Ever wondered how much do dropshippers make? How long does it take for a dropshipping eCommerce business to have its first sale? How soon you can expect the dropshipping business to make profits and have a stable income? Let’s try to figure it out.
Money-related queries somehow always are on top of the most frequently asked questions on eCommerce and dropshipping forums. And, there is nothing surprising or wrong about it. After all, none of us will ever be interested in a demanding activity that has little to no chance of success. Right?
Before we read about how much money you can make on dropshipping or how much money I can make on dropshipping, let us first read about what we must always remember on our road to success with drop shipping.
Know your pricing
Believe it or not, most dropshipping businesses fail for the simple reason that they hadn’t done their homework when it comes to pricing. There is no denying the fact that you are absolutely free to choose your own prices for the products showcased for sale by you, but how can you be certain that you are not charging too late or overcharging.
A big majority of dropshippers try to get their stock from websites like Oberlo, AliExpress, or Salehoo. Prices on these sites are almost close to wholesale here and this allows you to sell products at market value and make decent profits. Let’s say you want to sell a pen that you got for $5 from Oberlo. You should now spend some time on mathematics. For this, you should take some time out to find out how much you will be spending on handling, advertising, and administrative expenses. Once you have added everything, you probably will come to a ballpark figure of say $15 or $20 to be profitable. Things don’t end here.
Now, it is time for you to have a look at the competition by doing extensive research. There may be a possibility that they are undercutting you, probably because some dropshippers are happy even with low profit margins. However, there is nothing for you to worry about as you should be safe as long as you are charging a fair and reasonable price that is close to market value. You may resort to cutting down the margins on certain products and increase them elsewhere with a predefined purpose to increase your overall profit in the short as well as the long run. In short, the only way to learn how to keep prices right is by testing out your ideas in practice.
Know the Items You’re Selling
Choosing and selling the wrong number is the perfect recipe of disaster. It is a common tendency among Shopify and WooCommerce dropshipping store owners to just pick products belonging to their niche that they find appealing and interesting, instead of what is actually selling like hotcakes or what is of relevance and solves the problems of the end users. Don’t rush onto things and always make it a point to snoop around on Oberlo or AliExpress or your preferred platform. You must take time to find out how many reviews are under each product and whether there is actually a sustainable demand and market for it.
It is also suggested that you must buy a sample before showcasing a product on your dropshipping website. This is simply because you have showing a huge leap of faith if you have tried it our yourself and that can be downright dangerous, to say the least. Buying samples gives you the assurance that the product is of good quality and represented well.
Don’t Cling to Suppliers
Hiring the right dropshipper can make your eCommerce shop and choosing the wrong one can break your shop. Most dropshippers have a habit of clinging to a specific supplier that delivers consistently, works responsibly, and provides great communication. Of course, these are wonderful traits in any supplier but don’t you think that relying on a single supplier with you having long-term vision of making profits is a bit too much? In the world of business, you must always have insurance and backups. Markets are as unpredictable as people and there may come a day when a reputable and profitable supplier may suddenly have to shut down his business or he may decide to drop off a product of your liking without prior notice. Remember, it is easy to issue refunds to customers but bad reviews on the internet are a bit complicated and harder to handle.
Coming to how much you can make dropshipping — well the answer is, as much as you work for after carefully evaluating and interpreting the market, competition, and products at regular intervals while running the marketing part on an all-time high. At no point of time, you can be complacent that you’ll be making money or earning profits just because you have decided to enter a segment of the industry that allows you to start an online business without inventory. Yes, it is a huge blessing but you should not make it go against you. Use it in your favor by using the saved time, efforts, and resources on promoting and advertising your products to the world at large by using informative, relevant, engaging, unique, and optimized content and collaterals.
Your aim should be to educate customers before you can expect them to make a purchase with you. Don’t just treat customers as commodities that will help you earn money. NEVER! You are not doing any favor to them by selling products online. But yes, you both can surely into mutually-beneficial business relationships by you emphasizing on assisting them with how your products can improve their life or solve a problem in their life. Once you have mastered this art of convincing customers with the human touch, there will be nothing that can come in your way to success and prosperity in the world of dropshipping products online.
Grab your turnkey readymade website for sale now and live your dream of being the proud owner of a profitable eCommerce dropshipping business!