Dropshipping is a great business model for any hopeful entrepreneur. With dropshipping, you can launch an ecommerce business using pre-existing products. Using a platform like Shopify combined with an Oberlo application, you can import products in seconds and have them shipped directly from the manufacturer to the consumer when an order is placed.
There are plenty of benefits for dropshipping. First and foremost, it’s very low risk and you can get started quickly. Unlike traditional businesses, there is no minimum order and you don’t have to deal with starting a product line from scratch. This makes it a relatively low cost business to start. Most of your early expenses will come from marketing, advertising, and website design. And lastly, it’s a business that automates itself: while you’re working a regular job, your website runs on its own, and you don’t have to worry about order fulfillment.
With those benefits in mind, here are some tips on how to succeed with your dropshipping business:
Choose The Right Niche
Choosing a niche is one of the most important aspects of dropshipping. First and foremost, start with a niche that you’re passionate about. Love to travel? Does costume jewelry make you happy? Home decor? When you’re passionate about the niche you’re focused on, you’re more likely to continue driving your business forward, even when you hit some roadblocks and struggles.
However, it’s important to keep in mind that choosing the right niche isn’t just about picking something you love. It also has to be a profitable niche, which takes a little more research. Customer acquisition and marketing should be your top priorities (as the products are already there for you), so market research is necessary.
Curate Your Product List Finely
As you build out your potential list of products, remember to stay ultra-curated. Too many products could create option paralysis; instead, focus on a handful of great products. A limited amount of products also makes it easier for you to work with different vendors. For example, one thing you’ll want to do is keep your shipping costs low. Choose products from vendors that make this possible.
Create a Brand
One of the hardest aspects of building a successful dropshipping company is creating your brand. After all, with products that aren’t yours, you have little say over how the product looks and feels. However, you do have control over branding, which can make all the difference. By rebranding something as your own, you’re more likely to connect with your target market.
Test Your Products
With a shorter product listing, you can invest in ordering those products for yourself to test their quality and usability. This way, you can ensure that your customers are getting good product. Many dropshippers make the mistake of simply pulling dozens or hundreds of products from sites like AliExpress and getting a customer who is unhappy with the quality of a product that you never tested. Over time, as you bring in more money, you can expand your product lineup.
Understand How Dropshipping Works
To truly succeed with dropshipping, you have to have a thorough understanding of how drop shipping works. This means studying the dropshipping business in and out before you even begin to brainstorm ideas for your own business. Read every blog post you can and books you can get your hands on. Watch YouTube videos and tutorials. Become an expert in the theory before you put it into practice.
Choose the Right Team
Once you start succeeding in your dropshipping business, it’s time to gather a team of your own. Because of the nature of the business, chances are you’ll be employing a remote team. And it’s for the best: many studies have shown that remote teams are more productive when they’re autonomous, and likely to be happier in their positions. You can post a listing for your remote team on traditional job boards like Indeed, or turn to freelance sites like Upwork to find detailed profiles with verified feedback.
No matter where you find your potential hires, it’s important to recognize that even with a remote team, having an employee onboarding process is critical to your success. According to Lucidchart, “Onboarding is the process of helping your company’s new hires adjust to the social and performance aspects of their jobs as quickly as possible.” This means talking to your new hires about what’s expected of them, how to use different project management software, explaining the vision of your dropshipping business, and showing them how to navigate the backend of your website.