How To Make Money From Drop Shipping?
With drop shipping, you work with suppliers who are offering you products for wholesale prices, while you set your own retail prices and make a profit out of chosen margins. As simple as it sounds, there is a list of strategies and tools that you need to utilize properly in order to maximize the return from your drop shipping business.
Choose Best-Selling Products
In order to be successful in online selling, you need to identify products that are in high demand and hard to purchase locally, but instead are bought online. You can perform online market research using Google Keyword Tool to find out how many people looked up for a specific product online. Also, you can look at the completed listings on eBay and search for the most popular items that sell 60% and more.
Monitor Your Competitors
You need to identify the gap in the current supply that you’re able to fulfill either with a product, price or any other convenience that you can offer to the potential buyer.
You can visit other eCommerce websites from the same niche, analyze their product selection, prices and the consumer buying process on their website. This way you will find valuable information on shortcomings in their supply or customer online experience that you can use and achieve competitive advantage. This research can also help you identify best-selling brands from your product category and to find reliable suppliers for your own business.
Optimize Your Online Store
Just like the physical stores choose most convenient and prominent locations in order to reach as many customers as possible, you need to optimize your online store’s location for online search. Aside from SEO, you can use Google Adwords, social media, email marketing and other online channels in order to increase visibility and traffic to your website.