Is Starting Up a Dropshipping Business a Good Idea?
Online selling isn’t as easy as what you think. It’s even harder when you’re producing your own merchandise from scratch. Yes, it’s idyllic, but not quite practical if your capital isn’t that enough. This is probably why most entrepreneurs opt to retailing businesses instead. A new model, called dropshipping, is now taking the world by storm due to its amazing platform. Instead of dealing with the strenuous manufacturing procedures, retailers can now directly connect with suppliers to sell merchandise to customers. If this idea appeals to you, then stick around as we outline the steps on starting up a dropshipping business.
Bear in mind that you’d still be incorporating hard work and perseverance to succeed in this industry, though.
Choosing a Niche
This is probably the most important step you’ll take in starting a dropshipping business. In doing so, you might want to consider the following factors:
- Balancing passion and profit – There is a fine line between choosing a product niche based on interest and profitability. To be frank, both options are lucrative, but focusing on one of them while ignoring the other is a big no-no. As much as possible, find niches within your comfort zone, yet still relevant and timely. You’ll find out more about this as you read through our other posts.
- Avoiding too much product diversification – We get it, you want to be versatile with your wares to expand your target audience. However, what it actually does is more harm than good. This only confuses your customers instead of leading them into your brand. Remember, you are representing your own brand name more than the items that you’re selling. Make sure you’ve established your brand before widening your niches.
- Taking low shipping costs into consideration – Search potential niches that don’t have expensive shipping costs, despite the fact that your supplier handles them.
- Try getting items with a high propensity to consummation – This ensures your customers to keep coming back for more. As a result, your conversion rate and traffic remain high. Also, you’ll never worry that much about figuring out new tactics to win them back every now and then. Another preferable option would be targeting impulse buyers with great disposable income.
- Familiarizing yourself with SEO practices – When you do, you’d more likely rank higher in Google search engines. You can do this by checking the trends and researching keywords that are common in today’s time.
Checking Out the Competition
It’s hard to pursue in the dropshipping business blindly, like with any industry. Once you’ve selected a niche, find out how it fares with today’s market. You can do this by conducting research on potential competitors. It doesn’t matter whether they are big or small, as long as you can determine if your product selection is worth launching.
The rule of thumb here is that the more companies you compete with, the better. Once you’ve secured this, you can easily size them up. Eventually, you can brainstorm methods on how to be unique or gain a competitive edge.
Finding a Reliable Supplier
This is also a crucial step when starting up a dropshipping business. At this point, you’ll be putting your trust into a company that could make or break your business. Since the future is uncertain, you don’t want to partner with a manufacturer who doesn’t communicate well. Here’s what you can do:
- Conduct extensive research on the company’s background, current performance, product reviews, client feedback, and so forth. You should be able to do this in Google. If you can’t even search them there, then it should raise a red flag already.
- Find a partner that is very approachable and responsive. You must be able to contact them in many ways, like via email and phone patch. If possible, find a supplier that’s within our country so that you can meet personally. If that won’t be the case, then simply make sure you can approach them conveniently instead.
- Share your terms, but don’t divulge too much. There are apparent hazards to oversharing, and you don’t want those to happen to you. Scamming is nothing new, so exercise caution and professionalism in dealing with any supplier you wish to collaborate with.
Building Your Dropshipping Platform
Creating a website is not that complicated, really. However, you need to take one step ahead with your goals. Starting with WordPress is a perfect way in starting up a dropshipping business, but there’s more to WP than just making publishing content.
Since you’re selling online, you’d want to be as noticeable as possible in search engines. We’ve indicated earlier that SEO takes a huge part in making this possible. Fortunately, the DropShipWP integration is able to manage your conversion rates well and to increase traffic effortlessly. This all-in-one platform has everything you need in a dropshipping website As a result, you can simply focus on cultivating your brand and attracting customers instead of manually listing your items.
Formulate an Effective Marketing Plan
It’s much easier to lure customers into your products nowadays, thanks to social media. Leverage this to your advantage by actively campaigning yourself through various social networks. There are tons of possibilities you can do and achieve. The end goal here is securing an online presence, so you’d want the attention in the best possible way.
Since everyone has been doing the same thing, why not employ disruptive marketing methods instead? Shoot a viral video instead of a boring ad commercial. Offer promos and discounts right off the bat, but of course without compromising your sales. Truly, the opportunities are endless, but it’s up to you to make them work.
Once you’ve completed the steps, you can track your progress with several analytics measures. However, this can be really tricky. Conventionally, companies use ROI by tracking through clicks and conversions. Unfortunately, that only works on quantitative data. Tracking comments won’t be as clear, especially if the company is very enormous.
Instead, you can determine and define your own success, which depends on your objectives. Find out what products your audience loves by reaching out to them.
Overall, your dropshipping business doesn’t stop at resolving customer queries and product problems. You must be able to keep track of response time, resolution time, and customer satisfaction as well.