Dropshipping is all the rage in eCommerce circles right now, and no wonder- this unique method of selling has a ton of benefits. What does it mean to dropship? Essentially, by buying and reselling products direct from manufacturers, dropshipping means you can get low prices on items and sell without needing to hold onto any inventory. All you have to do is build a store, connect with manufacturers, find customers, and then work with your manufacturers to fulfill orders.
Sounds easy, right? While the process is incredibly simple in theory, it takes work to build up any business, and dropshipping is no different. So is dropshipping right for you? Read on for three quick questions to help you decide how dropshipping could fit into your entrepreneurial goals.
1) How Will I Bring in Customers?
Do you have an existing audience that would be interested in buying products from you? If not, what methods will you use to grow your reach and compete with other sellers carrying similar products?
Digital marketing skills are key to getting your dropshipping business off the ground. Content marketing is a great start. If you already have a blog, consider tying in the products you sell with your existing content. A fashion blog, say, could include a post about different types of handbags for different outfits, with links to options that you sell. Alternately, if you choose to dropship gardening equipment, you can build up content on gardening techniques, and reference specific tools (which you also sell).
Social media is a great way to build a brand, and a dropshipping business is no different. Visually-focused platforms like Pinterest and Instagram can be incredibly valuable when showing off products. Remember that showing a product in context often converts at a higher rate. Traditional product images will give your store a professional feel, but consider ways to show your product being used, or set up with other items from your inventory. Vlogging via a channel like YouTube can work similarly as long as you find engaging ways to draw viewers to your page.
2) How Will I Make A Profit?
Because you don’t personally need to carry any inventory, the overhead costs of starting a dropshipping business are impressively low. This also means that dropshipping is incredibly low risk. This doesn’t mean, however, that your business will be instantly profitable.
A few things to keep in mind:
- Different sources suggest marking up prices anywhere from 60% to 100% to even 150%. You will need to figure out a price point where customers are willing to buy your products, and this may take some trial-and-error.
- In general, because of the cost of shipping and the generally lower volumes you are likely to sell starting out, it’s often worth choosing to sell higher-cost items. Avoid branded merchandise. Often, these are fakes. Instead, look for high-quality items at bargain prices and add a mark-up for your profits.
- Use ePacket Shipping. Essentially, this service allows for cheap, expedited shipping between China (and Hong Kong) and 38 other countries. There will likely be size and weight requirements, so check these for your location.
As with any business, it will take time and work to find your niche. Explore other similar sellers online, see what they do well, and what you would do differently, and spend some time figuring out where you fit into the market.
3) How Will I Build My Store?
Once you’ve decided on what you’re selling, where you’re getting the product, and who will comprise your customer base, it’s time to build your store. What should you look for? Start by choosing an eCommerce platform that allows you to build a store quickly, add products, and connect to your product provider. Extra points if the platform allows blogging and connects to your social media channels for easy marketing.
Remember that your store represents your business, so make sure it’s branded, easy to navigate, and has built-in tools like abandoned shopping cart emails to entice customers. The Selz eCommerce platform is a really good tool to get started. It allows you to set up a simple store, is low cost so it doesn’t eat into your margins, and even connects to dropshipping providers like AliExpress with a few simple hacks.
So is dropshipping right for you? There’s no easy answer, but hopefully these questions will help to shape your thinking. Take the time to work on your store a little bit every day, tweaking and updating as you go. Focus on learning. Take advantage of the huge range of resources available to you online. Starting a new business is never easy, but it is deeply rewarding, and there is no time like the present to get going.
Author Bio: Bryce is an eCommerce expert and content marketer extraordinaire. Outside of giving businesses and non-profits a more human, relatable voice; Bryce has written a novel, worked on a comic book, and played in a handful of bands. He lives in Colorado.
