Dropshipping has become a prolific way to make money online and for consumers to have products shipped to them that they desire. Dropshipping refers to e-commerce stores’ ability to ship products to customers without needing a massive stock of inventory. Even then, if your suppliers have limited stock or can’t handle the volume of your orders, you can source another dropship supplier.
Dropshipping entrepreneurs launching their first stores often find themselves in a similar situation. They may know how the business works in general, but still get stuck and confused while advancing. All businesses should have a robust understanding of their competition, but it’s specifically important in dropshipping. What distinguishes one product from another is based on marketing.
It’s likely that other competitors sell the same exact product you do from the same manufacturer (it’s the nature of the competitive scene within the industry), so how you market it is everything. Whether you’re dropshipping a $1 mobile phone case or a $2,000 piece of furniture, the amount of work for you is the same, you basically need to transfer the order information to your supplier. This means that a dropshipping business is highly scalable and is virtually only limited by the processing capacity of your suppliers. Even then, if your suppliers have limited stock or can’t handle the volume of your orders, you can source another dropship supplier.
You’re going to have a ton of customers and you’re going to have a ton of emails, tracking numbers, returns, and follow-ups. Then the whole business becomes something that you need a small team to actually keep a handle on. All you need to do is pick a niche because otherwise your store is going to look like every other store and you won’t be able to stand out.
How to find successful products to dropship?
Offer a large variety – It is quite obvious that you need to have a good amount of products to offer to your customers. Try keep various types of products in your ecommerce store.
New products – You constantly need to add new products. Don’t just look at ‘Best Sellers’ on AliExpress or eBay, also look at the ‘new arrivals’ and you will often find your next top selling products.
Duplicate and modify – Constantly check which products are selling best and which are not. Try and get rid of the items which are unpopular and import more items similar to the successful ones in order to generate more sales.
One of the main issues impeding a profitable dropshipping business is the fact that you can’t control the quality of your items. Since you’re relying on a third party to fulfill these orders, you won’t be able to see the quality of the items before they ship or how the supplier is packaging them. The best way to ensure you’re selling quality products is to find a quality supplier. While choosing a supplier there are a number of things to consider, for example, the quality of the products sourced, the way they handle returns, the average shipping times, the services cost, and more.
Use dropshipping to mitigate the risk of trying out new products and used for market research. Rather than raising your inventory costs by packing your warehouse with an unpredictable product, test it out with a trial period using dropshipping. More than just discovering if it sells or not, you’ll also have a better estimate of how much it sells for, giving you a more accurate number of what quantities to buy for your initial stock.