Dropshipping being one of the most popular E-commerce businesses is a very awesome and lucrative business; it allows for time flexibility and can be made fully automated after necessary steps have been done.
But What is Dropshipping?
Dropshipping is basically selling a product without having the product in stock.
Doesn’t make much sense right??
It’s just like buying a product online for $5 and selling it on your store for $15 but when dropshipping you do not come in contact with the product.
In dropshipping the supplier of the product handles the shipping.
The picture below sheds more light on this.
Is Dropshipping Legal?
Yes, Dropshipping is Legal, Even big Stores also Dropship in order to have more sales.
How can one Start Dropshipping?
Below are some steps that can be taken to start dropshipping.
Stick around till the end of this article and I’ll drop a valuable tip to start dropshipping successfully.
Choose a Store to Dropship from
There are thousands of online Stores on the Internet such as Aliexpress, Amazon, EBay and Wal-Mart, etc. They all have lots of products at different prices, so it’s best to pick one to dropship from. If you’re new to dropshipping I’ll personally recommend Aliexpress because products there are mostly from China which deals mainly with Manufacturing of Goods at cheaper rates and there are lots of suppliers there.
Pick Your Dropshipping Niche.
A Dropshipping niche is basically a category of items you want to dropship for example you may pick laptop accessories as your Dropshipping niche; there you would only dropship products related to laptops ONLY.
Choosing a proper Niche
In dropshipping we have two types of Niche, the General Niche and the Targeted Niche
The General store could be a store that Sell ICT gadget such as Laptops, TV’s, and Mobile Phones, etc but a targeted Niche store would be selling laptops accessories only.
You could open a General niche store as this would give you more scaling potential but you wouldn’t make more money as you would in a Targeted Niche Store.
Also your niche should have much Audience (People who are interested). For example there are two stores, one that sells Groceries and another that sells Gym equipments, Which of them do you think will have more items sold in a short period of time?.
Of course it will be the Grocery store because more people are interested in groceries most of the time and also it might take a long time for the store that sells the Gym equipments because those equipments aren’t bought all the time, sometimes they might just have 3 products sold a month.
SO you must pick a good niche for your store.
Choose Products to Sell.
After Choosing your store’s niche, you need to select product related to your store (You can select just 20 products if you’re new to Dropshipping), this can be a daunting task because not all products would sell as you have expected. Also your product shouldn’t be something that someone would be able to walk up to a store and get, it should be something fancy and rare to get.
Create your Online Dropshipping store/Website.
Unlike before that Creating a website can be a daunting task, it is now very easy to make one and easily design it.
Personally I would recommend Shopify.
After creating your store, you need to add your products to the store.
If you used Shopify you could easily do this by installing the Oberlo app and then installing the Oberlo chrome extension (For Google chrome browser only).
When Dropshipping a product, the description of the product on the sales page shouldn’t be what the supplier has written but rather should be different, you should take your time to write down the product description while taking notes of Search Engine Optimization (SEO) and keywords used, also the description should not be less than 400 Words and your product description should always be TRUE as this will build customer trust and always add your product shipping time range, Always remember that your customer Trust is your TOP priority
Choose reasonable selling prices for your Products.
Instead of randomly choosing selling prices for each of your products you could create a formula. For example you could use this: Selling price = ((cost price * 2) + Shipping fee). So if your cost price was $10 and shipping fare was $5,
Therefore, your selling price would be = $(10 * 2) + $5 = $25
So your profit here is $10;
You could change the formula to fit your expenses and your profit;
I’ve seen an acquaintance sell a product of $3.55 for $20.
Drive Traffic your products.
Now that your store is ready and you’ve added your products to your store with your selling prices, the next steps is to raise awareness/driving traffic for your product and make people Impulse Buy.
You must be wondering how my acquaintance in the preceding step was able to sell a product of $3.55 for $20 which is over 3 times its original price; it is because he was able to make his customer Impulse buy.
To make your customer Impulse Buy is to give them a mouth watering deal that makes your customer not want to let the product go by. You could do this by offering discount of over 40% or adding scarcity timers, scarcity timers in other words is like saying “This product will be available only for the next three days or will be sold at 70% discount for the next 3 days”, This would make your customer after seeing the ad not want to miss the opportunity.
Social media marketing is the best way for advertising one’s product. Use platforms such as Facebook and Twitter to advertise your products, never depend on free traffic as this wouldn’t give you much traffic to your site.
Create ads for each of your products as this would make you to be able to find your wining product.
Your Ads should have images and videos that show the product in USE as this will help the Viewer see the function, importance and need of the product.
Choosing your winning product.
After a week or two of running Ads, check the products that have been having more sales, those are your winning products, after discovering them cut-off the ads the ads that aren’t making much sales and increase the budget of the Ads that are making sales, this is will boost your sales.
Keep in Contact with your customers.
Every Customer loves a good customer service, so you can try to keep in contact with your previous customers, customers that their products are being shipped and your store visitors.
Consistently manage your dropshipping store.
Now that you’ve successfully started your Store spend 1-2 Hours per day handling Orders and emails for your store, if you do not have enough time you could hire a virtual assistant freelancer from freelancing site such as Upwork, Fiverr and Freelancing.com to handle all transactions made on your site.
If you’ve followed all this steps be sure that you are on your way to building a dropshipping store that would feed you for a very long time.
So like I said at the beginning of this article the tip is that new dropshippers should always dropship to the United States Of America (USA), this is because the Shipping fee of dropshipping from china to USA is less compared to others and has a faster delivery rate.
Also, you can check out trending products by using the SHOPINSPECT app.
If you follow all these tips be rest assured your success in E-commerce going to be Great .