Tip 5: Look at the Numbers
When selecting a particular product that you would be selling on your store, you must carefully emphasize on the right price point for the service that you’ll be receiving, its profit capabilities, its marketing potential, and that it is not easily available (especially locally).
You must emphasize on two calculations:
Gross Profit = Sales Revenue – Cost of Goods
Profit Margin = (Gross Profit – Expenses) / Revenue
The important thing to remember is NOT to ever under-price your products. Dropshipping products on the internet allows you to buy products as a retailer at almost wholesale cost. This means that you must ideally price it at or just below the market value to make a profit.
Tip 6: Improve Customer Service
Always remember the golden words, “Customer service is the best friend of dropshipping.” If you are providing products similar to what others are selling, the only thing that can differentiate yourself from the rest is the quality of customer service. The best thing is that you can do this easily by making your customers feel respected, valued, and appreciated. This will not only help you get them keep coming back to your store every now and then, but they will also be happy to post good reviews and comments on their social networking accounts and making word-of-mouth recommendations to help you win more customers.
Tip 7: Run brilliant promotions
Dropshipping helps you save a lot of time with inventory, packaging, and shipping getting handled by the dropshipping supplier. You should utilize your free time by upping your marketing game and make the most out of marketing tools, platforms, strategies, and functionalities such as Pinterest advertisements, Facebook and Instagram advertisements, and Google AdWords. Moreover, you should enrich your web store with compelling, unique, and informative website content on different site pages such as product pages (in the form of short, crisp, and relevant product descriptions, etc.). Additionally, you should run brilliant promotions by offering discounts, deals, contests, newsletters, etc. to evoke and retain attention of existing as well as potential customers.