Digital entrepreneurs are often troubled by the uncertainty that revolved around the profitability of their business model. With the rapid speed at which technology is developing, we now have both a glimmer of hope and a high understanding that new digital business models are temporary.
What is Dropshipping and Why is It Such a Big Deal?
If you still haven’t got the clue as to what dropshipping is we will give you a clear understanding as to what the business model is. Dropshipping is mainly shipping products directly to your customers from your suppliers. This clearly means that you don’t need to hold inventory whatsoever.
The reason why dropshipping is such a highly favored form of business is just because there is no barrier to entry and there is little capital required. Moreover, there are low monthly overheads and not stuck holding stock which may possibly not sell. There are endless resources to learn on the subject prior to starting and the most important part is that there are great platforms which help automation with this business model.
Is It Possible to Make Your Dropshipping Store Profitable in 2021?
Now you know that a lot of people know how to start dropshipping and that a plenty of folks are probably dropshipping right now, it’s time to figure out how to do dropshipping store and not to fall in the saturated dropshipping space.
You should keep in mind that you have to start treating it as a real entity if you want to excel in the field. Prior to this, people could just easily open a Shopify store; place some trending products in it that cannot be sold in retail stores.
Is Competition Tough in The Dropshipping Business?
The very first thing that pops up in our mind is if dropshipping is dead or not and why competition leads to saturation.
Dropshipping is not new. I’ve been doing it, myself, since way back in 2008. And people have been doing it longer than me.
The misconception is that dropshipping has been around for such a longer duration of time and there’s no space for new stores. The reality is that when you’re using this model when you’re dropshipping, your most important goal should always be to coordinate with new suppliers and new brands and always deal in the newest as well as best products that come out.
The products that were renowned back in the beginning are not still popular these days. Although some of them are, the main are not. Right now, the industries that businesses deal in, they are still getting sales, they are still doing good when it comes to sale.
8 Things that Can Make Your Dropshipping Business Profitable in 2021
If you are ready to start a business that can take on with retail giants, and do so when you are on budget, then you have to follow some of the steps mentioned here.
Prior to going into the business, you should keep in mind that it doesn’t take a lot of startup money to launch a dropshipping business, it will need a huge amount of hard work.
1. Think out of the box
- Just in case you if you are not yet impressed on how to be unique and making it slow is better than establishing a dropshipping store in several hours and just like 70% of all the other dropshipping stores.
- It is worth mentioning here that most of them don’t need effort into their dropshipping store. You open their store and opt to import some products without transforming anything and go for advertising.
- This clearly means that a lot of people that are dropshipping these days are selling the same kind of products with similar information they got from the same dropshipping suppliers.
- It also stands true beyond the shadow of doubt that having the same product is not a bad thing still, but to also have the similar images, descriptions and others to name a few, this will definitely not help you flourish your dropshipping business.
2. Offer exceptional customer support
- Another unique thing in the dropshipping business is exceptional customer support. While customer service can take your time, with hours saved every week through dropshipping as well as automation, it’s obviously worth the investment.
- When opting to work with a wholesale provider, they will never deal with the customer directly, so it’s up to you to establish seamless service for prospective and existing customers.
- This means things like going back to inquiries rapidly and friendly, asking for product reviews, and establishing with returns and failed orders with professionalism and a smile.
- Besides, try other tactics as well such as offering special discounts and deals, and ensure their checkout experience is rapid and convenient and this is specifically important for mobile, so ensure to test your store on a smartphone!
3. Market in the smart way possible
- One of the most amazing benefits of an automated dropshipping business is the amount of time you save which can easily focus you on what really matters i.e. growth strategy.
- A huge part of this is how to implementing smart marketing tactics. There’s a method to market well that is still cost beneficial and effective, which is specifically crucial for small business owners who are fresh out of the gate.
- Certain other tools and tricks include both paid as well as unpaid solutions. Google and Facebook Ads can be the best paid options as there you easily target to a defined audience in a more clear way that are known to have solid conversion rates.
- To easily open up the funnel and look for new customers, social media platforms such as Pinterest and Instagram, you can offer a chance to visually offer your product with fascinating images that can easily help generate new leads without consuming that much bucks.
- Keep in mind that making millions won’t happen rapidly, but there are some certain smart tactics that anyone can easily put into place and which can easily lead to exponential ecommerce growth at a fast pace.
4. Avoid under-pricing your products
- The coolest thing about dropshipping products from Oberlo is that it helps you to easily maintain a lower product cost.
- The cost of goods is rather close to the wholesale price, helping you to sell products at market value and reasily make some money. The main focus in a dropshipping business is to be profitable. Besides, you should also consider the cost of goods, marketing and also business expenses, and finally hiring a team.
- Just in case if certain other brands are undercutting their prices, try not to undercut yours. Till the moment your prices are fair and within market value, you would easily be able to maintain a profitable price point.
- Besides, you should also be able to enhance average order value so that you make a comparatively more profit from every order. Create strategies that will easily enable you to make more money overall.
5. Focus on Business Automation
- You couldn’t agree more to the fact that using dropshipping tools such as Oberlo will tend to automate many aspects of your business. As this dropshipping tutorial points come out, you can easily do product research prior to launching an online store, and that is why Oberlo is just the right kind of tool you look for.
- In case if you have a full-time job or are you are on a lookout to create a more passive income, figuring out as how to automate several aspects of your business will help you more freedom to go for your passions.
- The best thing about Ecommerce automation tools is that they can easily can help you grow as well as scale your business rapidly. Besides, buffer allows you to easily automate social media posting. Kit automates marketing tasks such as advertising, retargeting, emails, and several others.
- In addition, you can also test out marketing automation software and also Shopify tools, to easily help simplify your marketing tasks.
6. Make sure that your website is presentable
- One of the most useful dropshipping tips is to ensure your website is customer friendly and offers unique experience. This will clearly mean your website shouldn’t worry a customer.
- There are several new store owners who start marketing their stores when their home page has no images and has placeholder text and all of their offerings are lumped together in one huge category.
- Prior to launching your store, make sure that the other websites are in your niche, the way their home page look like and what is the format of the copy on their product page.
- Besides, you should also make sure that images include logos on them or not. What kinds of pages does their website have and most importantly which features or apps does the store include on their website.
7. Always go for ePacket
- As a dropshipper, you can be free to sort products depending on ePacket shipping. Since ePacket shipping is the quickest affordable shipping method, you’ll be able to make sure quick delivery to customers without that much spending the money.
- On average, ePacket shipping costs $5 for most products. This helps you to still earn a profit when selling goods at fair market value.
- It has been a common observation that packet deliveries reach customers within a week while making it the best delivery method for dropshippers around the globe.
8. Be active on daily basis
- Keep in mind running a business needs daily effort. You don’t have to spend fair enough time in a day working on your business but you’ll have to spend just an hour a day on your store as you flourish your sales.
- You’ll have to process orders on daily basis so that products arrive to your customers quickly. You’ll also have to respond to customer inquiries within 4 hours so that customers can easily depend on you.
- Moreover, marketing efforts will also have to take place each day. You can also automate your social media posting at the start of the week. However, you should focus to be active on social media on daily basis and make sure that your ads are running as well.
Dropshipping helps entrepreneurs to offer products without having to carry inventory. The reason why it is the best option to go for is just because product manufacturer can easily creates, packages, and ships the product out easily to your customer for you while making this a low maintenance business model without any hassle.